Borrowings and Debt

9 Months Ended

Sep. 30, 2019

The Company’s borrowings and long-term debt was comprised of the following as of the dates indicated (in millions):



	September 30, 2019					December 31, 2018
	Carrying value⁽¹⁾		Fair Value		Fair Value Level	Carrying value⁽¹⁾		Fair Value		Fair Value Level
$450 million revolving credit facility expiring August 22, 2022^{(2) (3)}	$	175.0	$	175.0	2	$	—	$	—
Non-recourse seed capital facility expiring July 17, 2020⁽³⁾	$	35.0	$	35.0	2	$	—	$	—
Long-term bonds:
$275 million 4.80% Senior Notes Due July 27, 2026	$	272.3	$	285.9	2	$	272.2	$	266.0	2
$125 million 5.125% Senior Notes Due August 1, 2031	$	121.3	$	124.3	2	$	121.1	$	102.3	2
Total borrowings and long-term debt	$	603.6	$	620.2		$	393.3	$	368.3


(1)	The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts.


(2)	Revolving credit facility of $350 million set to expire on October 15, 2019 was terminated. A new revolving credit facility of $450 million was executed on August 20, 2019.


(3)	Fair value approximates carrying value because the credit facilities have variable interest rates based on selected short term market rates.

On August 20, 2019, the Company entered into a $450 million senior unsecured revolving credit facility with Citibank, as administrative agent and issuing bank, and RBC Capital Markets and BMO Capital Markets Corp. as joint lead arrangers and joint book runners (the “Credit Facility”). Subject to certain conditions, the Company may borrow up to an additional $150 million under the Credit Facility. The Credit Facility has a maturity day of August 22, 2022. The previous revolving credit facility with Citibank, which had a maturity date of October 15, 2019, was terminated. Upon entry into the Credit Facility, the Company made an initial drawdown of $210 million under the Credit Facility to fully repay the $210 million outstanding under its existing credit facility. The Company paid down $35 million of the amount outstanding of the Credit Facility during the third quarter.

Borrowings under the Credit Facility bear interest, at the Company’s option, at either the per annum rate equal to (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the one month Adjusted LIBO Rate plus 1.0%, plus, in each case an additional amount based on its credit rating or (b) the London interbank offered rate for a period, at the Company’s election, equal to one, two, three or six months plus an additional amount ranging from 1.125% to 2.00%, with such additional amount based on its credit rating. In addition, the Company is charged a commitment fee based on the average daily unused portion of the Credit Facility at a per annum rate ranging from 0.125% to 0.45%, with such amount based on the Company’s credit rating.

Moody’s Investor Service, Inc. and Standard & Poor’s have each assigned an investment-grade rating to the Company’s senior, unsecured long-term indebtedness. As a result of the assignment of the credit ratings, the Company’s interest rate on outstanding borrowings was set at LIBOR plus 1.50% and the commitment fee on the unused portion of the revolving credit facility was set at 0.20%. Under the Credit Facility, the ratio of the third-party borrowings to trailing twelve months Adjusted EBITDA cannot exceed 3.0x, and the interest coverage ratio must not be less than 4.0x.