Debt

12 Months Ended

Dec. 28, 2019



(In thousands)	2019			2018

Subordinated Debentures with interest at 6.00%, due 2027	$	284,479		$	284,479
Revolving Credit Facility with interest at 3.20%, due 2021	90,000			195,000
Jungwoo-Mueller credit facility with interest at 2.86%, due 2019	—			5,264
Jungwoo-Mueller credit facility with interest at 2.55%, due 2020	5,768			5,104
2001 Series IRB's with interest at 3.03%, due 2021	1,250			2,250
Other	5,295			5,458
	386,792			497,555

Less debt issuance costs	(538		)	(857		)
Less current portion of debt	(7,530		)	(7,101		)

Long-term debt	$	378,724		$	489,597

Subordinated Debentures

On March 9, 2017, the Company distributed a special dividend of $3.00 in cash and $5.00 in principal amount of the Company’s 6% Subordinated Debentures (Debentures) due March 1, 2027 for each share of common stock outstanding. Interest on the Debentures is payable semiannually on September 1 and March 1.

The Debentures are subordinated to all other funded debt of the Company and are callable, in whole or in part, at any time at the option of the Company, subject to declining call premiums during the first five years. The Debentures also grant each holder the right to require the Company to repurchase such holder’s Debentures in the event of a change in control at declining repurchase premiums during the first five years. The Debentures may be redeemed, subject to the conditions set forth above, at the following redemption price (expressed as a percentage of principal amount) plus any accrued but unpaid interest to, but excluding, the redemption date:

If redeemed during the 12-month period beginning March 9:



Year		Redemption Price

2019		104%
2020		103
2021		102
2022 and thereafter		100

Revolving Credit Facility

The Company’s Credit Agreement provides for an unsecured $350.0 million revolving credit facility (Revolving Credit Facility) that matures on December 6, 2021. Borrowings under the Revolving 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, three, or six-month LIBOR. The variable premium is based upon the Company’s debt to total capitalization ratio, and can range from 112.5 to 162.5 basis points for LIBOR based loans and 12.5 to 62.5 basis points for Base Rate loans. At December 28, 2019, the premium was 150.0 basis points for LIBOR loans and 50.0 basis points for Base Rate loans. Additionally, a commitment fee is payable quarterly on the total commitment less any outstanding loans or issued letters of credit, and varies from 15.0 to 30.0 basis points based upon the Company’s debt to total capitalization ratio. Availability of funds under the Revolving 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 $11.9 million at December 28, 2019. Terms of the letters of credit are generally renewable annually.

Jungwoo-Mueller

Jungwoo-Mueller has several secured revolving credit arrangements with a total borrowing capacity of KRW 25.8 billion (or approximately $21.9 million). Borrowings are secured by the real property and equipment of Jungwoo-Mueller.

Covenants contained in the Company’s financing obligations require, among other things, the maintenance of minimum levels of tangible net worth and the satisfaction of certain minimum financial ratios. At December 28, 2019, the Company was in compliance with all debt covenants.

Aggregate annual maturities of the Company’s debt are as follows:



(In thousands)	Amount

2020	$	7,530
2021	90,502
2022	525
2023	804
2024	540
Thereafter	286,891

Long-term debt	$	386,792

Net interest expense consisted of the following:



(In thousands)	2019			2018			2017

Interest expense	$	25,957		$	25,349		$	19,716
Capitalized interest	(274		)	(150		)	(214		)

	$	25,683		$	25,199		$	19,502

Interest paid in 2019, 2018, and 2017 was $25.4 million, $25.2 million, and $13.8 million, respectively.