Debt

12 Months Ended

Dec. 31, 2018

Note 19 – Debt

Debt as of December 31, 2018 and 2017 includes the following:

		2018		2017
Credit facilities	$	24,034	$	48,514
Industrial development bonds		10,000		15,000
Municipality-related loans		2,549		3,290
Other debt obligations (including capital leases)		21		—
Total debt		36,604		66,804
Current portion of long-term debt		(670)		(5,736)
Long-term debt	$	35,934	$	61,068

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. 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 total debt to adjusted EBITDA ratio cannot exceed 3.50 to 1. As of December 31, 2018 and 2017, the Company’s consolidated total debt to adjusted EBITDA ratio was below 1.0 to 1, and the Company was also in compliance with all of its other covenants. During the fourth quarter of 2018, the Credit Facility was amended and restated to extend the maturity date to March 15, 2020. As of December 31, 2018 and 2017, the Company had total credit facility borrowings of $24.0 million and $48.5 million, primarily under the Credit Facility, at weighted average borrowing rates of 1.00% and 1.88%, respectively.

Industrial development bonds

As of December 31, 2018 and 2017, the Company had a fixed rate, industrial development authority bond for $10.0 million due in 2028 and bearing interest at a rate of 5.26%. As of December 31, 2017, the Company also had a $5.0 million industrial development authority bond bearing interest at a rate of 5.60%, which matured and was paid off during the fourth quarter of 2018. 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, 2018 and 2017, there was $0.8 million and $1.1 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, 2018 and 2017, there was $1.8 million and $2.2 million, respectively, outstanding for these loans.

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

2019	$	670
2020		24,730
2021		398
2022		270
2023		240

As of December 31, 2018 and 2017, the amounts at which the Company’s debt is recorded are not materially different from their fair market value.