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Long-Term Debt
6 Months Ended
Jun. 30, 2011
Long-Term Debt  
Long-Term Debt
5. Long-Term Debt

 

     June 30,
2011
    December 31,
2010
    June 30,
2010
 
     (Dollars in Thousands)  

6.6% Senior Notes, due 2018

   $ 298,380      $ 298,288      $ 298,198   

7% Debentures, due 2025

     124,405        124,393        124,382   

6.25% Senior Notes, due 2037

     247,898        247,882        247,866   

6.875% Notes, due 2011

     —          242,129        242,109   

Term Loan Facility, due 2015, interest rate of 1.87% at June 30, 2011

     250,000        —          —     

Term Loan, due 2012, interest rate of 3.29% at December 31, 2010

     —          111,750        111,750   

Revolving Facility, interest rate of 1.56% at June 30, 2011

     60,000        —          —     

AR Credit Facility, interest rate of 1.60% at June 30, 2011

     100,000        —          25,000   

Other notes

     5,232        6,317        6,780   
                        

Total debt

     1,085,915        1,030,759        1,056,085   

Less current maturities

     (106,959     (248,714     (244,147
                        

Long-term debt

   $ 978,956      $ 782,045      $ 811,938   
                        

On March 31, 2011, the Corporation entered into a Credit Agreement with JPMorgan Chase Bank, N.A., as Administrative Agent, Wells Fargo Bank, N.A., Branch Banking and Trust Company, SunTrust Bank, and Bank of America, N.A., as Co-Syndication Agents, and the lenders party thereto (the "Credit Agreement"), which provides for a $250,000,000 senior unsecured term loan (the "Term Loan Facility") and a $350,000,000 four-year senior unsecured revolving facility (the "Revolving Facility", and together with the Term Loan Facility, the "Senior Unsecured Credit Facilities"). The Senior Unsecured Credit Facilities are syndicated with the following banks:

 

Lender

   Revolving Facility
Commitment
     Term Loan Facility
Commitment
 
     (Dollars in Thousands)  

JPMorgan Chase Bank, N.A.

   $ 46,667       $ 33,333   

Wells Fargo Bank, N.A.

     46,667         33,333   

SunTrust Bank

     46,667         33,333   

Branch Banking and Trust Company

     46,667         33,333   

Bank of America, N.A.

     46,667         33,333   

Citibank, N.A.

     29,167         20,833   

Deutsche Bank AG New York Branch

     29,167         20,833   

The Northern Trust Company

     29,167         20,833   

Comerica Bank

     14,582         10,418   

Regions Bank

     14,582         10,418   
                 

Total

   $ 350,000       $ 250,000   
                 

 

Borrowings under the Senior Unsecured Credit Facilities bear interest, at the Corporation's option, at rates based upon LIBOR or a base rate, plus, for each rate, a margin determined in accordance with a ratings-based pricing grid. The base rate is defined as the highest of (i) JPMorgan Chase Bank N.A.'s prime lending rate, (ii) the Federal Funds rate plus 0.5% and (iii) one-month LIBOR plus 1%.

The Revolving Facility expires on March 31, 2015, with any outstanding principal amounts, together with interest accrued thereon, due in full on that date. At June 30, 2011, the Corporation had borrowings of $60,000,000 outstanding under the Revolving Facility.

On March 31, 2011, the Corporation borrowed $250,000,000 under the Term Loan Facility, a portion of which was used to prepay the $111,750,000 Term Loan due 2012. The Corporation is required to make annual principal payments of $5,000,000, with the remaining outstanding principal, together with interest accrued thereon, due in full on March 31, 2015.

On March 31, 2011, the Corporation entered into the Second Amendment to Account Purchase Agreement with Wells Fargo Bank, N.A., which amended its $100,000,000 secured accounts receivable credit facility (the "AR Credit Facility"). As amended, purchases and settlements will be made monthly. Additionally, as amended, borrowings under the AR Credit Facility bear interest at a rate equal to theone-month LIBOR plus 1.35%. Borrowings under the AR Credit Facility are limited based on the balance of the Corporation's accounts receivable.

On April 1, 2011, the Corporation borrowed $100,000,000 under the AR Credit Facility, which in addition to proceeds from the Term Loan Facility, was used to repay $242,140,000 of 6.875% Notes that matured on that date. At June 30, 2011 and 2010, respectively, the Corporation had borrowings of $100,000,000 and $25,000,000 outstanding under the AR Credit Facility. The Corporation had no outstanding borrowings under the AR Credit Facility at December 31, 2010.

The Credit Agreement and the AR Credit Facility, as amended, require the Corporation's ratio of consolidated debt to consolidated earnings before interest, taxes, depreciation, depletion and amortization (EBITDA), as defined, for the trailing twelve month period (the "Ratio") to not exceed 3.5x as of the end of any fiscal quarter, provided that the Corporation may exclude from the Ratio debt incurred in connection with certain acquisitions for a period of 180 days so long as the Corporation maintains specified ratings on its long-term unsecured debt and the Ratio calculated without such exclusion does not exceed 3.75xAdditionally, if no amounts are outstanding under both the Revolving Facility and the AR Credit Facility, consolidated debt, including debt guaranteed by the Corporation, may be reduced by the Corporation's unrestricted cash and cash equivalents in excess of $50,000,000, such reduction not to exceed $200,000,000, for purposes of the covenant calculation.

 

Accumulated other comprehensive loss includes the unamortized value of terminated forward starting interest rate swap agreements. For the three and six months ended June 30, 2011, the Corporation recognized $239,000 and $474,000, respectively, as additional interest expense. For the three and six months ended June 30, 2010, the Corporation recognized $223,000 and $441,000, respectively, as additional interest expense. The ongoing amortization of the terminated value of the forward starting interest rate swap agreements will increase annual interest expense by approximately $1,000,000 until the maturity of the 6.6% Senior Notes in 2018.