Notes Payable and Long-Term Debt

6 Months Ended

Jun. 30, 2013

As of June 30, 2013 and December 31, 2012, the Company had short-term and long-term debt outstanding as follows:



	June 30,		December 31,
(millions of dollars)	2013		2012
Short-term debt
Short-term borrowings	$	206.7	$	129.1
Receivables securitization	110.0		110.0
Total short-term debt	$	316.7	$	239.1

Long-term debt
5.75% Senior notes due 11/01/16 ($150 million par value)	$	149.6	$	149.6
8.00% Senior notes due 10/01/19 ($134 million par value)	133.9		133.9
4.625% Senior notes due 09/15/20 ($250 million par value)	248.1		247.9
7.125% Senior notes due 02/15/29 ($121 million par value)	119.4		119.4
Multi-currency revolving credit facility	220.0		140.0
Term loan facilities and other	24.2		17.1
Unamortized portion of debt derivatives	18.2		20.2
Total long-term debt	913.4		828.1
Less: current portion	0.1		4.3
Long-term debt, net of current portion	$	913.3	$	823.8

The weighted average interest rate on all borrowings outstanding as of June 30, 2013 and December 31, 2012 was 3.6% and 4.0%, respectively.

The Company's multi-currency revolving credit facility includes a feature that allows the Company's borrowings to be increased to $1 billion. Utilizing this feature, on April 12, 2013, the Company increased its multi-currency revolving credit facility from $650 million to $750 million. The credit facility provides for borrowings through June 30, 2016 and is guaranteed by the Company's material domestic subsidiaries. The credit facility has two key financial covenants, a debt compared to EBITDA (“Earnings Before Interest, Taxes, Depreciation and Amortization”) test and an interest coverage test. The Company was in compliance with all covenants at June 30, 2013 and expects to remain compliant in future periods. At June 30, 2013 and December 31, 2012, the Company had outstanding borrowings of $220.0 million and $140.0 million, respectively, under this facility.

As of June 30, 2013 and December 31, 2012, the estimated fair values of the Company’s senior unsecured notes totaled $736.5 million and $770.3 million, respectively. The estimated fair values were $85.5 million and $119.5 million higher than their carrying value at June 30, 2013 and December 31, 2012, respectively. Fair market values of the senior unsecured notes are developed using observable values for similar debt instruments, which are considered Level 2 inputs as defined by ASC Topic 820. The carrying value of the Company's multi-currency revolving credit facility is equal to its fair value. The fair value estimates do not necessarily reflect the values the Company could realize in the current markets.

The Company had outstanding letters of credit of $23.9 million and $59.1 million at June 30, 2013 and December 31, 2012, respectively. The letters of credit typically act as guarantees of payment to certain third parties in accordance with specified terms and conditions.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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