Debt

3 Months Ended

Mar. 31, 2020

Long-term debt

Long-term debt consists of the following:



	March 31, 2020
	Interest Rate Percentage		Maturity Date	March 31, 2020		December 31, 2019
(in Millions)	LIBOR borrowings	Base rate borrowings
Revolving Credit Facility ⁽¹⁾	3.0%	4.3%	2023	$	211.1	$	154.6
Total long-term debt ⁽²⁾				$	211.1	$	154.6

______________________________


(1)	As of March 31, 2020 and December 31, 2019, there were $11.0 million in letters of credit outstanding under our Revolving Credit Facility and $177.9 million and $234.4 million available funds as of March 31, 2020 and December 31, 2019, respectively. Fund availability is subject to the Company meeting its debt covenants.

(2) As of March 31, 2020 and December 31, 2019, the Company had no debt maturing within one year.

Revolving Credit Facility

On September 28, 2018, we entered into a credit agreement among us, our subsidiary, FMC Lithium USA Corp., as borrowers (the “Borrowers”), certain of our wholly owned subsidiaries as guarantors (the "Guarantors"), the lenders party thereto (the “Lenders”), Citibank, N.A., as administrative agent (the "Agent"), and certain other financial institutions party thereto, as joint lead arrangers (the “Original Credit Agreement”, as amended by the First Amendment (as defined below), the "Credit Agreement"). The Credit Agreement provides for a $400 million senior secured revolving credit facility, $50 million of which is available for the issuance of letters of credit for the account of the Borrowers, with an option, subject to certain conditions and limitations, to increase the aggregate amount of the revolving credit commitments to $600 million (the “Revolving Credit Facility”). The issuance of letters of credit and the proceeds of revolving credit loans made pursuant to the Revolving Credit Facility are available, and will be used, for general corporate purposes, including capital expenditures and permitted acquisitions, of the Borrowers and their subsidiaries.

On May 6, 2020, we entered into the First Amendment to the Credit Agreement (the "First Amendment") with FMC Lithium USA Corp., the Guarantors, the Lenders and the Agent. Among other things, the First Amendment amended and restated the Original Credit Agreement to (i) increase our maximum net leverage ratio for the fiscal quarters ending June 30, 2020, September 30, 2020 and December 31, 2020 from 3.5 to 6.0, (ii) put a cap of $325 million on our overall borrowings under the Revolving Credit Facility until March 31, 2021, (iii) amend our negative covenant on indebtedness to permit unsecured indebtedness (including convertible debt) up to $350 million, (iv) amend our negative covenants on investments to permit additional investments in Minera del Altiplano S.A., our Argentine subsidiary, (v) restrict our ability to declare or pay cash dividends until March 31, 2021 and (vi) increase the applicable margin on our borrowings by 25 basis points, in each case as described in the First Amendment.

The foregoing description of the First Amendment does not purport to be complete and is qualified in its entirety by reference to the First Amendment, including the amended and restated Credit Agreement attached thereto, which is filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q.

See Note 10, Part II, Item 8 of our 2019 Annual Report on Form 10-K for more information about the credit agreement.

Covenants

The Credit Agreement contains certain affirmative and negative covenants that are binding on the Borrowers and their subsidiaries, including, among others, restrictions (subject to exceptions and qualifications) on the ability of the Borrowers and their subsidiaries to create liens, to undertake fundamental changes, to incur debt, to sell or dispose of assets, to make investments, to make restricted payments such as dividends, distributions or equity repurchases, to change the nature of their businesses, to enter into transactions with affiliates and to enter into certain burdensome agreements. Furthermore, the Borrowers are subject to financial covenants regarding leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Under the covenants, our maximum allowable net leverage ratio is 3.5 for the fiscal quarter ended March 31, 2020, 6.0 for the fiscal quarters ending June 30, 2020, September 30, 2020 and December 31, 2020 and 3.5 for each fiscal quarter ending thereafter. Our minimum allowable interest coverage ratio is 3.5. We were in compliance with all requirements of the covenants at March 31, 2020.