Debt

12 Months Ended

Sep. 30, 2016

15. Debt

The tables below summarize our outstanding debt at 30 September 2016 and 2015:

Total Debt

30 September		2016		2015
Short-term borrowings	$	935.8	$	1,494.3
Current portion of long-term debt		371.3		435.6
Long-term debt		4,918.1		3,949.1
Total Debt	$	6,225.2	$	5,879.0

Short-term Borrowings

30 September		2016		2015
Bank obligations	$	133.1	$	234.3
Commercial paper		802.7		1,260.0
Total Short-term Borrowings	$	935.8	$	1,494.3

The weighted average interest rate of short-term borrowings outstanding at 30 September 2016 and 2015 was 1.1% and .8%, respectively.

Cash paid for interest, net of amounts capitalized, was $121.1 in 2016, $97.5 in 2015, and $132.4 in 2014.

Long-term Debt
30 September		Fiscal Year Maturities		2016		2015
Payable in U.S. Dollars
	Debentures
	8.75%	2021	$	18.4	$	18.4
	Medium-term Notes (weighted average rate)
	Series D 7.3%	2016		-		32.1
	Series E 7.6%	2026		17.2		17.2
	Senior Notes
	Note 2.0%	2016		-		350.0
	Note 1.2%	2018		400.0		400.0
	Note 4.375%	2019		400.0		400.0
	Note 3.0%	2022		400.0		400.0
	Note 2.75%	2023		400.0		400.0
	Note 3.35%	2024		400.0		400.0
	Versum Financing
	Senior Note 5.5%	2024		425.0		-
	Term Loan B 3.346%	2023		575.0		-
	Other (weighted average rate)
	Variable-rate industrial revenue bonds .68%	2035 to 2050		769.9		769.9
	Other 1.3%	2018 to 2019		25.7		35.0
Payable in Other Currencies
	Eurobonds 4.625%	2017		337.0		335.2
	Eurobonds 2.0%	2020		337.0		335.2
	Eurobonds 1.0%	2025		337.0		335.2
	Eurobonds .375%	2021		393.2		-
	Other 4.4%	2016 to 2022		53.0		161.0
Capital Lease Obligations
	United States 5.0%	2018		.5		.7
	Foreign 11.3%	2017 to 2036		9.7		1.1
Less: Unamortized Discount				(9.2)		(6.3)
Total Long-term Debt				5,289.4		4,384.7
Less: Current portion of long-term debt				(371.3)		(435.6)
Long-term Debt			$	4,918.1	$	3,949.1

Maturities of long-term debt in each of the next five years and beyond are as follows:

2017	$	371.3
2018		419.4
2019		406.6
2020		353.4
2021		416.9
Thereafter		3,321.8
Total	$	5,289.4

Various debt agreements to which we are a party also include financial covenants and other restrictions, including restrictions pertaining to the ability to create property liens and enter into certain sale and leaseback transactions. As of 30 September 2016, we are in compliance with all the financial and other covenants under our debt agreements.

We have entered into a five-year revolving credit agreement maturing 30 April 2018 with a syndicate of banks (the “2013 Credit Agreement”), under which senior unsecured debt is available to both the Company and certain of its subsidiaries. There have been subsequent amendments to the 2013 Credit Agreement, and as of 30 September 2016, the maximum borrowing capacity was $2,690.0. The 2013 Credit Agreement provides a source of liquidity for the Company and supports its commercial paper program. The Company’s only financial covenant is a maximum ratio of total debt to total capitalization no greater than 70%. No borrowings were outstanding under the 2013 Credit Agreement as of 30 September 2016.

On 1 June 2016, we issued a .375% Eurobond for €350 million ($386.9) that matures on 1 June 2021. The proceeds were used to repay a 2.0% Senior Note of $350.0 that matured on 2 August 2016.

In September 2015, we made a payment of $146.6 to redeem 3,000,000 Unidades de Fomento (“UF”) Series E 6.30% Bonds due 22 January 2030 that had a carrying value of $130.0 and resulted in a net loss of $16.6 ($14.2 after-tax, or $.07 per share). The loss is reflected on the consolidated income statements as “Loss on extinguishment of debt.”

Additional commitments totaling $51.3 are maintained by our foreign subsidiaries, all of which was borrowed and outstanding at 30 September 2016.

Versum Financing

On 30 September 2016, in connection with the spin-off, Versum entered into certain financing transactions. Versum continued to maintain the financing, further described below, subsequent to the spin-off which occurred on 1 October 2016. Refer to Note 3, Materials Technologies Separation, for additional information on the spin-off.

Versum issued $425.0 aggregate principal amount of senior unsecured notes (the “Notes”). The Notes bear interest at a fixed interest rate of 5.50% per annum and will mature on September 30, 2024. In addition, Versum entered into a credit agreement providing for (i) a senior secured first lien term loan B facility in an aggregate principal amount of $575.0 (the “Term Facility”) and (ii) a senior secured first lien revolving credit facility in an aggregate principal amount of $200.0 (the “Revolving Facility”). Borrowings under the Term Facility bear interest at a rate per annum of, at Versum’s option, LIBOR, subject to a minimum floor of 0.75%, plus a margin of 2.50% or an alternate base rate, subject to a minimum floor of 1.75%, plus a margin of 1.50%. Borrowings under the Revolving Facility bear interest initially at a rate per annum of, at Versum’s option, LIBOR plus a margin of 2.00% or an alternate base rate plus a margin of 1.00%. The Term Facility amortizes in equal quarterly installments in aggregate annual amounts equal to 1.00% of the original principal amount of the Term Facility, with the balance payable on 30 September 2023. The Revolving Facility matures on 30 September 2021. Lenders under the Revolving Facility have a maximum first lien net leverage ratio covenant (total debt net of cash on hand to total adjusted EBITDA) of 3.25:1.00 and certain other customary covenants. On 30 September 2016, the Term Facility was fully drawn and no borrowings were outstanding under the Revolving Facility.