Debt and Other Borrowings

9 Months Ended

Sep. 30, 2019

Components of Debt and Other Borrowings

The following is a summary of obligations under senior notes and other borrowings at September 30, 2019 and December 31, 2018:



(In millions)	September 30, 2019			December 31, 2018
5.5% Senior Notes due in 2026, net of unamortized debt issuance costs of $4.0 million and $4.4 million, respectively, at September 30, 2019 and December 31, 2018	$	346.0		$	345.6
Revolving credit facility due 2023⁽¹⁾	—			—
Other borrowings⁽²⁾	2.9			11.1
Total debt	348.9			356.7
Less: debt payable within one year	2.8			10.6
Debt payable after one year	$	346.1		$	346.1
Weighted average interest rates on total debt obligations	5.5		%	5.7		%

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⁽¹⁾	Represents borrowings under the Revolving Credit Facility with an aggregate available principal amount of $350.0 million as of September 30, 2019 and December 31, 2018.


⁽²⁾	Represents borrowings of $1.8 million and $9.4 million, respectively, at September 30, 2019 and December 31, 2018, under various lines of credit and other borrowings, primarily by non-U.S. subsidiaries, as well as $1.1 million and $1.7 million, respectively, of finance lease obligations.

The principal maturities of debt obligations outstanding, net of debt issuance costs, were as follows at September 30, 2019:



(In millions)	Amount
Remainder of 2019	$	2.1
2020	0.8
2021	—
2022	—
2023	—
Thereafter	346.0
Total debt	$	348.9

5.5% Senior Notes

GCP's outstanding 5.5% Senior Notes have an aggregate principal amount of $350.0 million maturing on April 15, 2026. Interest on the 5.5% Senior Notes is payable semi-annually in arrears on April 15 and October 15 of each year. The Company made an interest payment of $9.6 million on April 15, 2019 and October 15, 2019.

The Indenture contains certain customary affirmative and negative covenants and events of default, as described in Note 6, "Debt and Other Borrowings," to the Company's Consolidated Financial Statements included in the 2018 Annual Report in the Form 10-K. The Company was in compliance with all covenants and conditions under the Indenture as of September 30, 2019. There are no events of default under the Indenture as of September 30, 2019.

Credit Agreement

As of September 30, 2019 and December 31, 2018, there were no outstanding borrowings on the Revolving Credit Facility. There were $5.5 million and $5.0 million, respectively, in outstanding letters of credit which resulted in available credit of $344.5 million and $345.0 million, respectively. There were no interest payments on the Revolving Credit Facility during the three and nine months ended September 30, 2019. The interest rate per annum applicable to the Revolving Credit Facility is equal to, at GCP’s option, either: (i) a base rate plus a margin ranging from 0.5% to 1.0%, or (ii) LIBOR plus a margin ranging from 1.5% to 2.0%, based upon the total leverage ratio of GCP and its restricted subsidiaries in both scenarios.

The Credit Agreement contains conditions that would require mandatory principal payments in advance of the maturity date of the Revolving Credit Facility, as well as certain customary affirmative and negative covenants and events of default, as described in Note 6, "Debt and Other Borrowings," to the Company's Consolidated Financial Statements included in the 2018 Annual Report in the Form 10-K. The Company was in compliance with all covenant terms as of September 30, 2019. There are no events of default as of September 30, 2019.

Debt Issuance Costs

GCP recognizes expenses directly associated with obtaining the Revolving Credit Facility as debt issuance costs which are presented within "Other assets" in the accompanying unaudited Consolidated Balance Sheets. Such costs are amortized over the term of the Revolving Credit Facility and included in “Interest expense and related financing costs” in the accompanying unaudited Consolidated Statements of Operations. As of September 30, 2019 and December 31, 2018, the remaining unamortized debt issuance costs related to the Revolving Credit Facility were $3.3 million and $4.1 million, respectively.

Debt Fair Value

The carrying amount and fair value of GCP's debt and other borrowings were as follows:



	September 30, 2019				December 31, 2018
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
5.5% Senior Notes due in 2026	$	346.0	$	357.0	$	345.6	$	344.2
Other borrowings	2.9		2.9		11.1		11.1
Total debt	$	348.9	$	359.9	$	356.7	$	355.3

Fair value is determined based on Level 2 inputs, including expected future cash flows (discounted at market interest rates), estimated current market prices, and quotes from financial institutions. The increase in fair value compared to the carrying value as of September 30, 2019, was due to decreases in interest rates in September 2019.