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Credit Facility
9 Months Ended
Sep. 30, 2012
Credit Facility

Note E—Credit Facility

On September 11, 2012, the Company entered into a multi-currency Syndicated Facility Agreement (the “Syndicated Facility”) with a syndicate of banks. The Syndicated Facility replaces the $350.0 million unsecured revolving line of credit dated December 18, 2007 that was scheduled to mature in December 2012. The Syndicated Facility is for $850.0 million and expires September 11, 2017. The Syndicated Facility contains an option to increase the borrowing capacity by an additional $350.0 million, as well as an option by the Company to decrease the borrowing capacity or terminate the Syndicated Facility with appropriate notice. The interest rate on borrowing under the Syndicated Facility is based on LIBOR plus a margin. The margin is based on the Company’s leverage ratio as defined in the Syndicated Facility and the initial margin is 0.75%. The Syndicated Facility contains customary covenants, representations and warranties that are standard for this type of credit facility. The Company is required to comply with a financial covenant with respect to a maximum leverage ratio. In addition, the Syndicated Facility contains customary default provisions including, but not limited to, failure to pay principal or interest when due, failure to comply with covenants, or a change in control. At September 30, 2012, no amounts were outstanding under the Syndicated Facility and the Company was in compliance with all covenants thereunder.