LONG-TERM DEBT

12 Months Ended

Dec. 31, 2011

LONG-TERM DEBT

LONG-TERM DEBT

Note 14 — LONG-TERM DEBT

Debt consisted of the following at December 31,

(dollars in thousands)	2011		2010
Commercial paper payable through 2012 at a weighted-average interest rate of 0.4%	$	46,500	$	158,750
Notes payable in 2012 at an interest rate of 4.875%	300,000		300,000
Industrial revenue bond payable in 2012 at an interest rate of 1.6%	8,000		8,000
Notes payable in 2014, at an interest rate of 5.65% less unamortized discount of $349 and $484, respectively	399,651		399,516
Notes payable in 2019, at an interest rate of 6.8% less unamortized discount of $938 and $1,061, respectively	399,062		398,939
Notes payable in 2021, at an interest rate of 4.5% includes $3,268 fair value of interest rate swap, less unamortized discount of $2,534	400,734		—
Debt of subsidiary companies payable through 2013 at interest rates of 7.3% to 20.6%	13,585		20,469
Obligations under capital leases	629		792
Total debt	1,568,161		1,286,466
Less current portion	13,411		2,941
Total long-term debt	$	1,554,750	$	1,283,525

The commercial paper, $300 million notes, and Industrial Revenue Bond, all due in 2012, have been classified as long-term debt, to the extent of available long-term backup credit agreements, in accordance with the Company’s intent and ability to refinance such obligations on a long-term basis.  The weighted-average interest rate of commercial paper outstanding at December 31, 2011, was 0.4 percent.  The maximum outstanding during 2011 was $574.5 million, and the average outstanding during 2011 was $289.8 million.  The weighted-average interest rate during 2011 was 0.4 percent.

As of December 31, 2011, the Company had available from its banks an $800 million revolving credit facility.  This credit facility is used principally as back-up for the Company’s commercial paper program and expires on July 21, 2016.  The revolving credit facility is supported by a group of major U.S. and international banks.  Covenants imposed by the revolving credit facility include limits on the sale of businesses, minimum net worth calculations, and a maximum ratio of debt to total capitalization.  The revolving credit agreement includes a combined $100 million multicurrency limit to support the financing needs of the Company’s international subsidiaries.

On July 27, 2009, the Company issued $400 million of notes due in 2014 with a fixed interest rate of 5.7 percent and $400 million of notes due in 2019 with a fixed interest rate of 6.8 percent.  The proceeds of these notes were used as partial funding of the acquisition of the Alcan Packaging Food Americas business.

On October 4, 2011, the Company issued $400 million of notes due in 2021 with a fixed interest rate of 4.5 percent. The Company used the net proceeds of the notes to repay outstanding commercial paper and for general corporate purposes.  The Company intends to fund the repayment of its $300 million aggregate principal amount of 4.875 percent notes due April 1, 2012 with the proceeds from additional commercial paper issuances.  Concurrent with the issuance, the Company entered into four interest rate swap agreements with a total notional amount of $400 million.  These contracts were designated as hedges of the Company’s $400 million 4.5 percent fixed-rate debt due in 2021.  The variable rate for each of the interest rate swaps is based on the six-month London Interbank Offered Rate (LIBOR), set in arrears, plus a fixed spread.  The variable rates are reset semi-annually at each net settlement date.  The net settlement benefit to the Company, which is recorded as a reduction in interest expense, was $1.6 million in 2011.  At December 31, 2011, the fair value of these interest rate swaps was $3.3 million, in the Company’s favor, using discounted cash flow or other appropriate methodologies, and is included in deferred charges and other assets with a corresponding increase in long-term debt.

The industrial revenue bond has a variable interest rate which is determined weekly by a “Remarketing Agent” based on similar debt then available.  The interest rate at December 31, 2011, was 1.6 percent and the weighted-average interest rate during 2011 was 1.7 percent.

Long-term debt maturing in years 2012 through 2016 is $321.4 million, $47.1 million, $399.8 million, $0 million, and $0 million, respectively.  Certain of these amounts have been classified as long term liabilities in accordance with the Company’s ability and intent to refinance such obligations on a long term basis.  The Company is in compliance with all debt covenants.