Note 5 - Debt

(In millions)	December 31, 2013		December 31, 2012
Foreign operation’s working capital line of credit	$	3.0	$	4.8
Current maturities of capital lease and other obligations	—		1.8
Current maturities of term loan	—		10.0
Short-term borrowings and current maturities of long-term debt	3.0		16.6

Senior secured credit facility —revolving loan due 2018	292.0		—
Senior secured credit facility —term loan due 2015	—		75.0
Senior secured credit facility — revolving loan due 2015	—		165.0
Long-term debt	292.0		240.0
Total debt	$	295.0	$	256.6

Estimated Fair Values of Notes Payable

We did not have any notes payable outstanding at December 31, 2013.

Senior Secured Credit Facility

In June 2013 we entered into a new $600 million senior secured revolving credit facility which matures in June 2018. The new facility replaces the Company’s previous senior secured credit facility ($82.5 million term loan and a $360 million revolving loan) that would have expired in July 2015. At the current leverage ratio the new rate is LIBOR + 1.25% or 75 basis points lower than the prior facility. In addition to the lower interest rates and fees on undrawn balances, the new facility provides greater flexibility. The proceeds from the new facility were used to repay all amounts, and terminate all commitments outstanding under the Company’s credit agreement and to pay fees and expenses in connection with the refinancing. As a result of the refinancing, the Company accelerated certain unamortized financing costs of the credit facility being replaced and the deferred expense on related interest rate swaps incurring a pretax charge of $1.0 million in the second quarter of 2013.

The new facility contains financial and other covenants, including, but not limited to, restrictions on the incurrence of debt and the granting of liens, as well as the maintenance of an interest coverage ratio and a leverage ratio. In accordance with the terms of the new facility, we are required to maintain a minimum interest coverage ratio of 3.50 (based on the ratio of EBITDA, as defined in the credit agreement, to interest expense) and may not exceed a maximum leverage ratio of 3.50 (based on the ratio of total debt to EBITDA) throughout the term of the new facility. In addition, the new facility contains other terms and conditions such as customary representations and warranties, additional covenants and customary events of default.

Additionally, at December 31, 2013 we have interest rate swaps totaling approximately $150 million that expire before September 2016. These interest rate swaps are designated as cash flow hedges to our term loan. The interest rate swaps trade LIBOR for a fixed rate at an average rate of 0.81567%.

6.75% Senior Subordinated Notes, due 2015

On February 1, 2005, we issued $225 million of 6.75% senior subordinated notes due 2015. The notes were unsecured senior subordinated obligations of Hexcel Corporation. Interest accrued at the rate of 6.75% per annum and were payable semi-annually in arrears on February 1 and August 1.

In June 2012 and February 2011, we redeemed $73.5 million and $150 million of these notes at a call premium of 1.125% and 2.25%, respectively, and purchased $1.5 million of notes on the open market. The redemptions were primarily funded by a $75 million and $135 million add-on to the Facility in 2012 and December 2010. As a result of the redemptions, we accelerated the unamortized financing costs of the senior subordinated notes being redeemed and expensed the call premium incurring a pretax charge of $1.1 million (after tax of $0.01 per diluted share) and $4.9 million (after tax of $0.03 per diluted share) in 2012 and 2011, respectively.

Other Credit Facility

We have a $10.0 million borrowing facility for working capital needs of our Chinese entity with an outstanding balance of $3.0 million on December 31, 2013. The facility contains a $10.0 million revolving credit line. These funds can only be used locally, and accordingly, we do not include this facility in our borrowing capacity disclosures. The facility is guaranteed by Hexcel Corporation, but is uncommitted and cancellable by the lender at any time.

Aggregate Maturities of Debt

The table below reflects aggregate scheduled maturities of debt as of December 31, 2013.

Payable during the years ending December 31:	(In millions)
2014	$	3.0
2015	—
2016	—
2017	—
2018	292.0
Total debt	$	295.0