Note 5 – Debt

(In thousands)	2011			2010

6% Subordinated Debentures, due 2014	$	148,176		$	148,176
2001 Series IRB's with interest at 1.23%, due through 2021		9,250			10,000
Mueller-Xingrong line of credit with interest at 6.89%, due 2012		40,265			32,020
Other		50			50

		197,741			190,246
Less current portion of debt		(41,265	)		(32,020	)

Long-term debt	$	156,476		$	158,226

On October 26, 2004, as part of a Special Dividend, the Company issued $299.5 million in principal amount of its 6% Subordinated Debentures (the Debentures) due November 1, 2014. Interest on the Debentures is payable semi-annually on May 1 and November 1. The Company may repurchase the Debentures through open market transactions or through privately negotiated transactions. Since issuance of the Debentures, the Company has repurchased and extinguished $151.3 million in principal amount of the Debentures, of which $0.5 million were repurchased in 2009. The Debentures may be redeemed in whole at any time or in part from time-to-time at the option of the Company at a price of 100 percent of the principal amount.

On March 7, 2011, the Company executed a Credit Agreement (the Agreement) with a syndicate of banks establishing an unsecured $350 million revolving credit facility (the Credit Facility) which matures March 7, 2016. Borrowings under the Credit Facility bear interest, at the Company's option, at LIBOR or Base Rate as defined by the Credit Agreement, plus a variable premium. LIBOR advances may be based upon the one, two, three, or six-month LIBOR. The variable premium over LIBOR is based on certain financial ratios, and can range from 150 to 200 basis points for LIBOR based loans and 50 to 100 basis points for Base Rate loans. At December 31, 2011, the premium was 175 basis points for LIBOR loans and 75 basis points for Base Rate loans. Additionally, a facility fee is payable quarterly on the total commitment and varies from 25 to 37.5 basis points based upon the Company's capitalization ratio. Availability of funds under the Credit Facility is reduced by the amount of certain outstanding letters of credit, which are used to secure the Company's payment of insurance deductibles and certain retiree health benefits, totaling approximately $11.3 million at December 31, 2011. Terms of the letters of credit are generally one year but are renewable annually. There were no borrowings outstanding as of December 31, 2011.

On July 29, 2011, Mueller-Xingrong entered into a credit agreement (the JV Credit Agreement) with a syndicate of four banks establishing a secured RMB 350 million, or approximately $50 million revolving credit facility with a maturity date of July 28, 2012. The JV Credit Agreement replaced the previous secured RMB 330 million financing agreement that was scheduled to mature on July 16, 2011. Borrowings under the JV Credit Agreement are secured by the real property and equipment of Mueller-Xingrong and bear interest at 105 percent of the latest base-lending rate published by the People's Bank of China (totaling 6.89 percent at December 31, 2011).

Borrowings under the Agreement and the JV Credit Agreement require, among other things, the satisfaction of certain financial ratios. The JV Credit Agreement also requires lender consent for the payment of dividends. At December 31, 2011, the Company was in compliance with all debt covenants.

Aggregate annual maturities of the Company's debt are $41.3 million in 2012, $1.0 million in 2013, $149.2 million in 2014, $1.0 million in 2015, $1.0 million in 2016, and $4.2 million thereafter. Interest paid in 2011, 2010, and 2009 was $10.8 million, $11.4 million, and $10.1 million, respectively. No interest was capitalized in 2011, 2010, or 2009.