Long-Term Debt and Letters of Credit

3 Months Ended

Apr. 04, 2021


	Balance at
Long-Term Debt (in millions):	April 4, 2021		January 3, 2021
$750 million credit facility due March 2024, weighted average rate of 1.21% at April 4, 2021 and 1.05% at January 3, 2021	$	125.0	$	125.0


Term loan due October 2024, variable rate of 1.11% at April 4, 2021 and 1.15% at January 3, 2021, swapped to a Euro fixed rate of 0.6120%	150.0		150.0
0.65% Fixed Rate Notes due April 2023	300.0		—
0.95% Fixed Rate Notes due April 2024	450.0		—
1.60% Fixed Rate Notes due April 2026	450.0		—
2.25% Fixed Rate Notes due April 2028	700.0		—
2.75% Fixed Rate Notes due April 2031	1,100.0		—
3.09% Fixed Rate Senior Notes repaid March 2021	—		95.0
3.28% Fixed Rate Senior Notes repaid March 2021	—		100.0
0.70% €50 Million Fixed Rate Senior Notes repaid March 2021	—		61.1
0.92% €100 Million Fixed Rate Senior Notes repaid March 2021	—		122.1
1.09% €100 Million Fixed Rate Senior Notes repaid March 2021	—		122.1





Other debt	0.6		4.0
Debt discount and debt issuance costs	(32.3)		(0.8)
Total debt, net	3,243.3		778.5
Less: current portion of long-term debt and other debt	—		(97.6)
Total long-term debt, net of current portion	$	3,243.3	$	680.9

In the first quarter of 2021, Teledyne completed various financing activities related to the pending acquisition of FLIR and incurred related interest and debt expense totaling $33.1 million. These activities included entering into a $4.5 billion short term stand-by bridge facility on January 4, 2021, as required by the definitive agreement, resulting in debt expense of $17.2 million. In addition, on March 17, 2021 Teledyne called $493.3 million of existing fixed rate senior notes and incurred debt extinguishment expenses of $13.4 million, which is included in interest and debt expense, net. On March 22, 2021, Teledyne completed all permanent financing for the pending acquisition of FLIR. The permanent financing consists of $3.0 billion investment-grade bonds (the “Notes”), including $300.0 million aggregate principal amount of 0.65% Notes due 2023, $450.0 million aggregate principal amount of 0.95% Notes due 2024, $450.0 million aggregate principal amount of 1.60% Notes due 2026, $700.0 million aggregate principal amount of 2.25% Notes due 2028 and $1.1 billion aggregate principal amount of 2.75% Notes due 2031. We may redeem the $450.0 million of 0.95% Notes due 2024 at any time or from time to time, in whole or in part, at the Company’s option, from and after April 1, 2022, at a redemption price equal to 100% of the principal amount of the Notes redeemed. Given the permanent financing, together with certain continuing debt, Teledyne expects its weighted average borrowing cost to be less than two percent upon closing the acquisition. The interest expense incurred in the quarter associated with the $3.0 billion Notes offering related to the pending FLIR acquisition totaled $2.5 million. Previously on March 4, 2021, Teledyne entered into a $1.0 billion Term Loan Credit Agreement and Amended and Restated Credit Agreement with capacity of $1.15 billion both maturing on March 4, 2026. The terms of the $1.0 billion

Term Loan Credit Agreement allow for prepayments, at the Company’s option, at any time or from time to time, in whole or in part without premium or penalty. As a result of the completion of the permanent debt financing, on March 22, 2021 Teledyne terminated the $4.5 billion stand-by bridge facility. Teledyne intends to use the proceeds from the Notes together with the proceeds from the $1.0 billion Term Loan Credit Agreement, expected to be drawn at the closing of the acquisition, and cash on hand to pay the cash portion of the consideration for the FLIR acquisition and refinance certain existing debt.

Available borrowing capacity under the $750.0 million credit facility, which is reduced by borrowings and certain outstanding letters of credit, was $616.0 million at April 4, 2021. The credit agreements require the Company to comply with various financial and operating covenants and at April 4, 2021, the Company was in compliance with these covenants. At April 4, 2021, Teledyne had $26.5 million in outstanding letters of credit.

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 April 4, 2021 and January 3, 2021, approximated the carrying value.