Financing Arrangements and Debt

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Financing Arrangements and Debt

Financing Arrangements and Debt

On May 30, 2019, the Company entered into a $500 million term loan credit facility (the New Term Credit Facility). The New Term Credit Facility was a senior unsecured guaranteed facility with an original maturity date of December 2, 2019. The covenants within the New Term Credit Facility were substantially consistent with those in the Company’s revolving credit facility (see 2018 facility below), and borrowings under the New Term Credit Facility bore interest at comparable rates to those incurred under the 2018 facility. The New Term Credit Facility was prepayable at any time by the Company and had to be repaid no later than 30 days after closing of the Company’s previously announced Malaysia divestiture. In July 2019, the Company closed the previously announced Malaysia divestiture, repaid and terminated the New Term Credit Facility.

As of September 30, 2019, the Company has a $1.6 billion revolving credit facility (2018 facility). The 2018 facility is a senior unsecured guaranteed facility which expires in November 2023. At September 30, 2019, the Company had no outstanding borrowings under the 2018 facility and $4.6 million of outstanding letters of credit, which reduce the borrowing capacity of the 2018 facility. At September 30, 2019, the interest rate in effect on borrowings under the facility would have been 3.51%. At September 30, 2019, the Company was in compliance with all covenants related to the 2018 facility.