Long-Term Debt and Finance Leases

6 Months Ended

Jun. 30, 2019

Note 8. Long‑Term Debt and Finance Leases

The following table summarizes the Company’s long‑term debt and finance leases:


							December 31,
	June 30, 2019						2018
	Available
	borrowing		Effective		Outstanding		Outstanding
	capacity		interest rate (1)		balance		balance
	(in millions)
Long-term debt:
Term B Loans, net(2)	$	—	5.84	%	$	2,230.6	$	2,240.9
Revolving Credit Facility(3)		229.5	5.40	%		65.0		60.0
Total long-term debt	$	229.5				2,295.6		2,300.9
Finance lease obligations						12.1		5.1
Total long-term debt and finance lease obligations						2,307.7		2,306.0
Debt issuance costs, net(4)						(9.3)		(10.5)
Sub-total						2,298.4		2,295.5
Less current portion						(26.9)		(24.1)
Long-term portion					$	2,271.5	$	2,271.4

(1)

Represents the effective interest rate in effect for all borrowings outstanding as of June 30, 2019 pursuant to each debt instrument including the applicable margin.

(2)

At June 30, 2019 includes $9.5 million of net discounts.

(3)

Available borrowing capacity at June 30, 2019 represents $300.0 million of total availability less borrowing of $65.0 million on the Revolving Credit Facility and outstanding letters of credit of $5.5 million. Letters of credit are used in the ordinary course of business and are released when the respective contractual obligations have been fulfilled by the Company.

(4)

At June 30, 2019, debt issuance costs include $6.9 million related to Term B Loans and $2.4 million related to the Revolving Credit Facility.

Refinancing of the Term B Loans and Revolving Credit Facility

On July 17, 2017, the Company entered into an eighth amendment (“Eighth Amendment”) to its Credit Agreement, with JPMorgan Chase Bank, N.A., as the administrative agent and revolver agent. Under the Eighth Amendment, (i) the Company borrowed new Term B loans in an aggregate principal amount of $230.5 million, for a total outstanding Term B loan principal amount of $2.28 billion and (ii) the revolving credit commitments were increased by an aggregate principal amount of $100.0 million, for a total outstanding revolving credit commitment of $300.0 million available to the Company under the revolving credit facility. The new Term B loans will mature on August 19, 2023 and bear interest, at the Company’s option, at a rate equal to ABR plus 2.25% or LIBOR plus 3.25%. Loans under the revolving credit facility will mature on May 31, 2022 and bear interest, at the Company's option, at a rate equal to ABR plus 2.00% or LIBOR plus 3.00%. The guarantees, collateral and covenants in the Eighth Amendment remain unchanged from those contained in the credit agreement prior to the Eighth Amendment. As of June 30, 2019, the Company was in compliance with all debt covenants.

On May 31, 2017, the Company entered into a seventh amendment (“Seventh Amendment”) to its Credit Agreement. The Seventh Amendment (i) refinanced the then-existing $200.0 million of borrowings available to the Company under the revolving credit facility and (ii) extended the maturity date of the revolving credit facility to May 31, 2022, unless an earlier date was triggered under certain circumstances. The interest rate margins applicable to the revolving credit facility bore interest at a rate equal to ABR plus 2.00% or LIBOR plus 3.00%. Additionally, the Company entered into an Incremental Commitment Letter to its revolving credit facility that increased the available borrowings to $300.0 million that became available upon compliance by the Company with certain conditions (which included redemption of the then existing 10.25% senior notes subsequently achieved as a result of the Eighth Amendment). The guarantees, collateral and covenants in the Seventh Amendment remained unchanged from those contained in the credit agreement prior to the Seventh Amendment.