Quarterly report pursuant to Section 13 or 15(d)

Financing Agreements

v2.4.0.8
Financing Agreements
9 Months Ended
Jun. 30, 2014
Financing Agreements  
Financing Agreements

5.              Financing Agreements

 

 

 

June 30,

 

September 30,

 

 

 

2014

 

2013

 

$700 revolving credit facility (excludes outstanding letters of credit)

 

$

264.4

 

$

325.5

 

$200 term loan

 

182.5

 

190.0

 

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

 

148.9

 

148.8

 

Other borrowings

 

0.8

 

 

Total debt

 

596.6

 

664.3

 

Less: current portion

 

14.5

 

10.0

 

Total long-term debt

 

$

582.1

 

$

654.3

 

 

With respect to the $700 revolving credit facility (the “Facility”), as of June 30, 2014, we had $13.1 in outstanding letters of credit issued and $422.5 of maximum borrowing capacity.  $342.8 of borrowing capacity is immediately available based on our leverage covenant at June 30, 2014, with additional amounts available in the event of a qualifying acquisition.  The weighted-average interest rates on borrowings under the Facility were 1.32% and 1.35% for the three and nine months ended June 30, 2014, and 1.37% for the same periods in the prior year.  The Facility carries a leverage-based facility fee, assessed on the entire facility amount.

 

The weighted average interest rates on the term loan were 1.58% and 1.64% for the three and nine months ended June 30, 2014, and 1.70% and 1.73% for the same periods in the prior year.

 

In the normal course of business, the Process Equipment Group provides customers with 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 maintain adequate capacity to provide the guarantees.  As of June 30, 2014, we had guarantee arrangements with capacity totaling $279.3 under which $220.6 was utilized for this purpose.  These arrangements include a €150.0 Syndicated Letter of Guarantee Facility (“LG Facility”) under which unsecured letters of credit, bank guarantees, or other surety bonds may be issued.

 

The availability of borrowings under the Facility and the LG Facility is subject to our ability to meet certain conditions including compliance with covenants, absence of default, and continued accuracy of certain representations and warranties.  As of June 30, 2014, we were in compliance with all covenants.

 

We had restricted cash of $0.5 and $1.3 at June 30, 2014 and September 30, 2013.