Debt

12 Months Ended

Sep. 30, 2020

DEBT

In fiscal year 2020, Air Products issued U.S. Dollar- and Euro-denominated fixed-rate notes in multiple tranches with aggregate principal amounts of $3.8 billion and €1.0 billion ($1.2 billion as of 30 September 2020), respectively. The U.S. Dollar-denominated notes were issued on 30 April 2020, and the Euro-denominated notes were issued on 5 May 2020. The proceeds from these notes were reduced by deferred financing charges and discounts of approximately $45, which are being amortized over the life of the underlying bonds. We intend to use the majority of the proceeds to fund growth projects and repay debt maturities through 2021. In August 2020, we repaid a 2.0% Eurobond of €300.0 million that had been previously reflected as long-term debt due to our intent to refinance as of 30 September 2019.

Total Debt

The table below summarizes our total outstanding debt as reflected on our consolidated balance sheets as of 30 September 2020 and 2019:


30 September	2020	2019
Short-term borrowings(A)	$7.7	$58.2
Current portion of long-term debt(B)(C)	470.0	40.4
Long-term debt	7,132.9	2,907.3
Long-term debt – related party(B)	297.2	320.1
Total Debt	$7,907.8	$3,326.0

(A)Includes bank obligations with weighted average interest rates of 1.6% and 3.7% as of 30 September 2020 and 2019, respectively.

(B)Our related party debt resulted from the 2018 acquisition of gasification and syngas clean-up assets from our joint venture partner, Lu'An, who partially funded the acquisition with a loan to the joint venture.

(C)Includes current portions of long-term debt owed to Lu'An of $41.3 and $37.8 as of 30 September 2020 and 2019, respectively.

Long-term Debt

The coupon interest rates, maturities, and carrying amounts of our long-term debt as of 30 September 2020 and 2019 are summarized in the table below:


30 September	Fiscal Year Maturities	2020	2019
Payable in U.S. Dollars
Debentures
8.75%	2021	$18.4	$18.4
Medium-term Notes (weighted average rate)
Series E 7.6%	2026	17.2	17.2
Senior Notes
Note 3.0%	2022	400.0	400.0
Note 2.75%	2023	400.0	400.0
Note 3.35%	2024	400.0	400.0
Note 1.50%	2026	550.0	—
Note 1.85%	2027	650.0	—
Note 2.05%	2030	900.0	—
Note 2.70%	2040	750.0	—
Note 2.80%	2050	950.0	—
Other (weighted average rate)
Variable-rate industrial revenue bonds 0.1%	2035 to 2050	631.9	631.9


30 September	Fiscal Year Maturities	2020	2019
Payable in Other Currencies
Eurobonds 2.0%	2020	—	327.0
Eurobonds 0.375%	2021	410.3	381.5
Eurobonds 1.0%	2025	351.7	327.0
Eurobonds 0.50%	2028	586.2	—
Eurobonds 0.80%	2032	586.2	—
Other	2023	0.6	3.8
Related Party
Chinese Renminbi 5.5%	2021 to 2027	338.5	357.9
Capital Lease Obligations (weighted average rate)

Foreign 10.9%	2021 to 2036	9.2	10.1
Total Principal Amount		7,950.2	3,274.8
Less: Unamortized discount and debt issuance costs		(55.8)	(12.2)
Less: Fair value hedge accounting adjustments(A)		5.7	5.2
Total Long-term Debt		7,900.1	3,267.8
Less: Current portion of long-term debt		(470.0)	(40.4)
Less: Long-term debt – related party		(297.2)	(320.1)
Long-term Debt		$7,132.9	$2,907.3

(A)We have entered into LIBOR-based interest rate swap arrangements with various counterparty financial institutions on the 3.0% Senior Note maturing in fiscal year 2022. These interest rate swaps have been designated as fair value hedges of the Note. Refer to Note 13, Financial Instruments, for additional information.

Maturities of long-term debt, including principal amounts owed to related parties, in each of the next five years and thereafter are as follows:


2021			$470.4
2022			441.7
2023			456.3
2024			456.4
2025			415.8
Thereafter			5,709.6
Total			$7,950.2

Various debt agreements to which we are a party include financial covenants and other restrictions, including restrictions pertaining to the ability to create property liens and enter into certain sale and leaseback transactions. As of 30 September 2020, we are in compliance with all the financial and other covenants under our debt agreements.

There were no additional commitments maintained by our foreign subsidiaries as of 30 September 2020.

Cash paid for interest, net of amounts capitalized, was $67.2, $155.9, and $123.1 in fiscal years 2020, 2019, and 2018, respectively.

Credit Agreement

We have a $2,300 five-year revolving credit agreement maturing 31 March 2022 with a syndicate of banks (the “Credit Agreement”). Under the Credit Agreement, senior unsecured debt is available to us and certain of our subsidiaries. The Credit Agreement provides us a source of liquidity and supports our commercial paper program. Our only financial covenant under the Credit Agreement is a maximum ratio of total debt to total capitalization, or total debt plus total equity, no greater than 70%. No borrowings were outstanding under the Credit Agreement as of 30 September 2020.