Debt

Debt and the average interest rates on debt outstanding were as follows:



In millions	Average interest rate at June 28, 2014	Maturity Year	June 28, 2014			December 31, 2013
Commercial paper	0.504%	2017	$	701.2		$	528.9
Revolving credit facilities	1.402%	2017	26.5			—
Senior notes - fixed rate	1.350%	2015	350.0			350.0
Senior notes - fixed rate	1.875%	2017	350.0			350.0
Senior notes - fixed rate	2.650%	2019	250.0			250.0
Senior notes - fixed rate	5.000%	2021	500.0			500.0
Senior notes - fixed rate	3.150%	2022	550.0			550.0
Other	0.918%	2014-2030	8.7			4.7
Capital lease obligations	6.390%	2014-2015	8.7			21.5
Total debt			2,745.1			2,555.1
Less: Current maturities and short-term borrowings			(6.1		)	(2.5		)
Long-term debt			$	2,739.0		$	2,552.6

The 1.35% Senior Notes due 2015, 1.875% Senior Notes due 2017, 2.65% Senior Notes due 2019, 3.15% Senior Notes due 2022 and $373.0 million of the 5.00% Senior Notes due 2021 (collectively, the “Notes”) were all issued in transactions exempt from the registration requirements of the Securities Act of 1933, as amended. In March 2013, Pentair Ltd. and our 100 percent-owned subsidiary, Pentair Finance S.A. (“PFSA”), filed a Registration Statement with the SEC offering to exchange the Notes for new, registered Notes. The exchange offer expired on April 19, 2013 and did not impact the aggregate principle amount or the terms of the Notes outstanding. Effective upon the Redomicile, the Notes are guaranteed as to payment by Pentair plc and Pentair Investments Switzerland GmbH, a 100-percent owned subsidiary of Pentair plc and the 100-percent owner of PFSA. Prior to the Redomicile, the registered Notes were guaranteed as to payment by Pentair Ltd.

In September 2012, Pentair, Inc. entered into a credit agreement providing for an unsecured, committed revolving credit facility (the “Credit Facility”) with initial maximum aggregate availability of up to $1,450.0 million. Upon the completion of the Merger, Pentair Ltd. became the guarantor under the Credit Facility and PFSA and certain other of our subsidiaries became affiliate borrowers under the Credit Facility. Effective upon the Redomicile, Pentair plc and Pentair Investments Switzerland GmbH became the guarantors under the Credit Facility. Borrowings under the Credit Facility generally bear interest at a variable rate equal to the London Interbank Offered Rate plus a specified margin based upon PFSA's credit ratings. PFSA must also pay a facility fee ranging from 10.0 to 30.0 basis points per annum (based upon PFSA's credit ratings) on the amount of each lender's commitment. PFSA is authorized to sell short-term commercial paper notes to the extent availability exists under the Credit Facility. PFSA uses the Credit Facility as back-up liquidity to support 100% of our outstanding commercial paper. As of June 28, 2014 and December 31, 2013, we had $701.2 million and $528.9 million, respectively, of commercial paper outstanding, all of which was classified as long-term as we have the intent and the ability to refinance such obligations on a long-term basis under the Credit Facility.

Total availability under the Credit Facility was $722.3 million as of June 28, 2014, which was not limited by any covenants contained in the Credit Facility’s credit agreement.

Our debt agreements contain certain financial covenants, the most restrictive of which are in the Credit Facility, including that we may not permit (i) the ratio of our consolidated debt plus synthetic lease obligations to our consolidated net income (excluding, among other things, non-cash gains and losses) before interest, taxes, depreciation, amortization, non-cash share-based compensation expense, and up to $40.0 million of costs and expenses incurred in connection with the Merger (“EBITDA”) for the four consecutive fiscal quarters then ended (the “Leverage Ratio”) to exceed 3.50 to 1.00 on the last day of each fiscal quarter, and (ii) the ratio of our EBITDA for the four consecutive fiscal quarters then ended to our consolidated interest expense, including consolidated yield or discount accrued as to outstanding securitization obligations (if any), for the same period to be less than 3.00 to 1.00 as of the end of each fiscal quarter. For purposes of the Leverage Ratio, the Credit Facility provides for the calculation of EBITDA giving pro forma effect to the Merger and certain acquisitions, divestitures and liquidations during the period to which such calculation relates. As of June 28, 2014, we were in compliance with all financial covenants in our debt agreements.

In addition to the Credit Facility, we have various other credit facilities with an aggregate availability of $85.6 million, of which $1.5 million was outstanding at June 28, 2014. Borrowings under these credit facilities bear interest at variable rates.

Debt outstanding at June 28, 2014 matures on a calendar year basis as follows:



	Q3 - Q4
In millions	2014		2015		2016		2017		2018		2019		Thereafter		Total
Contractual debt obligation maturities	$	3.9	$	350.0	$	—	$	1,077.7	$	—	$	250.0	$	1,054.8	$	2,736.4
Capital lease obligations	1.1		7.6		—		—		—		—		—		8.7
Total maturities	$	5.0	$	357.6	$	—	$	1,077.7	$	—	$	250.0	$	1,054.8	$	2,745.1

Capital lease obligations relate primarily to land and buildings and consist of total future minimum lease payments of $9.0 million less the imputed interest of $0.3 million as of June 28, 2014.

As of June 28, 2014 and December 31, 2013, assets under capital lease were $21.5 million and $41.7 million, respectively, less accumulated amortization of $2.3 million and $7.6 million, respectively, all of which were included in Property, plant and equipment, net on the Condensed Consolidated Balance Sheets.