Debt

12 Months Ended

Dec. 31, 2016

Note 16 – Debt

Debt as of December 31, 2016 and 2015 includes the following:

		2016		2015
Credit facilities	$	47,948	$	62,884
Industrial development bonds		15,000		15,000
Municipality-related loans		3,470		4,098
Other debt obligations (including capital leases)		58		119
		66,476		82,101
Short-term debt (including capital leases)		(58)		—
Current portion of long-term debt		(649)		(662)
	$	65,769	$	81,439

Credit facilities

The Company’s primary credit facility is a $300.0 million syndicated multicurrency credit agreement with a group of lenders which matures in June 2018. The maximum amount available under this credit facility can be increased to $400.0 million at the Company’s option if the lenders agree and the Company satisfies certain conditions. Borrowings under this credit facility generally bear interest at a base rate or LIBOR rate plus a margin. Access to this credit facility is dependent on meeting certain financial and other covenants, but primarily depends on the Company’s consolidated leverage ratio calculation which cannot exceed 3.50 to 1. As of December 31, 2016 and 2015, the Company’s consolidated leverage ratio was below 1.0 to 1, respectively, and the Company was also in compliance with all of the other covenants. At December 31, 2016 and 2015, the Company had total credit facility borrowings of approximately $47.9 million and $62.9 million, primarily under this credit facility, at weighted average borrowing rates of 1.25% and 1.38%, respectively.

Industrial development bonds

The Company has two fixed rate, industrial development authority demand bonds, with $5.0 million due in 2018, bearing interest at a rate of 5.60%, and $10.0 million due in 2028, bearing interest at a rate of 5.26%. These bonds have similar covenants to the credit facilities noted above.

Municipality-related loans

As part of a past expansion project at the Company’s Middletown, Ohio facility, it agreed to a low interest rate $3.5 million loan with the Ohio Department of Development. Principal repayment on this loan began in September 2010 with its final maturity being in February 2021. The current interest rate of 2% will rise to 3% beginning March 2019 until final maturity. As of December 31, 2016 and 2015, there was $1.5 million and $1.8 million, respectively, outstanding on this loan.

With the 2015 acquisition of Verkol S.A.U. (“Verkol”), the Company assumed certain loans, issued by the local government, which are either interest-free or bear interest at a subsidized rate. These loans mature periodically, with the last maturity occurring in 2026. The Company recorded these loans at fair value based on market interest rates on the date of acquisition and continues to measure the loans at amortized cost, recognizing the implicit interest incurred. As of December 31, 2016 and 2015, there was $2.0 and $2.3 million, respectively, outstanding for these loans.

During the next five years, payments on the Company’s debt, including capital lease maturities, are due as follows:

2017	$	707
2018		53,364
2019		645
2020		641
2021		341

At December 31, 2016 and 2015, the amounts at which the Company’s debt is recorded are not materially different from their fair market value.