Short-Term Borrowings (Notes)

6 Months Ended

Jun. 30, 2020

16. Short-Term Borrowings

At June 30, 2020 and December 31, 2019, we had $286.4 million and $247.4 million, respectively, of short-term borrowings outstanding at the weighted average interest rates of 1.05 percent and 2.62 percent, respectively. Included in the June 30, 2020 balance, is $100.0 million in short-term debt for which we have entered into interest rate swap agreements as discussed below. We have an aggregate of $370.0 million in credit lines comprised of four unsecured bank credit facilities with four financial institutions, with $220.0 million in total available credit, and a Revolver with five participating Lenders totaling $150.0 million. As a result of the uncertainty regarding the length of and depth of the impacts of the COVID-19 pandemic, in the second quarter of 2020, we received commitments for an additional $95.0 million of short-term debt capacity through four credit facilities that mature on October 31, 2020. These facilities have a commitment fee of 0.35 percent with an interest rate of 1.75 percent over LIBOR, to the extent we borrow under these facilities. All of these facilities expire in October 2020. The following table summarizes our short-term borrowing facilities information at June 30, 2020 and December 31, 2019:



				Outstanding borrowings at
(in thousands)	Total Facility		LIBOR Based Interest Rate	June 30, 2020		December 31, 2019		Available at June 30, 2020
Bank Credit Facility
Existing Bilateral Facilities
Committed revolving credit facility A	$	55,000	plus 0.75 percent	$	55,000	$	55,000	$	—
Committed revolving credit facility B	80,000		plus 0.75 percent	77,501		57,150		2,499
Committed revolving credit facility C	45,000		plus 0.75 percent	32,412		42,040		12,588
Committed revolving credit facility D	40,000		plus 0.85 percent	40,000		40,000		—
Committed revolving credit facility E⁽²⁾	150,000		plus 1.125 percent	80,000		50,000		70,000
Total existing bilateral facilities	370,000			284,913		244,190		85,087
Incremental Facilities
Committed revolving credit facility F	35,000		plus 1.75 percent	—		—		35,000
Committed revolving credit facility G	15,000		plus 1.75 percent	—		—		15,000
Committed revolving credit facility H	25,000		plus 1.75 percent	—		—		25,000
Committed revolving credit facility I	20,000		plus 1.75 percent	—		—		20,000
Total incremental facilities	95,000			—		—		95,000
Total short term credit facilities	$	465,000		284,913		244,190		$	180,087
Book overdrafts⁽¹⁾				1,492		3,181
Total short-term borrowing				$	286,405	$	247,371

⁽¹⁾ If presented, these book overdrafts would be funded through the bank revolving credit facilities.

⁽²⁾This committed revolving credit facility includes a restriction that our short-term borrowings, excluding any borrowings under the committed revolving credit facility, cannot exceed $350.0 million.

The availability of funds under our credit facilities is subject to conditions specified in the respective credit agreements, all of which we currently satisfy. These conditions include our compliance with financial covenants and the continued accuracy of representations and warranties contained in these agreements. We are required by the financial covenants in our revolving credit facilities to maintain, at the end of each fiscal year, a funded indebtedness ratio of no greater than 65 percent. As of June 30, 2020, we are in compliance with all of our debt covenants.

In the second quarter of 2020, we entered into interest rate swaps with notional amounts totaling $100.0 million associated with three of our short-term lines of credit through October 2020. The interest rate swaps were entered to hedge the variability in cash flows attributable to changes in the short-term borrowing rates during this period. The fixed swap rates will range between 0.2615 and 0.3875 percent for the period. Our short-term borrowing will be based on the 30-day LIBOR rate. The interest swap will be cash settled monthly as the counter-party will pay us the 30-day LIBOR rate less the fixed rate.