Debt

Our debt consists of the following at December 31,



(in millions)	2013					2012
				Weighted Avg. Int. Rate					Weighted Avg. Int. Rate
Short-term borrowings
Lines of credit	$	33.9				$	40.0
Revolving credit facility	8.0					10.0
Capital lease obligations	—					0.4
Other debt	0.4					0.2
Current maturities of long-term debt	7.4					5.0
Total short-term borrowings	$	49.7		8.7	%	$	55.6		8.9	%
Long-term borrowings
Lines of credit	$	7.1				$	9.2
Term Loan	15.0					—
Capital lease obligations	1.8					1.5
Other debt	1.0					0.1
Less: Current maturities of long-term debt	(7.4		)			(5.0		)
Total long-term debt borrowings	$	17.5		4.4	%	$	5.8		5.2	%

We have a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”). On December 11, 2013 we entered into Amendment 3 to the Revolving Credit and Security Agreement with PNC. Subject to the terms and conditions of the agreement, PNC agreed to continue to provide senior secured revolving credit financing up to an aggregate principal amount of $34.0 million which continues to include up to $10.0 million in letters of credit subject to a narrower borrowing base formula, lender reserves and PNC’s reasonable discretion. The loans under the facilities bear interest at either LIBOR or an alternative base rate, plus a margin that varies with borrowing availability under the revolving credit facility. With this amendment, PNC also provides a senior secured term loan up to an aggregate principal amount of $15.0 million, subject to conditions precedent which have not yet been met. As part of the amendment, we used $2.3 million of the Term Loan funds, at the time of the amendment, to pay down a portion of the PNC revolving credit facility. Currently, the remaining $12.7 million of the PNC Term Loan is held in a blocked account and is recorded in "Restricted cash and cash equivalents" on our Consolidated Balance Sheets. Interest has begun accruing on the entire $15.0 million Term Loan balance, and the 60 monthly installments of $250,000 to repay the principal on the Term Loan began January 2, 2014. These funds in the blocked account will become available if and when we satisfy all of the closing conditions, which we must do by May 31, 2014, or PNC may apply the amount held in the blocked account to principal installments of the Term Loan.

We paid $0.2 million in fees associated with Amendment 3. We had a balance of $0.1 million in fees associated with the original agreement in 2011, which were capitalized and will now be amortized over the 5 year term of the amended agreement. The maturity of these facilities has been extended to December 11, 2018. We must also pay a facility fee of 0.375% a year on the unused portion of the facility. 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.

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 for more than five business days. At December 31, 2013, our availability fell below this threshold. In January 2014, we paid $2.0 million on our revolving credit line so that the fixed coverage charge ratio was not required to be tested as of December 31, 2013, however, if we were required to test the fixed coverage charge ratio we would be in compliance. We had $1.1 million of additional borrowing capacity under this facility as of December 31, 2013, after giving effect to our fixed charge coverage ratio covenant and our outstanding borrowings and letters of credit under this facility. We were in compliance with all covenants and terms of the agreement at December 31, 2013.

At December 31, 2013, our borrowings under the PNC revolving facility totaled $8.0 million, borrowings under the PNC term loan were $15.0 million and we had $3.2 million in outstanding letters of credit.

In April 2013, we signed a loan agreement with the Mississippi Development Authority ("MDA") for draws up to $1.5 million at an interest rate of 2.25%. Fixed principal and interest payments commence in March 2014 and continue until February 2021. Draws under the agreement are permitted for purchases of certain equipment at our Tupelo, Mississippi location. At December 31, 2013, our borrowings under the MDA loan agreement totaled $1.1 million.

In the U.S., we have $0.4 million outstanding in short term borrowings related to financing some of our insurance premiums and $1.0 million in long term borrowings related to software financing.

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

In Brazil, as of December 31, 2013, 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 $47.8 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 March 2014 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, 2013, totaled $28.6 million, with an additional $19.2 million available for borrowing, based on our accounts receivable and inventory levels at that date.

In India, we have an aggregate maximum availability of $12.6 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 March 2014 through July 2014. 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 $11.3 million, and based on our borrowing base as of December 31, 2013, we had $1.3 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.

We also have capital lease agreements with an outstanding balance of $1.8 million which are included in our total borrowings balance at December 31, 2013.

Our consolidated borrowings totaled $67.2 million at December 31, 2013 and $61.4 million at December 31, 2012. Our weighted average interest rate for these borrowings was 8.1% for the twelve months ended December 31, 2013 and 8.8% for the twelve months ended December 31, 2012.

Scheduled maturities of debt and capital lease obligations for each of the five years subsequent to December 31, 2013 are as follows:



(in millions)
2014	$	49.7
2015	$	4.7
2016	$	5.3
2017	$	3.6
2018	$	3.1
Thereafter	$	0.8
Total	$	67.2