Short-term and Long-term Debt

3 Months Ended

Mar. 28, 2020

Short-term and long-term debt as of March 28, 2020, and December 28, 2019, consisted of the following:


(Amounts in millions)	March 28, 2020		December 28, 2019
6.125% unsecured notes due 2021	$	250.0	$	250.0
3.25% unsecured notes due 2027	300.0		300.0
4.10% unsecured notes due 2048	400.0		400.0
Other debt*	158.3		199.8
	1,108.3		1,149.8
Less: notes payable

Commercial paper borrowings	—		(193.6)
Credit Facility borrowings	(150.0)		—
Other notes	(10.1)		(9.3)
	(160.1)		(202.9)
Total long-term debt	$	948.2	$	946.9

Includes the net effects of debt amortization costs and fair value adjustments of interest rate swaps.

Notes payable of $160.1 million as of March 28, 2020, included $150.0 million of short-term credit facility borrowings, which bear a maturity date within three months from the borrowing date, and $10.1 million of other notes. There were no commercial paper borrowings outstanding as of March 28, 2020, due to the volatility of the commercial paper market as a result of the economic uncertainty related to the COVID-19 pandemic. As of 2019 year end, notes payable of $202.9 million included $193.6 million of commercial paper borrowings and $9.3 million of other notes.

Snap-on has an $800 million multi-currency revolving credit facility that terminates on September 16, 2024 (the “Credit Facility”); $150 million was outstanding under the Credit Facility as of March 28, 2020. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-on’s then-current, long-term debt ratings; or (ii) Snap-on’s then-current ratio of consolidated debt net of certain cash adjustments (“Consolidated Net Debt”) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Consolidated Net Debt to EBITDA Ratio”). The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of Consolidated Net Debt to the sum of Consolidated Net Debt plus total equity and less accumulated other comprehensive income or loss (the “Leverage Ratio”); or (ii) a Consolidated Net Debt to EBITDA Ratio not greater than 3.50 to 1.00. Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of March 28, 2020, the company’s actual ratios of 0.20 and 0.93 respectively, were both within the permitted ranges set forth in this financial covenant. Snap-on generally issues commercial paper to fund its financing needs on a short-term basis and uses the Credit Facility as back-up liquidity to support such commercial paper issuances.