Quarterly report pursuant to Section 13 or 15(d)

Debt

v2.4.0.8
Debt
 3 Months Ended
Mar. 29, 2014
Debt Disclosure [Abstract]  
Debt
Note 16 – Debt

Long-term debt at March 29, 2014 and December 31, 2013, consisted of the following:
(in millions)
March 29,
2014
 
December 31,
2013
Notes, 7.125% due 2027, net of discount of $0.5 and $0.5
$
162.7

 
$
162.7

Senior notes, 4.625% due 2021
150.0

 
150.0

Debentures, 7.375% due 2023, net of discount of $0.2 and $0.2
103.7

 
103.7

Loan with Fond du Lac County Economic Development Corporation, 2.0% due 2021, net of discount of $5.7 and $5.9
36.5

 
36.8

Notes, various up to 5.892% payable through 2022
6.3

 
6.6

Total long-term debt
459.2

 
459.8

Current maturities of long-term debt
(5.7
)
 
(6.4
)
Long-term debt, net of current maturities
$
453.5

 
$
453.4



The Company did not repurchase debt during the first quarter of 2014. The Company repurchased $1.0 million of its Notes due 2027 during the first quarter of 2013 and recorded a $0.1 million Loss on early extinguishment of debt.

In March 2011, the Company entered into a five-year $300.0 million secured, asset-based borrowing facility (Facility).  Borrowings under this Facility are limited to the lesser of $300.0 million or the value of the borrowing base, consisting of certain accounts receivable and inventory of the Company’s domestic subsidiaries.  As of March 29, 2014, the borrowing base totaled $380.5 million, and available borrowing capacity totaled $283.2 million, net of $16.8 million of letters of credit outstanding under the Facility.  The Company has the ability to issue up to $125.0 million in letters of credit under the Facility.  The Company had no borrowings under the Facility during the three months ended March 29, 2014.  The Company pays a facility fee of 25.0 to 62.5 basis points per annum, which is adjusted based on a leverage ratio.  The facility fee was 25.0 basis points per annum as of March 29, 2014.  Under the terms of the Facility, the Company has multiple borrowing options, including borrowing at a rate tied to adjusted LIBOR plus a spread of 225 to 300 basis points, which is adjusted based on a leverage ratio.  The borrowing spread was 225 basis points as of March 29, 2014.  The Company may also borrow at the highest of the following, plus a spread of 125 to 200 basis points, which is adjusted based on a leverage ratio (125 basis points as of March 29, 2014): the Federal Funds rate plus 0.50 percent; the Prime Rate established by JPMorgan Chase Bank, N.A.; or the one month adjusted LIBOR rate plus 1.00 percent.  

The Company’s borrowing capacity may also be affected by the fixed charge covenant included in the Facility.  The covenant requires that the Company maintain a fixed charge coverage ratio, as defined in the agreement, of greater than 1.0, whenever unused borrowing capacity plus certain cash balances (together representing Availability), falls below $37.5 million.  At the end of the first quarter of 2014, the Company had a fixed charge coverage ratio in excess of 1.0, and therefore had full access to borrowing capacity available under the Facility.  When the fixed charge covenant ratio is below 1.0, the Company is required to maintain at least $37.5 million of Availability in order to be in compliance with the covenant.  Consequently, the borrowing capacity is effectively reduced by $37.5 million whenever the fixed charge covenant ratio falls below 1.0.