Quarterly report pursuant to Section 13 or 15(d)

Debt

v2.4.1.9
Debt
 3 Months Ended
Apr. 04, 2015
Debt Disclosure [Abstract]  
Debt
Note 16 – Debt

Long-term debt at April 4, 2015, December 31, 2014 and March 29, 2014, consisted of the following:
(in millions)
April 4,
2015
 
December 31,
2014
 
March 29,
2014
Notes, 7.125% due 2027, net of discount of $0.5, $0.5 and $0.5
$
162.7

 
$
162.7

 
$
162.7

Senior notes, currently 4.625% due 2021(A)
152.4

 
150.5

 
150.0

Debentures, 7.375% due 2023, net of discount of $0.2, $0.2 and $0.2(A)
105.4

 
104.1

 
103.7

Loan with Fond du Lac County Economic Development Corporation, 2.0% due 2021, net of discount of $5.0, $5.2 and $5.7
32.2

 
32.5

 
36.5

Notes, various up to 5.892% payable through 2022
4.9

 
5.9

 
6.3

Total long-term debt
457.6

 
455.7


459.2

Current maturities of long-term debt
(5.0
)
 
(5.5
)
 
(5.7
)
Long-term debt, net of current maturities
$
452.6

 
$
450.2


$
453.5



(A) Included in Senior notes, 4.625% due 2021 and Debentures, 7.375% due 2023 at April 4, 2015 and December 31, 2014, are the estimated aggregate fair values related to the fixed-to-floating interest rate swaps as discussed in Note 4 – Financial Instruments.

The Company did not repurchase debt during the three months ended April 4, 2015 and March 29, 2014.

In June 2014, the Company amended and restated the five-year $300.0 million secured, asset-based borrowing facility it entered into during March 2011 and converted it into a five-year $300 million secured facility (Facility) which is in effect through 2019. Under the terms of the agreement, the security was released as of December 26, 2014. As of April 4, 2015, available borrowing capacity totaled $294.1 million, net of $5.9 million of letters of credit outstanding under the Facility.  The Company has the ability to issue up to $100.0 million in letters of credit under the Facility.  The Company had no borrowings under the Facility during the three months ended April 4, 2015.  The Company initially paid a facility fee of 25.0 basis points per annum, however in August 2014, the fee was adjusted to 20.0 basis points per annum based on the Company's leverage ratio.  Once the Company achieves the Investment Grade Release Conditions, the facility fee per annum will be within a range of 12.5 to 35.0 basis points based on the Company's credit rating. The Investment Grade Release Conditions are defined as the date upon which the Company receives an investment grade credit rating by either Standard & Poor's or Moody's and meets the leverage ratio requirements of less than or equal to 2.25:1.00 for the prior two fiscal quarters. Under the terms of the Facility, the Company has two borrowing options, including borrowing at a rate tied to adjusted LIBOR plus a spread of 130.0 basis points or a base rate plus a margin of 30.0 basis points. The rates are determined by a leverage ratio, with a range of 130.0 to 190.0 basis points for LIBOR rate borrowings and a range of 30.0 to 90.0 basis points for base rate borrowings, until the occurrence of the Investment Grade Release Conditions, on and after which the rate will be determined by the Company’s credit ratings, with a range of 100.0 to 190.0 basis points for LIBOR rate borrowings and a range of 0.0 to 90.0 basis points for base rate borrowings.

The Company is required to maintain compliance with two financial covenants included in the Facility - a minimum interest coverage ratio and a maximum leverage ratio.  The minimum interest coverage ratio, as defined in the agreement, is not permitted to be less than 3.50 to 1.00. The maximum leverage ratio, as defined in the agreement, is not permitted to be more than 3.00 to 1.00, unless the Company completes an acquisition of more than $100.0 million, which increases the maximum leverage ratio to 3.25 to 1.00 for the twelve months following the acquisition. As of April 4, 2015, the Company was in compliance with these two financial covenants in the Facility.