Long-Term Debt

12 Months Ended

Dec. 31, 2019

Long-term debt, interest rates and due dates at December 31 are as follows:



	2019						2018
	Year-end Interest Rate		Due Date Through	Balance			Year-end Interest Rate		Due Date Through	Balance
Senior Notes ¹	3.4	%	2022	$	300.0		3.4	%	2022	$	300.0
Senior Notes ¹	3.8	%	2024	300.0			3.8	%	2024	300.0
Senior Notes ¹	3.5	%	2027	500.0			3.5	%	2027	500.0
Senior Notes ¹	4.4	%	2029	500.0						—
Term Loan ²	2.9	%	2024	462.5						—
Industrial development bonds, principally variable interest rates	1.6	%	2030	3.8			1.9	%	2030	3.8
Commercial paper ³	2.0	%	2024	61.5			2.6	%	2022	70.0
Finance leases (primarily vehicles)				4.2						4.7
Other, partially secured				.5						.6
Unamortized discounts and deferred loan cost				(14.9		)				(10.1		)
Total debt				2,117.6						1,169.0
Less: current maturities				51.1						1.2
Total long-term debt				$	2,066.5					$	1,167.8

¹ Senior Notes are unsecured and unsubordinated obligations. For each of the Senior Notes: (i) interest is paid semi-annually in arrears; (ii) principal is due at maturity with no sinking fund; and (iii) we may, at our option, at any time, redeem all or a portion of any of the debt at a make-whole redemption price equal to the greater of: (a) 100% of the principal amount of the notes being redeemed; and (b) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a specified discount rate determined by the terms of each respective note. The Senior Notes may also be redeemed by us within 90 days of maturity at 100% of the principal amount plus accrued and unpaid interest, and we are required to offer to purchase such notes at 101% of the principal amount, plus accrued and unpaid interest, if we experience a Change of Control Repurchase Event, as defined in the Senior Notes. Also, each respective Senior Note contains restrictive covenants, including a limitation on secured debt of 15% of our consolidated assets, a limitation on sale and leaseback transactions, and a limitation on certain consolidations, mergers, and sales of assets.

² In January 2019, we issued a $500.0 five-year Tranche A Term Loan with our current bank group. We pay quarterly principal installments of $12.5 through the maturity date of January 2024, at which time we will pay the remaining principal. Additional principal payments, including a complete early payoff, are allowed without penalty. As of December 31, 2019, we had repaid $37.5, as scheduled, on the Tranche A Term Loan. The Tranche A Term Loan bears a variable interest rate as defined in the agreement and was 2.9% at December 31, 2019. Interest is payable based upon a time interval that depends on the selection of interest rate period, and at December 31, 2019, there was no material accrued interest payable on the Tranche A Loan.

³ The weighted average interest rate for the net commercial paper activity during the years ended December 31, 2019 and 2018 was 2.6% and 2.4%, respectively.

Maturities are as follows:



Year ended December 31
2020	$	51.1
2021	51.0
2022	350.2
2023	51.0
2024	621.9
Thereafter	992.4
	$	2,117.6

In January 2019, we increased the size of the revolving facility from $800.0 to $1,200.0 (and increased permitted borrowings, subject to covenant restrictions, under our commercial paper program in a corresponding amount), added a five-year $500.0 term loan facility, and extended the term from 2022 to 2024.

Amounts outstanding at December 31 related to our commercial paper program were:



	2019			2018
Total program authorized	$	1,200.0		$	800.0

Commercial paper outstanding (classified as long-term debt)	(61.5		)	(70.0		)
Letters of credit issued under the credit facility	—			—
Total program usage	(61.5		)	(70.0		)
Total program available	$	1,138.5		$	730.0

At December 31, 2019, subject to restrictive covenants we could raise cash by issuing commercial paper through a program that is backed by a $1,200.0 revolving credit facility with a syndicate of 13 lenders. The credit facility allows us to issue total letters of credit up to $125.0. When we issue letters of credit in this manner, our capacity under the revolving facility, and consequently, our ability to issue commercial paper, is reduced by a corresponding amount. We had no outstanding letters of credit under the facility at year end for the periods presented.

At December 31, 2019, the revolving credit facility and certain other long-term debt obligations contain restrictive covenants, of which we are comfortably in compliance. The covenants currently limit: a) as of the last day of each fiscal quarter, the leverage ratio of consolidated funded indebtedness to consolidated EBITDA (each as defined in the revolving credit facility) for the trailing four fiscal quarters must not exceed 4.25 to 1.00, with a single step-down to 3.50 to 1.00 at March 31, 2020, b) the amount of total secured debt to 15% of our total consolidated assets, and c) our ability to sell, lease, transfer, or dispose of all or substantially all of total consolidated assets.

Generally, we may elect one of four types of borrowing under the revolving credit facility, which determines the rate of interest to be paid on the outstanding principal balance. The interest rate would typically be commensurate with the currency borrowed and the term of the borrowing, as well as either (i) a competitive variable or fixed rate, or (ii) various published rates plus a pre-defined spread.

We are required to periodically pay accrued interest on any outstanding principal balance under the revolving credit facility at different time intervals based upon the elected interest rate and the elected interest period. Any outstanding principal under this facility will be due upon the maturity date. We may also terminate or reduce the lending commitments under this facility, in whole or in part, upon three business days’ notice.