Long-Term Debt

At January 1, 2017, Teledyne had $509.7 million in long-term debt outstanding. At January 3, 2016, Teledyne had $754.1 million in long-term debt outstanding.

In December 2016, the Company entered into an amendment relating to term loans of $182.5 million in aggregate principal amount (the “Term Loans”) to extend the maturity date of the Term Loans from March 1, 2019 to January 31, 2022 and extending the date on which amortization of principal begins; and generally lowering the applicable rate for base rate and Eurocurrency loans. The other material terms of the Term Loans, including covenants, remain unchanged. In November 2015, the Company issued $125.0 million in aggregate principal amount of senior unsecured notes. The notes consisted of $25.0 million of 2.81% senior unsecured notes due in November 2020, and $100.0 million of 3.28% senior unsecured notes due in November 2022. In December 2015, the Company amended the $750.0 million credit facility (“credit facility”) to extend the maturity from March 2018 to December 2020. 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. 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 0.12% and 0.25% 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 was $3.5 million in outstanding funding advances under the uncommitted credit line at January 1, 2017 and no amounts outstanding at January 3, 2016. The Company also has $7.4 million outstanding under capital leases, of which $1.3 million is current. At year-end 2016, Teledyne had $15.5 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 $735.5 million at January 1, 2017; noting, however, that Teledyne has committed to have remain available for borrowing up to $410.0 million under this facility to fund the pending e2v acquisition. The credit agreement and term loans requires the Company to comply with various financial and operating covenants and at January 1, 2017, the Company was in compliance with these covenants. In connection with the agreement to acquire e2v, in December 2016, Teledyne, together with certain of its subsidiaries as guarantors, has entered into a £625.0 million bridge credit facility (the “Bridge Facility”) to fund the acquisition and related transaction costs, in order to meet the requirement under the U.K. City Code on Takeovers and Mergers that we have sufficient and certain resources available to fund the consideration for the acquisition.. The lenders under the Bridge Facility are committed to lend up to £345.0 million to fund the acquisition, No amounts have been drawn against the Bridge Facility to date.

Total interest expense including credit facility fees and other bank charges was $23.6 million in 2016, $24.0 million in 2015 and $19.1 million in 2014.

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 January 1, 2017, and January 3, 2016, approximated the carrying value.



Long-Term Debt (in millions):	January 1, 2017			January 3, 2016
$750.0 million revolving credit facility, due December 2020, weighted average rate of 1.67% at January 3, 2016	$	—		$	150.5
Term Loans due through January 2022, weighted average rate of 1.90% at January 1, 2017, and 1.55% at January 3, 2016	182.5			190.0
4.74% Fixed Rate Senior Notes due September 2017	100.0			100.0
2.61% Fixed Rate Senior Notes due December 2019	30.0			30.0
5.30% Fixed Rate Senior Notes due September 2020	75.0			75.0
2.81% Fixed Rate Senior Notes due November 2020	25.0			25.0
3.09% Fixed Rate Senior Notes due December 2021	95.0			95.0
3.28% Fixed Rate Senior Notes due November 2022	100.0			100.0
Other debt	4.2			—
Total long-debt	611.7			765.5
Current portion of long-term debt and debt issue costs	(102.0		)	(11.4		)
Total long-term debt, net of current portion	$	509.7		$	754.1

No minimum principal payments on the $750.0 million revolving credit facility are required until December 2020. The Company began making quarterly minimum principal payments on the $200.0 million term loans in 2015. Future minimum principal payments on long-term debt are as follows: 2017 - $100.7 million; - 2018 - $1.1 million; 2019 - $34.6 million; 2020 - $108.6 million; 2021 - $102.4 million; 2022 and beyond - $264.3 million. The Company has no sinking fund requirements.