Debt

12 Months Ended

Dec. 31, 2019

On February 15, 2018, the Company amended its revolving credit facility ("Credit Facility") with a consortium of banks that provided up to $400,000 based on available collateral, including an $110,000 letter of credit subfacility, set to expire in February 2023. As of June 27, 2019, the Company amended this Credit Facility with a consortium of several banks that provides up to $700,000 and is set to expire in June 2024. Of this amended borrowing capacity, $200,000 was allocated to a Delayed Draw Term Loan A ("Term Loan A"), which was drawn in December 2019, while the remaining $500,000 was allocated to the Credit Facility to provide working capital and funds for general corporate purposes. The Term Loan A funds were used primarily to pay for the unsecured notes which matured at that time. The Credit Facility still includes the $110,000 letter of credit sub-facility. The Company may elect, with lender consent, to increase the commitments under the Credit Facility or incur one or more tranches of term loans in an aggregate amount of up to $300,000 (or an unlimited increase if the Proforma Net Secured Leverage Ratio is less than 1.75x). Debt issuance costs related to the Credit Facility amendment totaled $1,507 while those related to the Term Loan A totaled $700, for a combined $2,207 in debt issuance costs. These costs, along with the remaining debt issuance costs from the February 2018 credit facility amendment, will be amortized over the life of the underlying debt instruments and are included in the Other assets classification in the Consolidated Balance Sheets. The Company may elect to add certain foreign subsidiaries as additional borrowers under the Credit Facility, subject to the satisfaction of certain conditions.

On July 11, 2019, the Company entered into forward-starting interest rate swaps to effectively hedge the cash flow exposure associated with the Company's forthcoming Term Loan A variable-rate borrowings. See Note 9 Fair Value Measurement for further information.

The Company's accounts receivable securitization facility provides up to $150,000 based on available collateral and expires in February 2021. Pursuant to the terms of the facility, the Company is permitted to sell certain of its domestic trade receivables on a continuous basis to its wholly-owned, bankruptcy-remote subsidiary, Cooper Receivables LLC (“CRLLC”). In turn, CRLLC may sell from time to time an undivided ownership interest in the purchased trade receivables, without recourse, to a PNC Bank administered, asset-backed commercial paper conduit. The accounts receivable securitization facility has no significant financial covenants until available credit is less than specified amounts.

The Company had no borrowings under the revolving credit facility or the accounts receivable securitization facility at December 31, 2019 or December 31, 2018, other than amounts used to secure letters of credit. Amounts used to secure letters of credit totaled $21,651 at December 31, 2019 and $16,800 at December 31, 2018. The Company’s additional borrowing capacity, net of borrowings and amounts used to back letters of credit, and based on eligible collateral through use of its credit facility with its bank group and its accounts receivable securitization facility at December 31, 2019, was $601,649.

The Company’s consolidated operations in Asia have renewable unsecured credit lines that provide up to $46,426 of borrowings and do not contain financial covenants. The additional borrowing capacity on the Asian credit lines, based on eligible collateral and the short-term notes payable, totaled $34,130 at December 31, 2019.

In 2010 and 2017, Industrial Revenue Bonds (IRBs) were issued by the City of Texarkana to finance the design, equipping and construction of expansions, as well as the on-going operations of the Texarkana manufacturing facility, in return for real estate and equipment located at the Company’s Texarkana tire manufacturing plant. The assets related to the expansion and on-going plant operations provide security for the bonds issued by the City of Texarkana. As a result, the City retains title to the assets and, in turn, provides a 100 percent property tax exemption to the Company. However, the Company has recorded the property in its Consolidated Balance Sheets, along with a capital lease obligation to repay the proceeds of the IRBs, because the arrangements are cancelable at any time at the Company’s request. The Company has also purchased the IRBs and therefore is the bondholder, as well as the borrower/lessee of the property purchased with the IRB proceeds. The capital lease obligations and IRB assets are recorded net in the Consolidated Balance Sheets. At December 31, 2019 and 2018, the assets and liabilities associated with these City of Texarkana IRBs were $72,080 and $35,000, respectively.

The following table summarizes the long-term debt and finance leases of the Company at December 31, 2019 and December 31, 2018.



	December 31, 2019		December 31, 2018
Parent company
3.3% Term Loan A due June 2024	$	197,500	$	—
8% Unsecured Notes due December 2019	—		173,578
7.625% Unsecured Notes due March 2027	116,880		116,880
Finance leases and other	6,263		6,245
	320,643		296,703
Less: unamortized debt issuance costs	1,230		659
	319,413		296,044
Less: current maturities	10,265		174,760
	$	309,148	$	121,284

Over the next five years, the Company has payments related to the above debt of:



	Future Debt Payments
2020	$	10,000
2021	17,563
2022	15,000
2023	17,500
2024	142,500

Interest paid on debt during 2019, 2018 and 2017 was $33,161, $34,070 and $34,085, respectively. The amount of interest capitalized was $2,233, $2,663 and $2,706 during 2019, 2018 and 2017, respectively.

In addition, at December 31, 2019 and December 31, 2018, the Company had short-term notes payable of $12,296 and $15,288, respectively, due within twelve months, consisting of funds borrowed by the Company’s operations in the PRC. The weighted average interest rate of the short-term notes payable at December 31, 2019 and December 31, 2018 was 4.70 percent and 4.82 percent, respectively.