Quarterly report pursuant to Section 13 or 15(d)

Financing Agreements

v2.4.0.6
Financing Agreements
9 Months Ended
Jun. 30, 2012
Financing Agreements  
Financing Agreements

6.               Financing Agreements

 

 

 

June 30,

 

September 30,

 

 

 

2012

 

2011

 

$400 revolving credit facility (excludes outstanding letters of credit)

 

$

125.0

 

$

283.0

 

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

 

148.6

 

148.5

 

Total long-term debt

 

$

273.6

 

$

431.5

 

 

As of June 30, 2012, we (i) had $6.5 outstanding letters of credit under our $400 revolving credit facility, (ii) were in compliance with all covenants, and (iii) had $268.5 of remaining borrowing capacity available.  The weighted-average interest rate was 0.7% for the three- and nine-month periods ended June 30, 2012 and 2011.  We entered into a new $600 five-year senior unsecured revolving credit facility on July 27, 2012, which replaced our $400 revolving credit facility.  See Note 18 for further details.  Under the Distribution Agreement with Hill-Rom Holdings, Inc., our ability to borrow using the revolving credit facility for certain strategic transactions such as acquisitions may be limited.  The Distribution Agreement is described fully in our Annual Report on Form 10-K for the year ended September 30, 2011.

 

As of June 30, 2012, our Swiss subsidiary maintained additional availability of $18.3 through local credit facilities collateralized by cash or real property.  There were no borrowings under these facilities as of June 30, and availability was reduced by $4.9 for outstanding bank guarantees.  We had $9.9 additional outstanding letters of credit and bank guarantees with other financial institutions and restricted cash of $1.6 at June 30, 2012.

 

On July 9, 2010, we issued $150 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.  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 of $2.1 are being amortized to interest expense over the term of the Notes.