Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt

Debt

Long-term debt in the Consolidated Balance Sheets is summarized as follows:

	December 31,
(Thousands)	2021		2020
Borrowings under Credit Agreement with average interest rate of 2.12% at December 31, 2021	$	152,296	$	34,000
Borrowings under the Term Loan Facility	300,000		—
Foreign debt	2,252		3,157
Fixed rate industrial development revenue bonds	—		1,322
Total long-term debt outstanding	454,548		38,479
Current portion of long-term debt	(15,359)		(1,937)
Gross long-term debt	$	439,189	$	36,542
Unamortized deferred financing fees	(4,801)		—
Long-term debt	$	434,388	$	36,542

Maturities on long-term debt instruments as of December 31, 2021 are as follows:

(Thousands)
2022	$	15,359
2023	15,359
2024	30,359
2025	30,359
2026	362,620
2027 and thereafter	492
Total	$	454,548

In 2021, the Company amended and restated our $375.0 million revolving credit facility (Credit Agreement) in connection with the HCS-Electronic Materials acquisition. A $300 million delayed draw term loan facility was added to the Credit Agreement and the maturity date of the Credit Agreement was extended from 2024 to 2026. Moreover, the Credit Agreement also provides for an uncommitted incremental facility whereby, under certain conditions, the Company may be able to borrow additional term loans in an aggregate amount not to exceed $150.0 million. On November 1, 2021, Materion borrowed the full $300 million available under the delayed draw term loan facility and used the proceeds to pay a portion of the purchase price of the HCS-Electronic Materials acquisition.

The Credit Agreement provides the Company and its subsidiaries with additional capacity to enter into facilities for the consignment, borrowing, or leasing of precious metals and copper, and provides enhanced flexibility to finance acquisitions and other strategic initiatives. Borrowings under the Credit Agreement are secured by substantially all of the assets of the Company and its direct subsidiaries, with the exception of non-mining real property, precious metals, copper and certain other assets.

The Credit Agreement allows the Company to borrow money at a premium over LIBOR or prime rate and at varying maturities. The premium resets quarterly according to the terms and conditions available under the agreement. The Credit Agreement includes restrictive covenants relating to restrictions on additional indebtedness, acquisitions, dividends, and stock repurchases. In addition, the Credit Agreement includes covenants subject to a maximum leverage ratio and a minimum interest coverage ratio. We were in compliance with all of our debt covenants as of December 31, 2021 and December 31, 2020. Cash on hand up to $25 million can benefit the covenants and may benefit the borrowing capacity under the Credit Agreement. At December 31, 2021 and 2020, there was $452.3 million and $34.0 million outstanding under the Credit Agreement, respectively.

At December 31, 2021 and 2020 there was $46.3 million and $48.1 million letters of credit outstanding against the credit sub-facility, respectively. The Company pays a variable commitment fee that may reset quarterly (0.35% as of December 31, 2021) on the available and unborrowed amounts under the revolving credit line.

The available borrowings under the individual existing credit lines totaled $176.4 million as of December 31, 2021.