|9 Months Ended|
Jun. 30, 2016
|Debt Disclosure [Abstract]|
With respect to the Facility, as of June 30, 2016, we had $9.8 in outstanding letters of credit issued and $466.7 of maximum borrowing capacity. $345.1 of borrowing capacity is immediately available based on our leverage covenant at June 30, 2016, with additional amounts available in the event of a qualifying acquisition. The weighted-average interest rates on borrowings under the Facility were 1.60% and 1.43% for the three and nine months ended June 30, 2016, and 1.32% and 1.29% for the same periods in the prior year. The weighted average facility fee was 0.24% and 0.21% for the three and nine months ended June 30, 2016, and 0.23% and 0.23% for the same periods in the prior year. The weighted average interest rate on the Facility’s term loan was 1.90% and 1.71% for the three and nine months ended June 30, 2016, and 1.56% and 1.55% for the same periods in the prior year. We have interest rate swaps on $50.0 of outstanding borrowings under the Facility in order to manage exposure to our variable rate interest payments.
In the normal course of business, the Process Equipment Group provides to certain customers bank guarantees and other credit arrangements in support of performance, warranty, advance payment, and other contractual obligations. This form of trade finance is customary in the industry and, as a result, we are required to maintain adequate capacity to provide the guarantees. As of June 30, 2016, we had credit arrangements totaling $208.7, under which $111.3 was utilized for this purpose. These arrangements included our €150.0 Syndicated Letter of Guarantee Facility (as amended, the “LG Facility”) and other ancillary credit facilities.
In March 2016, the Company entered into an amendment (the “Third Amendment”) to the Private Shelf Agreement, dated as of December 6, 2012 (as amended, the “Shelf Agreement”), among the Company, Prudential Investment Management (“PIM”) and each Prudential Affiliate (as defined thereunder), governing the 4.60% Series A unsecured notes (the “Series A Notes”). The Third Amendment extends the maturity date of the Shelf Agreement to March 24, 2019, and increases the aggregate principal amount available under the private shelf facility from $150.0 to $200.0, of which $100.0 has been drawn. The Shelf Agreement is an uncommitted facility; the issuance of notes under the Shelf Agreement is subject to successful placement by PIM.
The availability of borrowings under the Facility, the LG Facility, and the Shelf Agreement governing the Series A Notes is subject to our ability to meet certain conditions including compliance with covenants, absence of default, and continued accuracy of certain representations and warranties. Financial covenants include a maximum ratio of Indebtedness to EBITDA (as defined in the agreements) of 3.5 to 1.0 and a minimum ratio of EBITDA to interest expense of 3.5 to 1.0. As of June 30, 2016, we were in compliance with all covenants.
The Facility, our senior unsecured notes, Series A Notes, and LG Facility are fully and unconditionally guaranteed by certain of the Company’s domestic subsidiaries.
We had restricted cash of $0.7 and $0.8 at June 30, 2016 and September 30, 2015.
The entire disclosure for long-term debt.
Reference 1: http://www.xbrl.org/2003/role/presentationRef