Debt and Bank Credit Facilities |
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Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Bank Credit Facilities | Debt and Bank Credit Facilities The Company's indebtedness as of December 30, 2017 and December 31, 2016 was as follows (in millions):
Credit Agreement In connection with the PTS Acquisition, on January 30, 2015, the Company entered into a new Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as Administrative Agent and the lenders named therein, providing for a (i) 5-year unsecured term loan facility in the principal amount of $1.25 billion (the “Term Facility”) and (ii) a 5-year unsecured multicurrency revolving facility in the principal amount of $500.0 million (the “Multicurrency Revolving Facility”), including a $100 million letter of credit sub facility available for general corporate purposes. Borrowings under the Credit Agreement bear interest at floating rates based upon indices determined by the currency of the borrowing, plus an applicable margin determined by reference to the Company's consolidated funded debt to consolidated EBITDA ratio or at an alternative base rate. The Term Facility was drawn in full on January 30, 2015 in connection with the closing of the PTS Acquisition. The loan under the Term Facility requires quarterly amortization at a rate starting at 5.0% per annum, increasing to 7.5% per annum after two years and further increasing to 10.0% per annum for the last two years of the Term Facility, unless previously prepaid. The weighted average interest rate on the Term Facility was 2.6% and 2.3% for the years ended December 30, 2017 and December 31, 2016, respectively. The Credit Agreement requires the Company to prepay the loans under the Term Facility with 100% of the net cash proceeds received from specified asset sales and borrowed money indebtedness, subject to certain exceptions. The Company repaid $177.0 million in 2017 and $320.0 million in 2016. At December 30, 2017 the Company had borrowings under the Multicurrency Revolving Facility in the amount of $19.7 million, $5.3 million of standby letters of credit issued under the facility, and $475.0 million of available borrowing capacity. The average daily balance in borrowings under the Multicurrency Revolving Facility was $111.2 million and $21.0 million, and the weighted average interest rate on the Multicurrency Revolving Facility was 2.6% and 2.2% for the years ended December 30, 2017 and December 31, 2016, respectively. The Company pays a non-use fee on the aggregate unused amount of the Multicurrency Revolving Facility at a rate determined by reference to its consolidated funded debt to consolidated EBITDA ratio. The Credit Agreement requires the Company prepay the loans under the Term Facility with 100% of the net cash proceeds received from specified asset sales and borrowed money indebtedness, subject to certain exceptions. Senior Notes At December 30, 2017, the Company had $500.0 million of unsecured senior notes (the “Notes”) outstanding. The Notes consist of $500.0 million in senior notes (the “2011 Notes”) in a private placement which were issued in seven tranches with maturities from seven to twelve years and carry fixed interest rates. As of December 30, 2017, $400.0 million of the 2011 Notes are included in Long-Term Debt and $100.0 million of the 2011 Notes are included in Current Maturities of Long-Term Debt on the Consolidated Balance Sheets. The Company repaid the remaining $100.0 million of the 2007 Notes in August 2017. Details on the Notes at December 30, 2017 were (in millions):
Compliance with Financial Covenants The Credit Agreement and the Notes require the Company to meet specified financial ratios and to satisfy certain financial condition tests. The Company was in compliance with all financial covenants contained in the Notes and the Credit Agreement as of December 30, 2017. Other Notes Payable At December 30, 2017, other notes payable of $5.7 million were outstanding with a weighted average interest rate of 5.7%. At December 31, 2016, other notes payable of $5.1 million were outstanding with a weighted average rate of 5.6%. Other Disclosures Based on rates for instruments with comparable maturities and credit quality, which are classified as Level 2 inputs (see also Note 14 of Notes to the Consolidated Financial Statements), the approximate fair value of the Company's total debt was $1,165.4 million and $1,433.4 million as of December 30, 2017 and December 31, 2016, respectively. Maturities of long-term debt, excluding debt issuance costs, are as follows (in millions):
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