Debt

3 Months Ended

Mar. 31, 2020

2016 Credit Agreement

The Company has a credit facility that currently provides for a $1.5 billion Term loan A facility and a $1.2 billion revolving credit facility (the "2016 Credit Agreement"). The 2016 Credit Agreement contains certain customary restrictive loan covenants, including, among others, financial covenants that apply a maximum consolidated leverage ratio and a minimum consolidated interest expense coverage ratio. The Company was in full compliance with all covenants as of March 31, 2020.

The Term loan A facility is being repaid in 16 consecutive quarterly installments that commenced on June 30, 2017, plus a final payment to be made on March 20, 2022. The revolving credit facility may be borrowed, repaid and re-borrowed through March 20, 2022, at which time all then-outstanding amounts must be repaid.

Refer to Note 15 for additional information regarding the Company’s 2016 Credit Agreement.

Senior Notes

The Company has $800.0 million aggregate principal amount of 5.125% Senior Notes due 2025 (the “Senior Notes”). The Senior Notes were issued at an issue price of 100.0% and bear interest at a fixed rate of 5.125% per annum. Interest on the Senior Notes is payable on April 1 and October 1 of each year. The Senior Notes mature on April 1, 2025.

The Company may redeem some or all of the Senior Notes at any time on or after April 1, 2020 for cash at the redemption prices set forth in the Note Indenture, plus accrued and unpaid interest to, but not including, the redemption date.

Outstanding Borrowings

The table below summarizes the Company’s total outstanding borrowings as of the dates indicated (in thousands).


	March 31,		December 31,
Description:	2020		2019
2016 Credit Agreement - Term loan A facility (1)	$	1,225,125	$	1,252,969
2016 Credit Agreement - Revolving credit facility (1), (2)	175,000		148,000
Senior Notes (3)	800,000		800,000
Other (4)	6,422		6,545
Principal amount outstanding (5)	2,206,547		2,207,514
Less: deferred financing fees (6)	(22,271)		(23,908)
Net balance sheet carrying amount	$	2,184,276	$	2,183,606

(1)The contractual annualized interest rate as of March 31, 2020 on the Term loan A facility and the revolving credit facility was 2.49%, which consisted of a floating Eurodollar base rate of 0.99% plus a margin of 1.50%. However, the Company has interest rate swap contracts that effectively convert the floating Eurodollar base rates on outstanding amounts to a fixed base rate.

(2)The Company had approximately $1.0 billion of available borrowing capacity on the revolver (not including the expansion feature) as of March 31, 2020.

(3)Consists of $800.0 million principal amount of Senior Notes outstanding. The Senior Notes bear interest at a fixed rate of 5.125% and mature on April 1, 2025.

(4)Consists of two State of Connecticut economic development loans. One of the loans originated in 2012, has a 10-year maturity and the outstanding balance of $1.4 million as of March 31, 2020 bears interest at a fixed rate of 3.00%. The second loan has a 10-year maturity and bears interest at a fixed rate of 1.75%. Both of these loans may be repaid at any time by the Company without penalty.

(5)The weighted average annual effective rate on the Company's outstanding debt for the three months ended March 31, 2020, including the effects of its interest rate swaps discussed below, was 4.43%.

(6)Deferred financing fees are being amortized to Interest expense, net over the term of the related debt obligation.

Interest Rate Swaps

As of March 31, 2020, the Company had four fixed-for-floating interest rate swap contracts with a total notional value of $1.4 billion that mature through 2025. The Company designates the swaps as accounting hedges of the forecasted interest payments on $1.4 billion of its variable-rate borrowings. The Company pays base fixed rates on these swaps ranging from 2.13% to 3.04% and in return receives a floating Eurodollar base rate on 30-day notional borrowings.

The Company accounts for its interest rate swap contracts as cash flow hedges in accordance with FASB ASC Topic 815. Because the swaps hedge forecasted interest payments, changes in the fair values of the swaps are recorded in accumulated other comprehensive income (loss), a component of stockholders' equity, as long as the swaps continue to be highly effective hedges of the designated interest rate risk. Any ineffective portion of a change in the fair value of a hedge is recorded in earnings. All of the Company's interest rate swaps were considered highly effective hedges of the forecasted interest payments as of both March 31, 2020 and December 31, 2019. The interest rate swaps had negative unrealized fair values (liabilities) of $126.3 million and $64.8 million as of March 31, 2020 and December 31, 2019, respectively. Such amounts were deferred and recorded in Accumulated other comprehensive loss, net of tax effect. See Note 11 — Fair Value Disclosures for the determination of the fair values of Company's interest rate swaps.