NOTE 8—FINANCING ARRANGEMENTS

Long-term debt consists of the following (in thousands):

September 30,	2015			2014

Series A senior unsecured notes payable to a group of insurance companies, interest fixed at 3.35%	$	50,000		$	50,000
Series B senior unsecured notes payable to a group of insurance companies, interest fixed at 3.35%	50,000			50,000
Series C senior unsecured notes payable to a group of insurance companies, interest fixed at 3.70%	25,000			—
Mortgage note from a U.K. financial institution, with quarterly installments of principal and interest at 6.48%	1,705			2,390

	126,705			102,390
Less current portion	(525		)	(563		)

	$	126,180		$	101,827

Maturities of long-term debt for each of the five years in the period ending September 30, 2020, are as follows: 2016 — $0.5 million; 2017 — $0.5 million; 2018 — $0.5 million; 2019 — $0.1 million; 2020 — none.

Interest paid amounted to $4.8 million, $4.1 million and $3.7 million in 2015, 2014 and 2013, respectively. Interest paid in 2013 included an interest payment of $0.6 million incurred in connection with a legal settlement.

In March 2013, we entered into a note purchase and private shelf agreement pursuant to which we issued $100.0 million of senior unsecured notes, bearing interest at a rate of 3.35% and maturing on March 12, 2025. Interest on these notes is due semi-annually and principal payments are due from 2021 through 2025. In addition, pursuant to the agreement, on July 17, 2015 we issued additional senior unsecured notes in an aggregate principal amount of $25.0 million. These additional notes will also mature on March 12, 2025 and will bear an interest rate of 3.70%. All other terms, including the principal and interest payment dates are the same as the notes issued in March 2013.

We have a committed five-year revolving credit agreement (Revolving Credit Agreement) with a group of financial institutions in the amount of $200 million, which expires in May 2017. The available line of credit is reduced by any letters of credit issued under the Revolving Credit Agreement. As of September 30, 2015, there were borrowings totaling $60.0 million under this agreement and there were letters of credit outstanding totaling $21.8 million, which reduce the available line of credit to $118.2 million. Borrowings under the agreement bear a variable rate of interest which is calculated based upon the U.S. dollar LIBOR rate plus a contractually defined credit spread that is based upon the tenor of the specific borrowing. At September 30, 2015 the weighted average interest rate on outstanding borrowings under the Revolving Credit Agreement was 1.7%.

We have a secured letter of credit facility agreement with a bank (Secured Letter of Credit Facility) which is cancellable by us at any time upon the completion of certain conditions to the satisfaction of the bank. At September 30, 2015 there were letters of credit outstanding under this agreement of $58.5 million. Restricted cash at September 30, 2015 of $69.2 million was held on deposit in the U.K. as collateral in support of this Secured Letter of Credit Facility. We are required to leave the cash in the restricted account so long as the bank continues to maintain associated letters of credit under the facility. The maximum amount of letters of credit currently allowed by the facility is $62.8 million, and any increase above this amount would require bank approval and additional restricted funds to be placed on deposit. We may choose at any time to terminate the facility and move the associated letters of credit to another credit facility. Letters of credit outstanding under the Secured Letter of Credit Facility do not reduce the available line of credit under the Revolving Credit Agreement.

As of September 30, 2015, we had letters of credit and bank guarantees outstanding totaling $76.0 million, including the letters of credit outstanding under the Revolving Credit Agreement and the Secured Letter of Credit Facility, which guarantee either our performance or customer advances under certain contracts. In addition, we had financial letters of credit outstanding totaling $16.1 million as of September 30, 2015, which primarily guarantee our payment of certain self-insured liabilities. We have never had a drawing on a letter of credit instrument, nor are any anticipated; therefore, we estimate the fair value of these instruments to be zero.

We maintain short-term borrowing arrangements in New Zealand and Australia totaling $0.5 million New Zealand dollars (equivalent to approximately $0.3 million) and $3.0 million Australian dollars (equivalent to approximately $2.1 million) to help meet the short- term working capital requirements of our subsidiaries in those countries. At September 30, 2015, no amounts were outstanding under these borrowing arrangements.

The terms of certain of our lending and credit agreements include provisions that require and/or limit, among other financial ratios and measurements, the permitted levels of debt, coverage of cash interest expense, and under certain circumstances, payments of dividends or other distributions to shareholders. As of September 30, 2015 these agreements do not restrict such distributions to shareholders.

Our self-insurance arrangements are limited to certain workers’ compensation plans, automobile liability and product liability claims. Under these arrangements, we self-insure only up to the amount of a specified deductible for each claim. Self-insurance liabilities included in other current liabilities on the balance sheet amounted to $8.8 million and $9.1 million as of September 30, 2015 and 2014, respectively.