8.	Senior debt

Debt consisted of the following at June 30, 2017 and December 31, 2016:

(Table only in thousands)	June 30, 2017			December 31, 2016
Outstanding borrowings under Credit Facility (defined below). Term loan payable in quarterly principal installments of $1.5 million through September 2017, $2.0 million through September 2018, and $2.5 million thereafter with balance due upon maturity in September 2020.
- Term loan	$	117,415		$	125,072
- Unamortized debt discount and debt issuance costs		(2,841	)		(3,175	)
Total outstanding borrowings under Credit Facility		114,574			121,897
Outstanding borrowings (U.S. dollar equivalent) under China Facility (defined below)		—			1,296
Outstanding borrowings (U.S. dollar equivalent) under Aarding Facility (defined below)		213			—
Total outstanding borrowings		114,787			123,193
Less: current portion		7,742			8,827
Total debt, less current portion	$	107,045		$	114,366

During the three-month and six-month periods ended June 30, 2017, the Company made prepayments of $2.0 million and $4.3 million, respectively, on the outstanding balance of the term loan. These prepayments were applied to future principal payments due under the term loan. Scheduled principal payments under our Credit Facility is $3.5 million for the remainder of 2017, $8.5 million in 2018, $10.0 million in 2019, and $95.3 million in 2020.

United States Debt

As of June 30, 2017 and December 31, 2016, $20.7 million and $18.0 million of letters of credit were outstanding, respectively. Total unused credit availability under the Company’s senior secured term loan, senior secured U.S. dollar revolving loans with sub-facilities for letters of credit and swing-line loans and senior secured multi-currency revolving credit facility for U.S. dollar and specific foreign currency loans (collectively, the “Credit Facility”) was $59.3 million and $62.0 million at June 30, 2017 and December 31, 2016, respectively. Revolving loans may be borrowed, repaid and reborrowed until September 3, 2020, at which time all amounts borrowed pursuant to the Credit Facility must be repaid.

The weighted average interest rate on outstanding borrowings was 3.47% and 3.26% at June 30, 2017 and December 31, 2016, respectively.

In accordance with the Credit Facility terms, the Company entered into an interest rate swap on December 30, 2015 to hedge against interest rate exposure related to approximately one-third of the outstanding debt indexed to LIBOR market rates. The fair value of the interest rate swap had no impact on the Condensed Consolidated Balance Sheet as of June 30, 2017. The fair value of the interest rate swap was a liability totaling $0.2 million at December 31, 2016, which is recorded in “Accounts payable and accrued expenses” on the Condensed Consolidated Balance Sheets. The Company did not designate the interest rate swap as an effective hedge until the first quarter of 2016, and accordingly the change in the fair value until the date of designation of $0.5 million was recorded in earnings in “Other income (expense), net” in the Condensed Consolidated Statements of Income for the six-month period ended June 30, 2016. From the date of designation, a significant portion of the changes to the fair value of the interest rate swap have been recorded in other comprehensive income (loss) as the hedge is deemed effective.

The Company amended the Credit Agreement as of June 9, 2017. The Credit Agreement was amended to, among other things, (a) modify the calculation of Consolidated EBITDA and Consolidated Fixed Charges to exclude certain pro forma adjustments related to certain acquisitions and other transactions and (b) modify the Consolidated Leverage Ratio covenant. As a result of the amendment to the Credit Agreement, the maximum consolidated leverage ratio remains consistent at 3.25 until March 31, 2019, when it is set to decrease to 3.00 until the end of the term of the Credit Agreement.

As of June 30, 2017 and December 31, 2016, the Company was in compliance with all related financial and other restrictive covenants under the Credit Agreement.

Foreign Debt

A subsidiary of the Company located in the Netherlands has a Euro denominated facilities agreement with ING Bank N.V. (“Aarding Facility”) with a total borrowing capacity of $14.9 million. As of June 30, 2017 and December 31, 2016, the borrowers were in compliance with all related financial and other restrictive covenants. As of June 30, 2017, $4.7 million of the bank guarantee and $0.2 million of the overdraft facility are being used by the Company. As of December 31, 2016, $5.3 million of the bank guarantee and none of the overdraft facility was being used by the Company. There is no stated expiration date on the Aarding Facility.

A subsidiary of the Company located in China has a Chinese Yuan Renminbi denominated short-term loan with Bank of America (“China Facility”) with an amount outstanding of $1.3 million as of December 31, 2016 at an interest rate of 4.79%. This loan was paid down in full in the second quarter of 2017. The total amount of available for borrowing under the China Facility was $4.4 million and $4.3 million as of June 30, 2017 and December 31, 2016, respectively.

As a result of the PMFG, Inc. (“PMFG”) acquisition, the Company acquired a 60% equity investment in Peerless Propulsys that entitled the Company to 80% of Peerless Propulsys’s earnings. In prior periods, the noncontrolling interest of Peerless Propulsys was reported as a separate component on the Consolidated Balance Sheets. During July 2016, the Company entered into an agreement with the noncontrolling owner of Peerless Propulsys and issued a promissory note in the amount of $5.3 million due on July 11, 2019 in exchange for the remaining interest in Peerless Propulysys, which increased the Company’s ownership to 100% in the equity and earnings of Peerless Propulsys. The interest rate on the note payable is 1.50%, which approximates the market rate given the short-term duration of the note payable. The note payable is guaranteed by the Company. As of December 31, 2016 and June 30, 2017, $5.3 million of the principal amount of the note payable was outstanding. The note is payable at the earlier of July 11, 2019 or 30 days subsequent to the sale of building and land that the Company owns in China. As the Company intends to sell this building and land within one year of June 30, 2017, this note payable is currently classified as a current liability in the Consolidated Balance Sheets as of June 30, 2017.