NOTE 4. FINANCING AGREEMENTS

Total debt consists of the following:

	Years Ended September 30
	2012		2011
Outstanding finance credit lines	$	0.2	$	7.8
Revolving credit facility		105.0		45.0
Term loan current portion		10.0		-
Term loan long-term portion		187.5		-
Unsecured 8.50% debentures due on December 1, 2011		-		47.5
Unsecured 7.00% debentures due on February 15, 2024		19.6		19.7
Unsecured 6.75% debentures due on December 15, 2027		29.8		29.8
Other		0.6		1.3
Total debt		352.7		151.1
Less current portion of debt		115.2		100.3
Total long-term debt	$	237.5	$	50.8

The following table summarizes the scheduled maturities of long-term debt for fiscal years 2013 through 2017:

	Term Loan
2013		10.0
2014		11.3
2015		16.2
2016		20.0
2017		140.0

We have trade finance credit lines and uncommitted letter of credit facilities. These lines are associated with the normal course of business and are not currently, nor have they historically, been of material size to the overall business.

Unsecured debentures outstanding at September 30, 2012 have fixed rates of interest. We have deferred gains included in the amounts above from the termination of previous interest rate swap agreements, and those deferred gains amounted to less than $1 million at both September 30, 2012 and September 30, 2011. The deferred gains on the termination of the swaps are being amortized and recognized as a reduction of interest expense over the remaining term of the related debt through 2025, and as a result, the effective interest rates on that debt have been and will continue to be lower than the stated interest rates on the debt.

During the fourth quarter of fiscal 2012, we entered into a new credit facility. The new credit facility provides for revolving loans of up to $500.0 million, plus term loans in the aggregate amount of $200.0 million. It is to be used for general corporate purposes, including financing permitted acquisitions. The Company may request to increase the revolving loan commitment and the amount of the term loans by up to an additional $250.0 million. All amounts due under the new credit facility mature upon expiration on August 24, 2017. The term loans will amortize so that 37.5 percent of the principal will be repaid over the five year term, with the balance due at maturity. The new credit facility replaces in its entirety our previous $500.0 million credit agreement dated March 28, 2008, as amended, which was scheduled to expire in March 2013. Borrowings under the credit facility and term loan bear interest at variable rates specified therein, that for fiscal 2012 were under 2.0 percent, and the availability of borrowings is subject to our ability at the time of borrowing to meet certain specified conditions, including compliance with covenants contained in the credit agreement governing the facility. The credit facility contains covenants that, among other matters, require us to maintain a ratio of consolidated indebtedness to consolidated EBITDA (each as defined in the credit agreement) of not more than 3.5:1.0 and a ratio of consolidated EBITDA to interest expense of not less than 3.5:1.0. The proceeds of the five-year facility shall be used, as needed: (i) for working capital, capital expenditures, and other lawful corporate purposes; and (ii) to finance acquisitions.

As of September 30, 2012, we had outstanding borrowings of $105.0 million and undrawn letters of credit of $5.8 million under the $500.0 million five-year facility, leaving $389.2 million of borrowing capacity available under the facility. The outstanding balance on the term loan was $197.5 million at September 30, 2012, of which $10.0 million is recognized as the current portion of the balance due.

The fair value of our debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities. The book values of our short-term debt instruments approximate fair value. The estimated fair values of our long-term unsecured debentures were $56.2 million and $52.6 million at September 30, 2012 and 2011, and were based on observable inputs such as quoted prices in markets that are not active. The estimated fair value of our term loan was $197.5 million based on quoted prices for similar liabilities at September 30, 2012, and was entered into during the fourth quarter of fiscal 2012 at current market rates. The fair value measurements for both our long-term unsecured debentures and our term loan were classified as Level 2, as described in Note 5.