Debt

12 Months Ended

Dec. 31, 2019

Debt maturing within one year:

Debt maturing within one year consists of the following:


	December 31,
(in Millions)	2019		2018
Short-term foreign debt ⁽¹⁾	$	144.9	$	106.5
Commercial paper	—		55.2
Total short-term debt	$	144.9	$	161.7
Current portion of long-term debt	82.8		386.0
Short-term debt and current portion of long-term debt	$	227.7	$	547.7

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(1) At December 31, 2019, the average effective interest rate on the borrowings was 16.3 percent.

Long-term debt:

Long-term debt consists of the following:


(in Millions)	December 31, 2019							December 31,
		Interest Rate Percentage		Maturity Date			2019			2018
Pollution control and industrial revenue bonds (less unamortized discounts of $0.2 and $0.2, respectively)	1.85% - 6.45%		2021 - 2032		$	51.6		$	51.6
Senior notes (less unamortized discounts of $1.3 and $0.8, respectively)	3.20% - 4.50%		2022 - 2049		2,198.7			999.2

2017 Term Loan Facility	3.0%		2022		800.0			1,400.0
Revolving Credit Facility ⁽¹⁾	4.3%		2024		—			—

Foreign debt	0% - 7.2%		2021 - 2024		83.8			89.1
Debt issuance cost					(20.2)			(8.9)
Total long-term debt					$	3,113.9		$	2,531.0
Less: debt maturing within one year					82.8			386.0
Total long-term debt, less current portion					$	3,031.1		$	2,145.0

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(1)Letters of credit outstanding under the Revolving Credit Facility totaled $217.0 million and available funds under this facility were $1,283.0 million at December 31, 2019.

Senior Notes

On September 20, 2019, we issued $500 million aggregate principal amount of 3.200% Senior Notes due 2026, $500 million aggregate principal amount 3.450% Senior Notes due 2029, and $500 million aggregate principal amount 4.500% Senior Notes due 2049. A portion of the net proceeds from the offering were used for paydowns of both outstanding commercial paper and 2017 Term Loan Facility balances and for general corporate purposes. We used the remaining net proceeds of approximately $300 million to redeem all of our Senior notes that matured in the fourth quarter of 2019.

Fees incurred to secure the senior notes have been deferred and will be amortized over the terms of the arrangement.

See Note 19 for details on the interest rate swap settlement which will also be amortized over the terms of the arrangement.

Revolving Credit Facility

On May 17, 2019, we entered into an amended and restated credit agreement (the "Revolving Credit Agreement"). The unsecured Revolving Credit Agreement provides for a $1.5 billion revolving credit facility, $400 million of which is available for the issuance of letters of credit for the account of the Revolving Borrowers and $50 million of which is available for swing loans to certain of the Revolving Borrowers, with an option, subject to certain conditions and limitations, to increase the aggregate amount of the revolving credit commitments to $2.25 billion (the “Revolving Credit Facility”). The current termination date of the Revolving Credit Facility is May 17, 2024.

Revolving loans under the Revolving Credit Agreement will bear interest at a floating rate, which will be a base rate or a Eurocurrency rate equal to the London interbank offered rate for the relevant interest period, plus, in each case, an applicable margin, as determined in accordance with the provisions of the Revolving Credit Agreement. The base rate will be the highest of: the rate of interest announced publicly by Citibank, N.A. in New York, New York from time to time as its “base rate”; the federal funds effective rate plus 1/2 of 1%; and the Eurocurrency rate for a one-month period plus 1%. The Company is required to pay a facility fee on the average daily amount (whether used or unused) of each Revolving Credit Lender’s revolving credit commitment from the effective date for such Revolving Credit Lender until the termination date of such Revolving Credit Lender at a rate per annum equal to an applicable percentage in effect from time to time for the facility fee, as determined in accordance with the provisions of the Revolving Credit Agreement. The initial facility fee is 0.125% per annum. The applicable margin and the facility fee are subject to adjustment as provided in the Revolving Credit Agreement.

The Revolving Credit Agreement contains customary financial and other covenants, including a maximum leverage ratio and minimum interest coverage ratio.

Fees incurred to secure the Revolving Credit Facility have been deferred and will be amortized over the term of the arrangement.

Maturities of long-term debt

Maturities of long-term debt outstanding, excluding discounts, at December 31, 2019, are $82.8 million in 2020, $1.6 million in 2021, $1,100.9 million in 2022, $0.3 million in 2023, $400.0 million in 2024 and $1,550.0 million thereafter.

Covenants

Among other restrictions, the Revolving Credit Facility and 2017 Term Loan Facility contain financial covenants applicable to FMC and its consolidated subsidiaries related to leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Our actual leverage for the four consecutive quarters ended December 31, 2019 was 2.8 which is below the maximum leverage of 4.0. By the end of 2020, the maximum leverage ratio will step down to 3.5 in accordance with the provisions of the Revolving Credit Facility and the 2017 Term Loan Facility. Our actual interest coverage for the four consecutive quarters ended December 31, 2019 was 7.6 which is above the minimum interest coverage of 3.5. We were in compliance with all covenants at December 31, 2019.

Compensating Balance Agreements

We maintain informal credit arrangements in many foreign countries. Foreign lines of credit, which include overdraft facilities, typically do not require the maintenance of compensating balances, as credit extension is not guaranteed but is subject to the availability of funds.