Quarterly report pursuant to Section 13 or 15(d)

Financing Agreements

v2.4.0.6
Financing Agreements
3 Months Ended
Dec. 31, 2011
Financing Agreements  
Financing Agreements

6.               Financing Agreements

 

 

 

December 31,

 

September 30,

 

 

 

2011

 

2011

 

$400 revolving credit facility

 

$

283.0

 

$

283.0

 

$150 senior unsecured notes, due July 15, 2020, net of discount

 

148.5

 

148.5

 

Total long-term debt

 

$

431.5

 

$

431.5

 

 

As of December 31, 2011, we (i) had $6.7 outstanding letters of credit under the revolving credit facility, (ii) were in compliance with all covenants set forth in the credit agreement, and (iii) had $110.3 of remaining borrowing capacity available under the facility.  Under the Distribution Agreement with Hill-Rom Holdings, Inc., the ability to borrow against the facility for certain strategic transactions such as acquisitions may be limited.  The term of the revolving credit facility expires in March 2013.  During the three-month periods ended December 31, 2011 and 2010, the weighted average interest rates were 0.7%.

 

Our Swiss subsidiary maintains additional availability of $18.6 through local credit facilities collateralized by cash or real property.  As of December 31, 2011, there were no borrowings under these facilities, and availability was reduced by $5.2 for outstanding bank guarantees.  We had $12.0 additional outstanding letters of credit and bank guarantees with other financial institutions.

 

On July 9, 2010, we issued $150.0 fixed-rate senior unsecured notes due July 15, 2020 (the Notes).  The Notes bear interest at a fixed rate of 5.5%, payable semi-annually in arrears commencing January 15, 2011. The Notes were issued at an original issue discount of $1.6, which is being amortized to interest expense over the term of the Notes using the effective interest rate method, resulting in an annual interest rate of 5.65%. Deferred financing costs associated with the Notes of $2.1 are being amortized to interest expense over the term of the Notes.