DEBT

9 Months Ended

Sep. 30, 2022

DEBT [Abstract]

DEBT

Note 7: Debt

Debt is detailed as follows:

	Effective	September 30	December 31	September 30
in millions	Interest Rates	2022	2021	2021
Short-term Debt
Bank line of credit expires 2027 1		$          312.0	$            0.0	$            0.0
Commercial paper expires 2027 1		$              0.0	0.0	0.0
Total short-term debt		$          312.0	$            0.0	$            0.0
Long-term Debt
Bank line of credit expires 2027 1		$              0.0	$            0.0	$            0.0
Commercial paper expires 2027 1		550.0	0.0	0.0
Delayed draw term loan expires 2026		550.0	1,100.0	1,100.0
8.85% notes due 2021		0.0	0.0	6.0
4.50% notes due 2025	4.65%	400.0	400.0	400.0
3.90% notes due 2027	4.00%	400.0	400.0	400.0
3.50% notes due 2030	3.94%	750.0	750.0	750.0
7.15% notes due 2037	8.05%	129.2	129.2	129.2
4.50% notes due 2047	4.59%	700.0	700.0	700.0
4.70% notes due 2048	5.42%	460.9	460.9	460.9
Other notes	0.40%	1.8	9.5	11.1
Total long-term debt - face value		$       3,941.9	$     3,949.6	$     3,957.2
Unamortized discounts and debt issuance costs		(67.2)	(69.6)	(70.9)
Total long-term debt - book value		$       3,874.7	$     3,880.0	$     3,886.3
Less current maturities		0.5	5.2	12.2
Total long-term debt - reported value		$       3,874.2	$     3,874.8	$     3,874.1
Estimated fair value of long-term debt		$       3,620.1	$     4,418.5	$     4,442.1

¹ Borrowings on the bank line of credit and commercial paper are classified as short-term if we intend to repay within twelve months and as long-term if we have the intent and ability to extend payment beyond twelve months.

Discounts and debt issuance costs are amortized using the effective interest method over the terms of the respective notes resulting in $5.0 million and $12.6 million of net interest expense for these items for the nine months ended September 30, 2022 and 2021, respectively.

DELAYED DRAW TERM LOAN, LINE OF CREDIT AND COMMERCIAL PAPER PROGRAM

In June 2021, concurrent with the announcement of the pending acquisition of U.S. Concrete (see Note 16 for additional information), we obtained a $2,200.0 million bridge facility commitment from Truist Bank. Later in June 2021, we entered into a $1,600.0 million unsecured delayed draw term loan with a subset of the banks that provide our line of credit and terminated the bridge facility commitment. The delayed draw term loan was drawn in August 2021 for $1,600.0 million upon the acquisition of U.S. Concrete, was paid down to $1,100.0 million in September 2021 and was further paid down to $550.0 million in August 2022 (amounts repaid are no longer available for borrowing). In March 2022, the delayed draw term loan was amended to extend the maturity date from August 2024 to August 2026. The delayed draw term loan contains covenants customary for an unsecured investment-grade facility and mirror those in our line of credit. As of September 30, 2022, we were in compliance with the delayed draw term loan covenants.

Financing costs for the bridge facility commitment and the delayed draw term loan totaled $13.3 million, $9.4 million of which was recognized as interest expense in the second quarter of 2021. Borrowings on the delayed draw term loan bear interest, at our option, at either the Secured Overnight Financing Rate (SOFR) plus a margin ranging from 0.750% to 1.250% or Truist Bank’s base rate (generally, its prime rate) plus a margin ranging from 0.000% to 0.250%. The margins are determined by our credit ratings. As of September 30, 2022, the margin for SOFR borrowings was 0.875%, and the margin for base rate borrowings was 0.000%.

Our unsecured line of credit was amended in August 2022 to increase the amount from $1,000.0 million to $1,600.0 million and extend the maturity date from September 2026 to August 2027. Our line of credit contains covenants customary for an unsecured investment-grade facility. As of September 30, 2022, we were in compliance with the covenants.

Borrowings on the line of credit bear interest, at our option, at either SOFR plus a margin ranging from 1.000% to 1.625% or Truist Bank’s base rate (generally, its prime rate) plus a margin ranging from 0.000% to 0.625%. The margins are determined by our credit ratings. Standby letters of credit, which are issued under the line of credit and reduce availability, are charged a fee equal to the margin for SOFR borrowings plus 0.175%. We also pay a commitment fee on the daily average unused amount of the line of credit that ranges from 0.090% to 0.225% determined by our credit ratings. As of September 30, 2022, the margin for SOFR borrowings was 1.125%, the margin for base rate borrowings was 0.125%, and the commitment fee for the unused amount was 0.100%.

In August 2022, we established a $1,600.0 million commercial paper program and borrowed $550.0 million under the program. Commercial paper borrowings bear interest at rates determined at the time of issuance and as agreed between us and the commercial paper investors.

As of September 30, 2022, our available borrowing capacity under the line of credit was $1,210.0 million. Utilization of the borrowing capacity was as follows:

$312.0 million was borrowed

$78.0 million was used to support standby letters of credit

TERM DEBT

Essentially all of our $3,941.9 million (face value) of term debt (which includes the $550.0 million delayed draw term loan and the $550.0 million commercial paper) is unsecured. $2,840.2 million of such debt is governed by two essentially identical indentures that contain customary investment-grade type covenants. As of September 30, 2022, we were in compliance with all term debt covenants.

In August 2021, we assumed $434.5 million (fair value) of senior notes due 2029 in connection with the acquisition of U.S. Concrete and retired these notes in September 2021.

STANDBY LETTERS OF CREDIT

We provide, in the normal course of business, certain third-party beneficiaries with standby letters of credit to support our obligations to pay or perform according to the requirements of an underlying agreement. Such letters of credit typically have an initial term of one year, typically renew automatically, and can only be modified or canceled with the approval of the beneficiary. Except for $26.1 million of risk management letters of credit that expire in 2023, our standby letters of credit are issued by banks that participate in our $1,600.0 million line of credit and reduce the borrowing capacity thereunder. Our standby letters of credit as of September 30, 2022 are summarized by purpose in the table below:

in millions
Standby Letters of Credit
Risk management insurance	$          96.6
Reclamation/restoration requirements	7.5
Total	$        104.1