Debt and Interest

6 Months Ended

Jun. 30, 2013

Debt and Interest

Debt and Interest

5.  Debt and Interest

	June 30		December 31
(millions)	2013		2012
	(unaudited)
Short-term debt
Commercial paper	$	642.8	$	593.7
Notes payable	61.7		44.5
Long-term debt, current maturities	168.4		167.6
Total	$	872.9	$	805.8

As of June 30, 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 $643 million and $594 million outstanding as of June 30, 2013 and December 31, 2012, respectively.

(millions)	June 30 2013			December 31 2012
	(unaudited)
Long-term debt
Description / 2013 Principal Amount
Series A private placement senior euro notes (125 million euro)	$	162.5		$	162.3
Series B private placement senior euro notes (175 million euro)	227.5			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)	499.9			499.8
Five year 2011 senior notes ($1.25 billion)	1,248.3			1,248.1
Ten year 2011 senior notes ($1.25 billion)	1,249.3			1,249.3
Thirty year 2011 senior notes ($750 million)	742.7			742.6
Three year 2012 senior notes ($500 million)	499.8			499.8
Five year 2012 senior notes ($500 million)	499.7			499.6
Term loan ($900 million)	900.0			—
Capital lease obligations	13.7			13.8
Other	10.8			11.7
Total debt	6,803.7			5,903.7
Long-term debt, current maturities	(168.4		)	(167.6		)
Total long-term debt	$	6,635.3		$	5,736.1

In April 2013, in connection with the close of the Champion transaction, the company initiated term loan borrowings of $900 million. Under the agreement, the term loan bears interest at a floating base rate plus a credit rating based margin. 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 April 2016. Further information related to the acquisition of Champion is included in Note 3.

The company is in compliance with its debt covenants as of June 30, 2013.

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

	Second Quarter Ended						Six Months Ended
	June 30						June 30
(millions)	2013			2012			2013			2012
Interest expense	$	68.8		$	66.1		$	133.8		$	154.8
Interest income	(2.6		)	(2.2		)	(6.1		)	(4.8		)
Interest expense, net	$	66.2		$	63.9		$	127.7		$	150.0

The decrease in interest expense for the six months ended June 30, 2013 was driven primarily by the inclusion of an $18.2 million loss on extinguishment of Nalco debt, recognized in the first quarter of 2012.