Debt

12 Months Ended

Dec. 31, 2017

Note 17 – Debt

Debt as of December 31, 2017 and 2016 includes the following:

		2017		2016
Credit facilities	$	48,514	$	47,948
Industrial development bonds		15,000		15,000
Municipality-related loans		3,290		3,470
Other debt obligations (including capital leases)		—		58
		66,804		66,476
Short-term debt (including capital leases)		—		(58)
Current portion of long-term debt		(5,736)		(649)
	$	61,068	$	65,769

Credit facilities

The Company’s primary credit facility (“the Credit Facility”) is a $300.0 million syndicated multicurrency credit agreement with a group of lenders which matures in June 2019. The maximum amount available under the 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 the Credit Facility generally bear interest at a base rate or LIBOR rate plus a margin. The Credit Facility has certain financial and other covenants, with the key financial covenant requiring that the Company’s consolidated net debt to adjusted EBITDA ratio cannot exceed 3.50 to 1. As of December 31, 2017 and 2016, the Company’s consolidated net debt to adjusted EBITDA ratio was below 1.0 to 1, and the Company was also in compliance with all of its other covenants. As of December 31, 2017 and 2016, the Company had total credit facility borrowings of approximately $48.5 million and $47.9 million, primarily under the Credit Facility, at weighted average borrowing rates of 1.88% and 1.25%, 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 Facility 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, 2017 and 2016, there was $1.1 million and $1.5 million, respectively, outstanding on this loan.

The Company’s Verkol S.A.U. (“Verkol”) subsidiary has 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 2028. The Company records 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, 2017 and 2016, there was $2.2 and $2.0 million, respectively, outstanding for these loans.

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

2018	$	5,736
2019		49,160
2020		694
2021		407
2022		282

As of December 31, 2017 and 2016, the amounts at which the Company’s debt is recorded are not materially different from their fair market value.