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Debt
3 Months Ended
Dec. 31, 2014
Debt  
Debt

 

8.Debt

 

At December 31, 2014 and September 30, 2014, we had the following unsecured long-term debt outstanding:

 

 

 

December 31,

 

September 30,

 

 

 

2014

 

2014

 

 

 

(in thousands)

 

 

 

 

 

Unsecured senior notes issued July 21, 2009:

 

 

 

 

 

Due July 21, 2015, 6.10%

 

$

40,000 

 

$

40,000 

 

Due July 21, 2016, 6.10%

 

40,000 

 

40,000 

 

 

 

$

80,000 

 

$

80,000 

 

Less long-term debt due within one year

 

40,000 

 

40,000 

 

Long-term debt

 

$

40,000 

 

$

40,000 

 

 

We have $80 million senior unsecured fixed-rate notes outstanding at December 31, 2014 that mature over a period from July 2015 to July 2016.  Interest on the notes is paid semi-annually based on an annual rate of 6.10 percent.  Annual principal repayments of $40 million are due July 2015 and July 2016.  We have complied with our financial covenants which require us to maintain a funded leverage ratio of less than 55 percent and an interest coverage ratio (as defined) of not less than 2.50 to 1.00.

 

We have a $300 million unsecured revolving credit facility that will mature May 25, 2017.  The credit facility has $100 million available to use for letters of credit.  The majority of borrowings under the facility would accrue interest at a spread over the London Interbank Offered Rate (LIBOR).  We also pay a commitment fee based on the unused balance of the facility.  Borrowing spreads as well as commitment fees are determined according to a scale based on a ratio of our total debt to total capitalization.  The spread over LIBOR ranges from 1.125 percent to 1.75 percent per annum and commitment fees range from .15 percent to .35 percent per annum.  Based on our debt to total capitalization on December 31, 2014, the spread over LIBOR and commitment fees would be 1.125 percent and .15 percent, respectively.  Financial covenants in the facility require us to maintain a funded leverage ratio (as defined) of less than 50 percent and an interest coverage ratio (as defined) of not less than 3.00 to 1.00.  The credit facility contains additional terms, conditions, restrictions, and covenants that we believe are usual and customary in unsecured debt arrangements for companies of similar size and credit quality.  At December 31, 2014, we were in compliance with all debt covenants.  As of December 31, 2014, there were no borrowings, but there were three letters of credit outstanding in the amount of $42.2 million.  At December 31, 2014, we had $257.8 million available to borrow under our $300 million unsecured credit facility.

 

At December 31, 2014, we had two letters of credit outstanding, totaling $12 million that were issued to support international operations.  These letters of credit were issued separately from the $300 million credit facility so they do not reduce the available borrowing capacity discussed in the previous paragraph.

 

During the first quarter of fiscal 2015, we borrowed $1.0 million with an interest rate of seven percent against a short-term $9.5 million line of credit in an international location.  The $1.0 million and interest were paid in full subsequent to the end of the quarter.