Note 5 - Debt

	December 31,				December 31,
(In millions)	2017				2016
Current portion of capital lease	$		—		$	0.5
Current portion of Euro term loan		4.3				3.8
Current portion of debt		4.3				4.3

Senior unsecured credit facility — due 2021			50.0				365.0
Euro term loan		63.3				22.6
4.7% senior notes — due 2025			300.0				300.0
3.95% senior notes — due 2027			400.0				—
Senior notes – original issue discount			(2.3	)			(0.7	)
Senior notes – deferred financing costs			(5.5	)			(2.5	)
Other debt			0.1				—
Long-term debt			805.6				684.4
Total debt	$	809.9			$	688.7

3.95% Senior Notes

In February 2017, the Company issued $400 million in aggregate principal amount of 3.95% Senior Unsecured Notes due in 2027. 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 5.95%. The net proceeds of approximately $394.6 million were initially used to repay, in part, $350 million of our Senior Unsecured Revolving Credit Facility (the “Facility”) and the remainder was used for general purposes including share repurchases. The effective interest rate for 2017 was 3.87% inclusive of approximately a 0.25% benefit of treasury locks. The fair value of the senior notes due in 2027 based on quoted prices utilizing Level 2 inputs was $410.0 million at December 31, 2017.

Senior Unsecured Credit Facility

In June 2016, the Company amended and extended its $700 million 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, 2017 is LIBOR + 1.25%. The interest rate ranges from LIBOR + 0.875% to a maximum of LIBOR + 1.875%, depending upon the Company’s leverage ratio.

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.

As of December 31, 2017, total borrowings under our $700 million Facility were $50.0 million, which approximates fair value using Level 2 inputs. 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, 2017, there were no outstanding letters of credit under the Facility, resulting in undrawn availability under the Facility as of December 31, 2017 of $650.0 million. During 2017, the Company utilized its Facility at various borrowing levels with $451 million representing the largest amount outstanding during the year. The weighted average interest rate for the revolver was 2.42% during 2017.

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, 2017 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 2017 was 4.84%. The fair value of the senior notes based on quoted prices utilizing level 2 inputs was $321.0 million at December 31, 2017. The balance for unamortized deferred financing costs and debt discount related to the senior notes was $2.8 million at December 31, 2017 and $3.2 million at December 31, 2016.

Other Credit Facilities

In June 2016, we also entered into a $67.4 million European 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, that began on June 30, 2017 and beginning on June 30, 2019, respectively. We had $67.6 million outstanding under this loan at December 31, 2017, which approximates fair value using level 2 inputs under the market approach. The facility is guaranteed by Hexcel Corporation. Required scheduled payments are required through maturity. Required payments for the next five years and thereafter are as follows: $4.3 million for 2018, $9.5 million for 2019 through 2022, and $25.3 million thereafter.

We have a $10.0 million revolving credit line for working capital needs of our Chinese entity with no outstanding balance at December 31, 2017. 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.