Notes Payable and Long-Term Debt

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Notes Payable and Long-Term Debt

Notes Payable and Long-Term Debt

As of March 31, 2014 and December 31, 2013, the Company had short-term and long-term debt outstanding as follows:

	March 31,		December 31,
(millions of dollars)	2014		2013
Short-term debt
Short-term borrowings	$	221.6	$	84.8
Receivables securitization	110.0		110.0
Total short-term debt	$	331.6	$	194.8
Long-term debt
5.75% Senior notes due 11/01/16 ($150 million par value)	$	149.7	$	149.7
8.00% Senior notes due 10/01/19 ($134 million par value)	134.0		133.9
4.625% Senior notes due 09/15/20 ($250 million par value)	248.2		248.2
7.125% Senior notes due 02/15/29 ($121 million par value)	119.4		119.4
Multi-currency revolving credit facility	320.0		320.0
Term loan facilities and other	48.0		40.4
Unamortized portion of debt derivatives	15.2		16.2
Total long-term debt	1,034.5		1,027.8
Less: current portion	6.9		6.8
Long-term debt, net of current portion	$	1,027.6	$	1,021.0

The weighted average interest rate on all borrowings outstanding as of March 31, 2014 and December 31, 2013 was 3.4% and 3.7%, respectively.

On February 11, 2014, the Company's universal shelf registration expired. The Company filed a new universal shelf registration with the Securities and Exchange Commission on February 28, 2014.

The Company's $750 million multi-currency revolving credit facility includes a feature that allows the Company's borrowings to be increased to $1 billion. 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 March 31, 2014 and expects to remain compliant in future periods. At March 31, 2014 and December 31, 2013, the Company had outstanding borrowings of $320.0 million under this facility.

On March 12, 2014, the Company entered into a new commercial paper program pursuant to which the Company may issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding of $1.0 billion. Under this program, the Company may issue notes from time to time and will use the proceeds for general corporate purposes. At March 31, 2014, the Company had outstanding borrowings of $100.0 million under this program, which is classified in the Condensed Consolidated Balance Sheet in Notes Payable and Other Short-Term Debt.

As of March 31, 2014 and December 31, 2013, the estimated fair values of the Company’s senior unsecured notes totaled $739.7 million and $729.7 million, respectively. The estimated fair values were $88.4 million and $78.5 million higher than their carrying value at March 31, 2014 and December 31, 2013, 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 values of the Company's multi-currency revolving credit facility and commercial paper program are equal to their fair values. 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 $27.6 million and $27.8 million at March 31, 2014 and December 31, 2013, respectively. The letters of credit typically act as guarantees of payment to certain third parties in accordance with specified terms and conditions.