Long Term Debt and Financing Arrangements

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Long Term Debt and Financing Arrangements

Long-Term Debt and Financing Arrangements

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

	Maturity	September 30, 2020		December 31, 2019
Senior notes at 3.625%	2022	$	299.1	$	298.8
Senior notes at 3.35%	2026	396.3		395.7
Senior notes at 3.15%	2027	296.3		295.9
Senior notes at 3.50%	2028	444.6		444.0
Term loan, net of current portion of $0.0 and $34.4, respectively	2023	—		71.6
2018 Credit Facility	2023	—		—
TOTAL LONG-TERM DEBT(a)		$	1,436.3	$	1,506.0

^(a)Long-term debt is presented net of debt issuance costs and unamortized discounts.

The Company has a five-year revolving credit agreement (the "2018 Credit Facility") with a syndicate of lenders that provides a $750 million committed revolving credit facility. Commitments under the 2018 Credit Facility may be increased (subject to certain conditions) to an aggregate amount not to exceed $1.25 billion. The interest rate applicable to borrowings under the 2018 Credit Facility is generally either the adjusted LIBOR plus an applicable margin (determined by a ratings-based grid) or the alternate base rate. The single financial covenant in the 2018 Credit Facility requires that total debt not exceed 65% of total capitalization as of the last day of each fiscal quarter of the Company. The 2018 Credit Facility expires in February 2023.

In March 2020, the Company borrowed $100.0 million and in April 2020, the Company borrowed an additional $125.0 million under the 2018 Credit Facility. In the second quarter of 2020, the Company repaid $100.0 million of such borrowings. In July 2020, the Company repaid the remaining $125.0 million of outstanding borrowings, using a combination of cash on hand and proceeds from commercial paper. There were no borrowings outstanding under the 2018 Credit Facility at September 30, 2020. The Company had $750.0 million of borrowing capacity under the 2018 Credit Facility at September 30, 2020.

During the third quarter of 2020, the Company repaid in full the principal outstanding of the Term Loan. The Company paid $90.7 million in cash, composed of $90.6 million of principal and $0.1 million of accrued interest, also resulting in a $0.2 million loss on extinguishment of debt (recorded within interest expense, net in the Condensed Consolidated Statement of Income) primarily related to the write-off of capitalized debt issuance costs.

The Company had $21.9 million short-term debt outstanding at September 30, 2020, which consisted primarily of commercial paper. At December 31, 2019, the Company had $65.4 million of short-term debt outstanding.