NOTE 10 – LONG-TERM DEBT AND CAPITAL LEASES

Long-term debt and capital lease obligations consisted of the following at June 30:


(in thousands)	2011			2010

7.2% Senior Unsecured Notes due 2012 net of discount of $0.1 million and $0.2 million for 2011 and 2010, respectively. Also including interest rate swap adjustments of $6.1 million and $12.1 million in 2011 and 2010, respectively	$	305,954		$	311,849

Capital leases with terms expiring through 2015 at 2.3% to 2.8% in 2011 and 2.0% to 4.7% in 2010		3,113			6,020
Other		156			345

Total debt and capital leases		309,223			318,214

Less current maturities:
Long-term debt		(306,032	)		(133	)
Capital leases		(1,272	)		(3,406	)

Total current maturities		(307,304	)		(3,539	)

Long-term debt and capital leases, less current maturities	$	1,919		$	314,675

Senior Unsecured Notes On June 19, 2002, we issued $300 million of 7.2 percent Senior Unsecured Notes due 2012 (Senior Unsecured Notes). Interest is payable semi-annually on June 15 and December 15 of each year. The Senior Unsecured Notes contain covenants that restrict our ability to create liens, enter into sale-leaseback transactions or certain consolidations or mergers, or sell all or substantially all of our assets. These notes have been reclassified to current maturities of long-term debt as of June 30, 2011. The repayment of this debt is expected to be financed in due course through a new corporate bond issuance.

2010 Credit Agreement On June 25, 2010 we entered into a five-year, multi-currency, revolving credit facility (2010 Credit Agreement) that extends to June 2015. This agreement replaces the prior credit facility that was scheduled to mature in March 2011. The 2010 Credit Agreement permits revolving credit loans of up to $500 million for working capital, capital expenditures and general corporate purposes. The 2010 Credit Agreement allows for borrowings in U.S. dollars, euro, Canadian dollars, pound sterling and Japanese yen. Interest payable under the 2010 Credit Agreement is based upon the type of borrowing under the facility and may be (1) LIBOR plus an applicable margin, (2) the greater of the prime rate or the Federal Funds effective rate plus an applicable margin, or (3) fixed as negotiated by us.

The 2010 Credit Agreement requires us to comply with various restrictive and affirmative covenants, including two financial covenants: a maximum leverage ratio and a minimum consolidated interest coverage ratio (as those terms are defined in the agreement). We were in compliance with these financial covenants as of June 30, 2011. We had no borrowings outstanding under the 2010 Credit Agreement as of June 30, 2011 or 2010.

Borrowings under the 2010 Credit Agreement are guaranteed by our significant domestic subsidiaries.

Future principal maturities of long-term debt are $306.0 million and $0.1 million, respectively, in 2012 and 2013.

Future minimum lease payments under capital leases for the next five years and thereafter in total are as follows:


(in thousands)

2012	$	1,392
2013		1,111
2014		274
2015		728
2016		—
After 2016		—

Total future minimum lease payments		3,505
Less amount representing interest		(392	)

Amount recognized as capital lease obligations	$	3,113

Our collateralized debt at June 30, 2011 and 2010 was comprised of industrial revenue bond obligations of $0.2 million and $0.3 million, respectively, and the capitalized lease obligations of $3.1 million and $6.0 million, respectively. The underlying assets collateralize these obligations.