Debt

6 Months Ended

Jun. 30, 2020

On June 27, 2019, the Company amended its revolving credit facility ("Credit Facility") with a consortium of several banks to provide 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"), while the remaining $500,000 was allocated to the Credit Facility. The Term Loan A funds were drawn in December 2019 and used primarily to pay for the unsecured notes which matured at that time. The Credit Facility also includes a $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 Secured Net Leverage Ratio is less than 1.75x). 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 Term Loan A variable-rate borrowings. See Note 8 - Fair Value Measurement for further information.

The Company has an accounts receivable securitization facility that 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 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.

At June 30, 2020, $169,000 of the available Credit Facility and $70,000 of the accounts receivable securitization facility were drawn to provide funds for working capital and general corporate purposes. The Company had no borrowings under the revolving credit facility or the accounts receivable securitization facility at December 31, 2019. Amounts used to secure letters of credit totaled $21,490 at June 30, 2020 and $21,651 at December 31, 2019. 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 June 30, 2020, was $337,610.

The Company’s consolidated operations in Asia have renewable unsecured credit lines that provide up to $62,682 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 $56,937 at June 30, 2020.

On May 15, 2020, the Company entered into equipment financing arrangements in the amount of $31,142. The equipment financings, which are wholly-secured by manufacturing equipment within the Company's U.S. operations, are due in equal monthly installments through maturity in 2025. The equipment financing includes interest at 3.05 percent and contain no significant financial covenants.

The following is a summary of the Company's debt and finance leases as of June 30, 2020 and December 31, 2019.



		Principal Balance				Weighted Average Interest Rate	Principal Balance				Weighted Average Interest Rate
		Current		Long-Term		Weighted Average Interest Rate	Current		Long-Term		Weighted Average Interest Rate
	Maturity Date	June 30, 2020					December 31, 2019
Secured revolver	June, 2024	$	169,000	$	—	2.055%	$	—	$	—	n/a
AR securitization	February, 2021	70,000		—		1.087%	—		—		n/a
Asia short term notes	Various maturities	5,745		—		4.063%	12,296		—		4.701%
		244,745		—			12,296		$	—

Term loan A	June, 2024	10,000		182,500		2.055%	10,000		187,500		3.300%
Unsecured notes	March, 2027	—		116,880		7.625%	—		116,880		7.625%
Equipment financing	May, 2025	5,957		24,697		3.050%	—		—		n/a
Finance leases and other	Various maturities	5,739		1,650		1.696%	265		5,998		2.613%
		21,696		325,727			10,265		310,378

Less, Unamortized debt issuance costs		—		1,117			—		1,230
		$	266,441	$	324,610		$	22,561	$	309,148



	Additional Credit Capacity
Secured revolver	$	331,000
AR securitization	80,000
Asia short term notes	56,937
	467,937
Less, amounts used to secure letters of credit and other unavailable funds	73,390
	$	394,547

The Company’s revolving credit facilities contain restrictive covenants which limit or preclude certain actions based upon the measurement of certain financial covenant metrics. However, the covenants are structured such that the Company expects to have sufficient flexibility to conduct its operations. The Company was in compliance with all of its debt covenants as of June 30, 2020.