Long-Term Debt, Capital Lease and Letters of Credit

9 Months Ended

Oct. 01, 2017

Long-Term Debt, Capital Lease and Letters of Credit



	Balance at
Long-Term Debt (in millions):	October 1, 2017			January 1, 2017
$750.0 million credit facility due December 2020, weighted average rate of 2.41% at October 1, 2017	$	285.0		$	—
Term loans due through January 2022, weighted average rate of 2.61% at October 1, 2017 and 1.90% at January 1, 2017	182.5			182.5
4.74% Fixed Rate Senior Notes due and repaid September 2017	—			100.0
Term loan due October 2019, variable rate of 2.49% swapped to a Euro fixed rate of 0.7055% at October 1, 2017	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
0.70% €50 Million Fixed Rate Senior Notes due April 2022	59.0			—
0.92% €100 Million Fixed Rate Senior Notes due April 2023	118.2			—
1.09% €100 Million Fixed Rate Senior Notes due April 2024	118.2			—
Other debt at various rates due through 2018	3.0			4.2
Total debt	1,190.9			611.7
Less: current portion of long-term debt and debt issuance costs (a)	(3.4		)	(102.0		)
Total long-term debt	$	1,187.5		$	509.7

(a) Includes debt issue costs associated with the term loans and senior notes of $2.2 million at October 1, 2017 and $1.4 million at January 1, 2017.

Available borrowing capacity under the $750.0 million credit facility, which is reduced by borrowings and certain outstanding letters of credit, was $447.5 million at October 1, 2017. The credit agreements require the Company to comply with various financial and operating covenants and at October 1, 2017, the Company was in compliance with these covenants. In March 2017, Teledyne entered into a $100.0 million term loan with a maturity date of October 30, 2019. Subsequently, in March 2017, Teledyne entered into a cross currency swap to effectively convert the $100.0 million term loan to a €93.0 million denominated instrument with a fixed euro interest rate of 0.7055%. The proceeds from the term loan were used in connection with the acquisition of e2v.

On April 18, 2017, Teledyne entered into a note purchase agreement for a private placement of €250.0 million of senior unsecured notes due through April 2024. Teledyne used the proceeds of the private placement, among other things, to repay indebtedness and for general corporate purposes.

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 is 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 October 1, 2017 and January 1, 2017, approximated the carrying value.

At October 1, 2017, the Company had $7.0 million in capital leases, of which $1.3 million is current. At January 1, 2017, the Company had $7.4 million in capital leases, of which $1.3 million was current. At October 1, 2017, Teledyne had $20.9 million in outstanding letters of credit.