Note 5 - Debt

(In millions)	December 31, 2016			December 31, 2015
Current portion of capital lease	$	0.5		$	—
Current portion of Euro term loan		3.8			—
Current portion of debt		4.3			—

Senior unsecured credit facility — due 2021		365.0			280.0
Euro term loan		22.6			—
4.7% senior notes — due 2025		300.0			300.0
Senior notes – original issue discount		(0.7	)		(0.8	)
Senior notes – deferred financing costs		(2.5	)		(2.7	)
Long-term debt		684.4			576.5
Total debt	$	688.7		$	576.5

Senior Credit Facility

In June 2016, the Company amended and extended its $700 million senior unsecured credit facility (“the Facility”). The maturity of the Facility was extended from September 2019 to June 2021. The amendment provided for a modest reduction in interest costs, as well as less restrictive covenants. The interest rate for the revolver at December 31, 2016 is LIBOR + 1.125%. The interest rate ranges from LIBOR + 0.875% to a maximum of LIBOR + 1.875%, depending upon the Company’s leverage ratio. At December 31, 2016 total borrowings under the Facility were $365 million, which approximates fair value using level 2 inputs under the market approach. During 2016, the Company utilized its Facility at various borrowing levels with $524 million representing the highest amount borrowed within the year. The Facility permits us to issue letters of credit up to an aggregate amount of $40 million. Outstanding letters of credit reduce the amount available for borrowing under our revolving loan. As of December 31, 2016, we had issued letters of credit under the Facility totaling $2.1 million, resulting in undrawn availability under the Facility as of December 31, 2016 of $332.9 million.

The 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 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 Facility. In addition, the Facility contains other terms and conditions such as customary representations and warranties, additional covenants and customary events of default.

In 2014, we entered into the original $700 million Facility which was scheduled to mature in September 2019. The Facility replaced the Company’s previous senior secured credit facility (a $600 million revolving loan). As a result of the refinancing, the Company accelerated certain unamortized financing costs of the credit facility being replaced incurring a pretax charge of $0.5 million in the third quarter of 2014. At December 31, 2015, the outstanding borrowings of $280 million from the Facility approximates fair value using level 2 inputs under the market approach.

4.7% Senior Notes

In 2015, the Company issued $300 million in aggregate principal amount of 4.7% Senior Unsecured Notes due in 2025. The interest rate on these senior notes may be increased by 0.25% each time a credit rating applicable to the notes is downgraded. The maximum rate is 6.7% and the rate at December 31, 2016 remained at 4.7%. The net proceeds of approximately $296.4 million were initially used to repay, in part, our Facility. The conditions and covenants related to the senior notes are less restrictive than those of our Facility. The effective interest rate for 2016 was 4.76%. The fair value of the senior notes based on quoted prices utilizing level 2 inputs was $307.9 million at December 31, 2016. The balance for unamortized deferred financing costs and debt discount related to the senior notes was $3.2 million at December 31, 2016 and $3.5 million at December 31, 2015.

Other Credit Facilities

In June 2016 we also entered into a €60 million ($67.4 million) term loan. The loan has two tranches of which the first tranche for €25 million has a six-month availability period at a rate of Euribor +1.2% and a final maturity date of June 30, 2023. The second tranche for €35 million has a one-year availability period at a rate of Euribor +1.25% and a final maturity date of June 30, 2024. There is a zero percent floor on the Euribor. The loans are payable in annual installments, beginning on June 30, 2017 and June 30, 2019, respectively. We had $26.3 million (€25 million) outstanding under this loan at December 31, 2016, which approximates fair value using level 2 inputs under the market approach. The facility is guaranteed by Hexcel Corporation.

We have a $10.0 million revolving credit line for working capital needs of our Chinese entity with no outstanding balance at December 31, 2016. These funds can only be used locally. The facility is guaranteed by Hexcel Corporation, but is uncommitted and cancellable by the lender at any time.

Aggregate Maturities of Debt

We have $365 million of debt maturing in 2021 and another $300 million of debt maturing in 2025. The Euro term loan is repayable in seven equal installments of $3.76 million each June 30 beginning June 30, 2017 with a final maturity on June 30, 2023.