Note 14. Long-Term Debt and Commitments

The following is a summary of long term debt:

	December 31,
	2014		2013
	(millions of dollars)
Term Loan Facility, net of unamortized discount of $14.1 million due May 9, 2021	$	1,454.0	$	-
3.46% Series A Senior Notes due October 7, 2020		-		30.0
4.13% Series B Senior Notes due October 7, 2023		-		45.0
China Loan Facilities		1.8		-
Variable/Fixed Rate Industrial Development Revenue
Bonds Series 1999 due November 1, 2014		-		8.2
Total	$	1,455.8	$	83.2
Less: Current maturities		0.3		8.2
Long-term debt	$	1,455.5	$	75.0

On May 9, 2014, in connection with the acquisition of AMCOL, the Company entered into a credit agreement providing for the $1.56 billion Term Facility and a $200 million senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Facilities”). The net proceeds of the Term Facility, together with the Company’s cash on hand, were used as cash consideration for the acquisition of AMCOL and to refinance certain existing indebtedness of the Company (including the Company’s 3.46% Series A Senior Notes due October 7, 2020 and 4.13% Series B Senior Notes due October 7, 2023) and AMCOL and to pay fees and expenses in connection with the foregoing. Loans under the Revolving Facility will be used for working capital and other general corporate purposes of the Company and its subsidiaries. During the second half of 2014, $91.8 million in principal was repaid on this Term Facility. As of December 31, 2014, the Revolving Facility was unused.

The loans outstanding under the Term Facility will mature on May 9, 2021 and the loans outstanding (if any) and commitments under the Revolving Facility will mature and terminate, as the case may be, on May 9, 2019. Loans under the Term Facility bear interest at a rate equal to an adjusted LIBOR rate (subject to a floor of 0.75%) plus an applicable margin equal to 3.25% per annum. Loans under the Revolving Facility will bear interest at a rate equal to an adjusted LIBOR rate plus an applicable margin equal to 1.75% per annum. Such rates are subject to decrease by up to 25 basis points in the event that, and for so long as, the Company’s net leverage ratio (as defined in the credit agreement) is less than certain thresholds. The Term Facility was issued at a 1% discount and has a 1% required amortization per year. The Company will pay certain fees under the credit agreement, including a commitment fee on the total unused commitment under the Revolving Facility. The obligations of the Company under the Facilities are unconditionally guaranteed jointly and severally by, subject to certain exceptions, all material domestic subsidiaries of the Company (the “Guarantors”) and secured, subject to certain exceptions, by a security interest in substantially all of the assets of the Company and the Guarantors.

The credit agreement contains certain customary affirmative and negative covenants that limit or restrict the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions. In addition, the credit agreement contains a financial covenant that requires the Company, if on the last day of any fiscal quarter loans or letters of credit were outstanding under the Revolving Facility (excluding up to $15 million of letters of credit), to maintain a maximum net leverage ratio (as defined in the credit agreement) of, initially, 5.25 to 1.00 for the four fiscal quarter period preceding such day. Such maximum net leverage ratio requirement is subject to decrease during the duration of the facility to a minimum level (when applicable) of 3.50 to 1.00. As of December 31, 2014, there were no loans and $9.4 million in letters of credit outstanding under the Revolving Facility. The Company is in compliance with all the covenants associated with this Revolving Facility as of the end of the period covered by this report.

The Company incurred $28.7 million in deferred financing costs associated with the debt financing of the acquisition. Such amounts are included in Other assets and deferred charges line on the Consolidated Balance Sheet as of December 31, 2014.

On June 30, 2014, the Company repaid the $8.2 million Variable/Fixed Rate Industrial Development Revenue Bonds Series 1999 due November 1, 2014.

During the third quarter of 2014, the Company entered into a committed loan facility for the funding of a new manufacturing facility in China. The loan facility is for 47.5 million RMB and $1.8 million with an availability period until May 30, 2015. The Company has borrowed $1.4 million on this facility as of December 31, 2014. Principal will be repaid in accordance with a payment schedule beginning in 2015 and ending in 2017, with final maturity of this facility in December 2017.

During the fourth quarter of 2014, the Company entered into two additional committed loan facilities for the funding of new manufacturing facilities in China. The loan facilities are for 5.3 million RMB and 21 million RMB, respectively, with availability periods until June 20, 2015. The Company has borrowed $0.3 million on the 5.3 million RMB facility as of December 31, 2014. There were no borrowings on the 21 million RMB facility as December 31, 2014. Principal will be repaid in accordance with a payment schedule beginning in 2015 and ending in 2018.

As of December 31, 2014, the Company had $39.8 million in uncommitted short-term bank credit lines, of which approximately $5.6 million was in use.

Short-term borrowings as of December 31, 2014 and 2013 were $5.6 million and $5.5 million, respectively. The weighted average interest rate on short-term borrowings outstanding as of December 31, 2014 was 4.1% and 4.8%, respectively.

The aggregate maturities of long-term debt are as follows: $0.3 million in 2015; $0.4 million in 2016; $0.8 million in 2017; $0.2 million in 2018, $0.0 million in 2019; and $1,468.2 million thereafter.

During 2014, 2013 and 2012, respectively, the Company incurred interest costs of $44.6 million, $3.4 million and $3.5 million including $0.6 million, $0.1million and $0.3 million, respectively, which were capitalized. Interest paid approximated the incurred interest cost.