Debt

12 Months Ended

Dec. 31, 2020

The following table sets forth the Company’s long-term debt at December 31, (in millions):


	Maturity	2020		2019
Senior notes at 3.625%	2022	$	299.2	$	298.8
Senior notes at 3.35%	2026	396.5		395.7
Senior notes at 3.15%	2027	296.4		295.9
Senior notes at 3.50%	2028	444.8		444.0
Term loan, net of current portion of $0 million and $34.4 million, respectively	2023	—		71.6
2018 Credit Facility	2023	—		—
TOTAL LONG-TERM DEBT(a)		$	1,436.9	$	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 Company has been in compliance of this covenant at all required testing dates. 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 December 31, 2020. The Company had $750.0 million of borrowing capacity under the 2018 Credit Facility at December 31, 2020. There were also no borrowings outstanding at December 31, 2019.

In February 2018, the Company completed a public offering of $450 million of senior, unsecured, notes maturing in February 2028 and bearing interest at a fixed rate of 3.50% (the "2028 Notes"). Net proceeds from the issuance of the 2028 Notes were $442.6 million after deducting the discount on such notes and offering expenses paid by the Company. The 2028 Notes are callable at any time at specified prices and are only subject to accelerated payment prior to maturity upon customary events of a default under the indenture governing the 2028 Notes, as modified by the supplemental indenture creating such notes, or upon a change in control triggering event as defined in such indenture.

In January 2018, the Company entered into the Term Loan Agreement. The Term Loan Agreement provided the Company, with the ability to borrow, in a single borrowing on the Aclara acquisition date, up to $500 million on an unsecured basis to partially finance the Aclara acquisition (the "Term Loan"). On February 2, 2018, the Company borrowed $500 million under the Term Loan Agreement. The interest rate applicable to borrowings under the Term Loan Agreement is generally either adjusted LIBOR plus an applicable margin (determined by a ratings based grid) or the alternate base rate. The principal amount of borrowings under the Term Loan Agreement amortized in equal quarterly installments of 5% per year in year one, 5% per year in year two, 7.5% per year in year three, 10% per year in year four, 10% per year in year five, and any remaining borrowings under the Term Loan Agreement were due and payable in full in February 2023. The Company may also make principal payments in excess of the amortization schedule at its discretion. Proceeds of the 2028 Notes and Term Loan were used to fund the Aclara acquisition.

In December 2019, the Company made discretionary payments of $200 million against the outstanding principal amount of the Term Loan. During the third quarter of 2020, the Company repaid in full the remaining principal balance of the Term Loan of $90.6 million as well as $0.1 million of accrued interest. The prepayment resulted in a $0.2 million loss on extinguishment of debt (recorded within interest expense in the Consolidated Statement of Income) primarily related to the write-off of capitalized debt issuance costs.

In August 2017, the Company completed a public debt offering of $300 million of long-term unsecured, unsubordinated notes maturing in August 2027 and bearing interest at a fixed rate of 3.15% (the "2027 Notes"). Net proceeds from the issuance were $294.6 million after deducting the discount on the notes and offering expenses paid by the Company.

In March 2016, the Company completed a public debt offering of $400 million of long-term unsecured, unsubordinated notes maturing in March 2026 and bearing interest at a fixed rate of 3.35% (the "2026 Notes"). Net proceeds from the issuance were $393.4 million after deducting the discount on the notes and offering expenses paid by the Company.

In November 2010, the Company completed a public debt offering for $300 million of long-term unsecured, unsubordinated notes maturing in November 2022 (“2022 Notes”) and bearing interest at a fixed rate of 3.625%. Prior to the issuance of the 2022 Notes, the Company entered into a forward interest rate lock which resulted in a $1.6 million loss. This amount was recorded in Accumulated other comprehensive loss, net of tax, and is being amortized over the life of the 2022 Notes.

The 2022 Notes, 2026 Notes, 2027 Notes and 2028 Notes, are all fixed rate indebtedness, are callable at any time with a make whole premium and are only subject to accelerated payment prior to maturity in the event of a default (including as a result of the Company's failure to meet certain non-financial covenants) under the indenture governing the notes, as modified by the supplemental indentures creating such notes, or upon a change in control triggering event as defined in such indenture. The Company was in compliance with all non-financial covenants as of December 31, 2020.

At December 31, 2020 and 2019, the Company had $153.1 million and $65.4 million, respectively, of short-term debt outstanding composed of:

◦$150.0 million and $26.0 million of commercial paper borrowings outstanding at December 31, 2020 and 2019, respectively.

◦$34.4 million at December 31, 2019, of long-term debt classified as short-term within current liabilities in the Consolidated Balance Sheets, reflecting maturities within the next twelve months relating to our borrowing under the now fully repaid Term Loan Agreement.

◦$3.1 million at December 31, 2020 and $5.0 million at December 31, 2019, respectively, of borrowings to support our international operations in China.

Other information related to short-term debt at December 31, is summarized below:


	2020		2019
Weighted average interest rate on short-term debt:
At year end	0.32	%	2.59	%

The Company also maintains other lines of credit that are primarily used to support the issuance of letters of credit. Interest rates and other terms of borrowing under these lines of credit vary from country to country, depending on local market conditions. At December 31, 2020 and 2019 these lines totaled $32.1 million and $23.0 million, respectively, of which $19.3 million and $15.7 million was utilized to support letters of credit and the remaining amount was unused. The annual commitment fees associated with these lines of credit are not material.

Interest and fees paid related to total indebtedness was $54.4 million, $62.8 million and $59.5 million in 2020, 2019 and 2018, respectively.