Debt

Our debt consists of the following at December 31,



(in millions)	2012					2011
				Weighted Avg. Int. Rate					Weighted Avg. Int. Rate
Short-term debt obligations
Lines of credit	$	40.0				$	32.8
Revolving credit facility	10.0					10.2
Capital lease obligations	0.4					—
Other debt	0.2					—
Current maturities of long-term debt	5.0					12.1
Total short-term debt obligations	$	55.6		8.9	%	$	55.1		8.4	%
Long-term debt obligations
Lines of credit	$	9.2				$	16.9
Capital lease obligations	1.5					—
Other debt	0.1					—
Less: Current maturities of long-term debt	(5.0		)			(12.1		)
Total long-term debt obligations	$	5.8		5.2	%	$	4.8		5.0	%

On April 21, 2011, we entered into a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”). Subject to the terms and conditions of the agreement, PNC agreed to provide us with up to a $45.0 million revolving line of credit, including up to $10.0 million in letters of credit, subject to a borrowing base formula, lender reserves and PNC’s reasonable discretion, expiring on April 21, 2015 and bearing interest at either LIBOR or an alternative base rate, plus a margin that varies with borrowing availability. The facility is guaranteed by Tecumseh Products Company and its U.S. and Canadian subsidiaries and is secured by substantially all of the assets of the borrowers, with some exclusions. As of December 30, 2011, we entered into Amendment 1 to the Revolving Credit and Security Agreement with PNC to amend certain non-financial covenants.

The PNC agreement contains various covenants, including limitations on dividends, investments and additional indebtedness and liens, and a minimum fixed charge coverage ratio, which would apply only if average undrawn borrowing availability, as defined by the credit agreement, were to fall below a specified level. We are in compliance with all covenants and terms of the agreement at December 31, 2012.

At December 31, 2012, our borrowings under the PNC facility totaled $10.0 million, and we have an additional $2.1 million of borrowing capacity under the borrowing base formula after giving effect to our fixed charge coverage ratio covenant and $3.4 million in outstanding letters of credit. A quarterly covenant is based on our average undrawn borrowing availability and was such that the covenant did not apply. We paid $0.3 million in fees associated with the agreement in 2011, which were capitalized and will be amortized over the term of the agreement. We must also pay a facility fee of 0.375% a year on the unused portion of the facility. In the U.S., we have $0.2 million outstanding in short term borrowings related to financing some of our insurance premiums, which will be repaid over the next 4 months.

We have various borrowing arrangements at our foreign subsidiaries to support working capital needs and government sponsored borrowings which provide advantageous lending rates.

Our European business has an overdraft line with an available balance at December 31, 2012 of $0.3 million. None of the available balance was utilized at December 31, 2012.

In Brazil, as of December 31, 2012, we have uncommitted, discretionary line of credit facilities with several local private Brazilian banks (some of which are sponsored by the Brazilian government) for an aggregate maximum of $41.4 million, subject to a borrowing base formula computed on a monthly basis. These credit facilities are secured by a portion of our accounts receivable and inventory balances and expire at various times from April 15, 2013 through January 15, 2020. Historically we have been able to enter into replacement facilities when these facilities expire, but such replacements are at the discretion of the banks. Lenders determine, at their discretion, whether to make new advances with respect to each draw on such facilities. There are no restrictive covenants on these credit facilities. Our borrowings under the revolving credit facilities in Brazil, at December 31, 2012, totaled $35.4 million, with an additional $6.0 million available for borrowing, based on our accounts receivable and inventory at that date.

In India, we have an aggregate maximum availability of $14.2 million in line of credit facilities which are secured by land, buildings and equipment, inventories and receivables and are subject to a borrowing base formula computed on a monthly basis. The arrangements expire at various times from April 2013 through July 2013. Historically, we have been able to renew these facilities when they expire; however, such renewal is at the discretion of the banks. Our borrowings under these facilities totaled $13.8 million, and based on our borrowing base as of December 31, 2012, we had $0.4 million available for borrowing under these facilities. There are no restrictive covenants on these credit facilities, except that consent must be received from the bank in order to dispose of certain assets located in India.

Our consolidated borrowings totaled $61.4 million at December 31, 2012 and $59.9 million at December 31, 2011. Our weighted average interest rate for these borrowings was 8.8% for the twelve months ended December 31, 2012 and 7.9% for the twelve months ended December 31, 2011.

Scheduled maturities of debt and capital lease obligations for each of the five years subsequent to December 31, 2012 are as follows:



(in millions)
2013	$	55.6
2014	2.5
2015	2.4
2016	0.4
Thereafter	0.5
Total	$	61.4