Long-Term Debt

At December 28, 2014, Teledyne had $609.8 million in long-term debt outstanding. At December 29, 2013, Teledyne had $538.1 million in long-term debt outstanding.

December 2014, the Company issued $125.0 million of senior unsecured notes which consisted of $30.0 million of 2.61% senior unsecured notes due December 2019, and $95.0 million of 3.09% senior unsecured notes due December 2021. In March 2013, the Company amended its $550.0 million credit facility to increase the borrowing capacity to $750.0 million and extend the maturity date from February 2016 to March 2018. The other material terms of the credit facility, including covenants, remain unchanged. Excluding interest and fees, no payments are due under the credit facility until it matures. In November 2013, the Company amended its $200.0 million term loan agreement to extend the maturity date from October 2015 to March 2019. The other material terms of the term loan agreement, including covenants, remain unchanged. The credit agreements require the Company to comply with various financial and operating covenants, including maintaining certain consolidated leverage and interest coverage ratios. Borrowings under our credit facility and term loans are at variable rates which are, at our option, tied to a Eurocurrency rate equal to LIBOR (London Interbank Offered Rate) plus an applicable rate or a base rate as defined in our credit agreements. Eurocurrency rate loans may be denominated in U.S. dollars or an alternative currency as defined in the agreement. Eurocurrency or LIBOR based loans under the facility typically have terms of one, two, three or six months and the interest rate for each such loan is subject to change if the loan is continued or converted following the applicable maturity date. The Company has not drawn any loans with a term longer than three months under the credit facility. Base rate loans have interest rates that primarily fluctuate with changes in the prime rate. Interest rates are also subject to change based on our consolidated leverage ratio as defined in the credit agreement. The credit agreement also provides for facility fees that vary between 0.125% and 0.30% of the credit line, depending on our consolidated leverage ratio as calculated from time to time.

Teledyne also has a $5.0 million uncommitted credit line which permits credit extensions up to $5.0 million plus an incremental $2.0 million solely for standby letters of credit. This credit line is utilized, as needed, for periodic cash needs. There were no outstanding funding advances under the uncommitted credit line at December 28, 2014, or December 29, 2013. The Company also has $10.4 million outstanding under capital leases, of which $1.3 million is current. At year-end 2014, Teledyne had $16.8 million in outstanding letters of credit.

Available borrowing capacity under the $750.0 million credit facility, which is reduced by borrowings and certain outstanding letters of credit, was $629.7 million at December 28, 2014. The available borrowing capacity does not reflect the payment on February 2, 2015, of $134.9 million in connection with an accelerated share repurchase agreement. The credit agreement and term loans requires the Company to comply with various financial and operating covenants and at December 28, 2014, the Company was in compliance with these covenants.

Total interest expense including credit facility fees and other bank charges was $19.0 million in 2014, $20.4 million in 2013 and $18.2 million in 2012.

Teledyne estimates the fair value of its long-term debt based on debt of similar type, rating and maturity and at comparable interest rates. The Company’s long-term debt was considered a level 2 fair value hierarchy and is valued based on observable market data. The estimated fair value of Teledyne’s long-term debt at December 28, 2014, and December 29, 2013, approximated the carrying value. Long-term debt consisted of the following (in millions):



Balance at	December 28, 2014			December 29, 2013
4.04% Senior Notes due September 2015	$	75.0		$	75.0
4.74% Senior Notes due September 2017	100.0			100.0
2.61% Senior Notes due December 2019	30.0			—
5.30% Senior Notes due September 2020	75.0			75.0
3.09% Senior Notes due December 2021	95.0			—
Term Loans due through March 2019, weighted average rate of 1.28% at December 28, 2014, and 1.29% at December 29, 2013	200.0			200.0
Other debt at various rates due through 2031	14.7			16.0
$750.0 million revolving credit facility, weighted average rate of 1.24% at December 28, 2014, and 1.26% at December 29, 2013	105.0			74.2
Total debt	$	694.7		$	540.2
Less: current portion of long-term debt	(84.9		)	(2.1		)
Total long-term debt	$	609.8		$	538.1

No minimum principal payments on the $750.0 million revolving credit facility are required until March 2018. The Company will be required to make minimum principal payments on the $200.0 million term loans beginning in March 2015. Future minimum principal payments on long-term debt are as follows: 2015 - $84.9 million; - 2016 - $10.6 million; 2017 - $120.3 million; 2018 - $131.4 million; 2019 - $177.5 million; 2020 and beyond - $170.0 million. The Company has no sinking fund requirements.