Debt and Interest

3 Months Ended

Mar. 31, 2013

Debt and Interest

Debt and Interest

5. Debt and Interest

	March 31		December 31
(millions)	2013		2012
	(unaudited)
Short-term debt
Commercial paper	$	275.0	$	593.7
Notes payable	53.7		44.5
Long-term debt, current maturities	168.4		167.6
Total	$	497.1	$	805.8

As of March 31, 2013, the company had in place a $1.5 billion multi-year credit facility, which expires in September 2016 and a $500 million, 364 day credit facility, which expires in August 2013. The credit facilities support the company’s U.S. commercial paper program, which, as shown in the previous table, had $275 million and $594 million outstanding as of March 31, 2013 and December 31, 2012, respectively.

Long-term debt
Description / 2013 Principal Amount
Series A private placement senior euro notes (125 million euro)	$	163.2		$	162.3
Series B private placement senior euro notes (175 million euro)	228.5			227.3
Seven year 2008 senior notes ($250 million)	249.5			249.4
Series A private placement senior notes ($250 million)	250.0			250.0
Series B private placement senior notes ($250 million)	250.0			250.0
Three year 2011 senior notes ($500 million)	499.8			499.8
Five year 2011 senior notes ($1.25 billion)	1,248.2			1,248.1
Ten year 2011 senior notes ($1.25 billion)	1,249.3			1,249.3
Thirty year 2011 senior notes ($750 million)	742.6			742.6
Three year 2012 senior notes ($500 million)	499.8			499.8
Five year 2012 senior notes ($500 million)	499.6			499.6
Capital lease obligations	13.7			13.8
Other	11.3			11.7
Total debt	5,905.5			5,903.7
Long-term debt, current maturities	(168.4		)	(167.6		)
Total long-term debt	$	5,737.1		$	5,736.1

In November 2012, the company entered into a $900 million term loan credit agreement with various banks. Under the agreement, which had not been drawn upon as of March 31, 2013, the term loan will bear interest at a floating base rate plus a credit rating based margin.

In April 2013, in connection with the close of the Champion transaction, the company initiated term loan borrowings of $900 million. The term loan can be repaid in part or in full at any time without penalty, but in any event must be repaid in full by the third anniversary date of the funding date. Further information related to the acquisition of Champion is included in Note 3.

Interest expense and interest income recognized during the first quarter ended 2013 and 2012 were as follows:

	First Quarter Ended
	March 31
(millions)	2013			2012
Interest expense	$	65.0		$	88.7
Interest income	(3.5		)	(2.6		)
Interest expense, net	$	61.5		$	86.1

The decrease in interest expense was driven primarily by the inclusion of an $18.2 million loss on extinguishment of Nalco debt, recognized in the first quarter of 2012.