LONG-TERM DEBT AND BORROWINGS UNDER SHORT-TERM CREDIT AGREEMENTS



	December 31,
Long-term Debt	2011			2010
7.49% senior note, unsecured, due in annual installments of $14,286 beginning in July 2005 through July 2011	$	—		$	14,286
Variable-rate lease arrangement, secured by facilities, due July 2013	27,715			27,715
6.59% senior note, unsecured, due in semiannual installments of $3,750 beginning in October 2003 through April 2013	11,250			18,750
7.36% senior note, unsecured, due in semiannual installments of $3,095 beginning in May 2001 through November 2010, with a final payment of $3,094 due in May 2011	—			3,094
6.65% senior note, unsecured, due in annual installments of $3,636 beginning in June 2003 through June 2013	7,273			10,909
5.57% note, secured by facility, due in monthly installments of principal and interest of $32 through December 2014, with a final payment of $2,000 due in January 2015	—			2,977
5.79% note, secured by facility, due in monthly installments of principal and interest of $37 through October 2013, with a final payment of $3,444 due November 2013	—			4,083
6.48% capital lease, secured by equipment, due in monthly installments of principal and interest of $47 beginning in January 2007 through December 2011	—			544
Variable-rate note, secured by facilities, due in monthly installments of $36 through October 2015, with a final payment of $6,583 due in November 2015	—			8,664
2.38% to 4.97% capital leases, secured by equipment, various maturities	5,597			6,028
	$	51,835		$	97,050
Less current portion	(41,490		)	(32,191		)
Long-term Debt	$	10,345		$	64,859



Long-term Debt matures as follows:
2012	$	41,490
2013	9,410
2014	872
2015	63
2016	—
After 2016	—
	$	51,835

The net book value of property securing various long-term debt instruments was $16,847 and $40,429 at December 31, 2011 and 2010, respectively.

In December 2011, the Company notified the independent lessor of its intent to prepay and terminate the variable-rate lease arrangement due in July 2013. The Company expects to liquidate the $27,715 balance owed on the lease arrangement during the first quarter of 2012. As a result, the Company reclassified the $27,715 variable-rate lease arrangement from long-term debt to current portion of long-term debt as of December 31, 2011.

The Company had a revolving credit agreement with a group of thirteen banks at an interest rate based on the London Interbank Offered Rate (“LIBOR”) that consisted of an unsecured, $200,000 five-year facility that was to expire in May 2012. On September 28, 2011, the Company and Graybar Canada Limited, the Company's Canadian operating subsidiary (“Graybar Canada”), entered into a new unsecured, five-year, $500,000 revolving credit facility maturing in September 2016 with Bank of America, N.A. and other lenders named therein, which includes a combined letter of credit ("L/C") sub-facility of up to $50,000, a US swing line loan facility of up to $50,000, and a Canadian swing line loan facility of up to $20,000 (the "Credit Agreement"). The Credit Agreement also includes a $100,000 sublimit (in US or Canadian dollars) for borrowings by Graybar Canada and contains an accordion feature, which allows the Company to request increases in the aggregate borrowing commitments of up to $200,000. This Credit Agreement replaced the revolving credit agreement that had been due to expire in May 2012, which was terminated upon the closing of the new revolving credit facility.

Interest on the Company's borrowings under the revolving credit facility is based on, at the borrower's election, either (i) the base rate (as defined in the Credit Agreement), or (ii) LIBOR, in each case plus an applicable margin, as set forth in the pricing grid detailed in the Credit Agreement and described below. In connection with any borrowing, the applicable borrower also selects the term of the loan, up to six months, or an automatically renewing term with the consent of the lenders. Swing line loans, which are short-term loans, bear interest at a rate based on, at the borrower's election, either the base rate or on the daily floating Eurodollar rate. In addition to interest payments, there are also certain fees and obligations associated with borrowings, swing line loans, letters of credit, and other administrative matters.

The obligations of Graybar Canada under the new revolving credit facility are secured by the guaranty of the Company and any material US subsidiaries of the Company. Under no circumstances will Graybar Canada use its borrowings to benefit Graybar or its operations, including without limitation, the repayment of any of the Company's obligations under the revolving credit facility.

The Credit Agreement provides for a quarterly commitment fee ranging from 0.2% to 0.35% per annum, subject to adjustment based upon the Company's consolidated leverage ratio for a fiscal quarter, and letter of credit fees ranging from 1.05% to 1.65% per annum payable quarterly, also subject to such adjustment. Borrowings can be either base rate loans plus a margin ranging from 0.05% to 0.65% or LIBOR loans plus a margin ranging from 1.05% to 1.65%, subject to adjustment based upon the Company's consolidated leverage ratio. Availability under the Credit Agreement is subject to the accuracy of representations and warranties, the absence of an event of default, and, in the case of Canadian borrowings denominated in Canadian dollars, the absence of a material adverse change in the national or international financial markets, which would make it impracticable to lend Canadian dollars.

The Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including limitations on the Company and its subsidiaries with respect to indebtedness, liens, changes in the nature of business, investments, mergers and acquisitions, the issuance of equity securities, the disposition of assets and the dissolution of certain subsidiaries, transactions with affiliates, restricted payments (subject to incurrence tests, with certain exceptions), as well as securitizations and factoring transactions. There are also maximum leverage ratio and minimum interest coverage ratio financial covenants to which the Company will be subject during the term of the Credit Agreement.

The Credit Agreement also provides for customary events of default, including a failure to pay principal, interest or fees when due, failure to comply with covenants, the fact that any representation or warranty made by any of the credit parties is materially incorrect, the occurrence of an event of default under certain other indebtedness of the Company and its subsidiaries (including existing senior notes), the commencement of certain insolvency or receivership events affecting any of the credit parties, certain actions under ERISA, and the occurrence of a change in control of any of the credit parties (subject to certain permitted transactions as described in the Credit Agreement). Upon the occurrence of an event of default, the commitments of the lenders may be terminated and all outstanding obligations of the credit parties under the Credit Agreement may be declared immediately due and payable.

At December 31, 2010, the Company had a $100,000 trade receivable securitization program that expired in accordance with its terms on October 7, 2011. As a result of this expiration, the security interest in the trade receivables granted by GCC to the commercial paper conduit was terminated. There were no borrowings outstanding under the trade receivable securitization program at December 31, 2010.

Short-term borrowings of $42,562 outstanding at December 31, 2011 were drawn under the revolving credit facility. Short-term borrowings outstanding at December 31, 2010 totaled $19,695 and were drawn by Graybar Canada against a bank line of credit secured by all personal property of that subsidiary. This bank line of credit was terminated on December 5, 2011 and replaced by the $100,000 borrowing sublimit now available to Graybar Canada under the revolving credit facility.

Short-term borrowings outstanding during the years ended December 31, 2011 and 2010 ranged from a minimum of $13,800 and $10,786 to a maximum of $91,548 and $20,962, respectively. The average daily amount of borrowings outstanding under short-term credit agreements during 2011 and 2010 amounted to approximately $52,000 and $16,000 at weighted-average interest rates of 1.86% and 2.94%, respectively. The weighted-average interest rate for amounts outstanding at December 31, 2011 was 2.31%.

At December 31, 2011, the Company had available to it unused lines of credit amounting to $457,438, compared to $307,308 at December 31, 2010. These lines are available to meet the short-term cash requirements of the Company and certain committed lines of credit have annual fees of up to 35 basis points (0.35%) and 67 basis points (0.67%) of the committed lines of credit as of December 31, 2011 and 2010, respectively.

The carrying amount of the Company’s outstanding long-term, fixed-rate debt exceeded its fair value by $925 and $2,815 at December 31, 2011 and 2010, respectively. The fair value of the long-term, fixed-rate debt is estimated by using yields obtained from independent pricing sources for similar types of borrowings. The fair value of the Company’s variable-rate short- and long-term debt approximates its carrying value at December 31, 2011 and 2010, respectively.

The revolving credit agreement and certain other note agreements contain various affirmative and negative covenants. The Company is also required to maintain certain financial ratios as defined in the agreements. The Company was in compliance with all covenants as of December 31, 2011 and 2010.