DEBT

9 Months Ended

Sep. 30, 2019

DEBT

Short-term borrowings and the current portion of long-term debt at September 30, 2019, and December 31, 2018, consisted of the following:



	September 30, 2019			December 31, 2018
Zero-coupon convertible subordinated notes	$	1.4		$	8.7
2.625% senior notes due 2020	500.0			—
Debt issuance costs	(0.2		)	(0.5		)
Current portion of note payable	1.4			1.8
Total short-term borrowings and current portion of long-term debt	$	502.6		$	10.0

Long-term debt at September 30, 2019, and December 31, 2018, consisted of the following:



	September 30, 2019			December 31, 2018
2.625% senior notes due 2020	$	—		$	500.0
4.625% senior notes due 2020	604.1			596.9
3.20% senior notes due 2022	500.0			500.0
3.75% senior notes due 2022	500.0			500.0
4.00% senior notes due 2023	300.0			300.0
3.25% senior notes due 2024	600.0			600.0
3.60% senior notes due 2025	1,000.0			1,000.0
3.60% senior notes due 2027	600.0			600.0
4.70% senior notes due 2045	900.0			900.0
Revolving credit facility	—			—
2019 Term Loan	850.0			—
2017 Term Loan	277.0			527.0
Debt issuance costs	(35.5		)	(40.2		)
Note payable	5.7			7.2
Total long-term debt	$	6,101.3		$	5,990.9

Senior Notes

During the third quarter of 2013, the Company entered into two fixed-to-variable interest rate swap agreements for its 4.625% senior notes due 2020 with an aggregate notional amount of $600.0 and variable interest rates based on one-month LIBOR plus 2.298% to hedge against changes in the fair value of a portion of the Company's long-term debt. These derivative financial instruments are accounted for as fair value hedges of the senior notes due 2020. These interest rate swaps are included in other long-term assets or other long-term liabilities, as applicable, and added to or subtracted from the value of the senior notes, with an aggregate fair value asset of $4.1 at September 30, 2019, and an aggregate fair value liability of $3.1 at December 31, 2018.

Zero-Coupon Subordinated Notes

On September 11, 2019, the Company announced that for the period from September 11, 2019, to March 10, 2020, the zero-coupon subordinated notes will accrue contingent cash interest at a rate of no less than 0.125% of the average market price of a zero-coupon subordinated note for the five trading days ended September 6, 2019, in addition to the continued accrual of the original issue discount.

During the nine months ended September 30, 2019, the Company settled notices to convert $7.7 aggregate principal amount of its zero-coupon subordinated notes with a conversion value of $14.5. The total cash used for these settlements was $7.3. As a result of these conversions, the Company also reversed deferred tax liabilities of $1.7.

On October 15, 2019, the Company announced that its zero-coupon subordinated notes may be converted into cash and common stock at the conversion rate of 13.4108 per $1,000.0 principal amount at maturity of the notes, subject to the terms of the zero-coupon subordinated notes and the Indenture, dated as of October 24, 2006, between the Company and The Bank of New York Mellon, as trustee and the conversion agent. In order to exercise the option to convert all or a portion of the zero-coupon subordinated notes, holders are required to validly surrender their zero-coupon subordinated notes at any time during the calendar quarter beginning October 1, 2019, through the close of business on the last business day of the calendar quarter, which is 5:00 p.m., New York City time, on Tuesday, December 31, 2019. If notices of conversion are received, the Company plans to settle the cash portion of the conversion obligation with cash on hand and/or borrowings under its revolving credit facility.

Credit Facilities

On June 3, 2019, the Company entered into a new $850.0 2019 term loan facility in addition to its $750.0 2017 term loan facility. The 2019 term loan facility will mature on June 3, 2021. Proceeds of the 2019 term loan facility were used for general corporate purposes, including to repay approximately $250.0 of the 2017 term loan facility and in connection with the acquisition of Envigo's nonclinical research services business.

The 2019 term loan facility accrues interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin ranging from 0.55% to 1.175%, or a base rate determined according to a prime rate or federal funds rate plus a margin ranging from 0.0% to 0.175%. The 2019 term loan balance at September 30, 2019, was $850.0. As of September 30, 2019, the effective interest rate on the 2019 term loan was 2.84%.

The 2017 term loan facility accrues interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin ranging from 0.875% to 1.50%, or a base rate determined according to a prime rate or federal funds rate plus a margin ranging from 0.0% to 0.50%. The 2017 term loan balance at September 30, 2019, was $277.0 and at December 31, 2018, was $527.0. As of September 30, 2019, the effective interest rate on the 2017 term loan was 3.17%.

The Company maintains a revolving credit facility consisting of a five-year revolving facility in the principal amount of up to $1,000.0, with the option of increasing the facility by up to an additional $350.0, subject to the agreement of one or more new or existing lenders to provide such additional amounts and certain other customary conditions. The revolving credit facility also provides for a subfacility of up to $100.0 for swing line borrowings and a subfacility of up to $150.0 for issuances of letters of credit. The revolving credit facility is permitted to be used for general corporate purposes, including working capital, capital expenditures, funding of share repurchases and certain other payments, and acquisitions and other investments. The Company had no outstanding balance on its revolving credit facility at September 30, 2019, and December 31, 2018.

Advances under the revolving credit facility accrue interest at a per annum rate equal to, at the Company’s election, either a LIBOR rate plus a margin ranging from 0.775% to 1.25%, or a base rate determined according to a prime rate or federal funds rate plus a margin ranging from 0.00% to 0.25%. Fees are payable on outstanding letters of credit under the revolving credit facility at a per annum rate equal to the applicable margin for LIBOR loans, and the Company is required to pay a facility fee on the aggregate commitments under the revolving credit facility, at a per annum rate ranging from 0.10% to 0.25%.

The interest margin applicable to the term loan and credit facilities, and the facility fee and letter of credit fees payable under the revolving credit facility, are based on the Company’s senior credit ratings as determined by Standard & Poor’s and Moody’s.

Under the term loan facilities and the revolving credit facility, the Company is subject to negative covenants limiting subsidiary indebtedness and certain other covenants typical for investment grade-rated borrowers, and the Company is required to maintain certain leverage ratios. The Company was in compliance with all covenants in the term loan facilities and the revolving credit facility at September 30, 2019. As of September 30, 2019, the ratio of total debt to consolidated proforma trailing 12 month EBITDA was 3.3 to 1.0.

As of September 30, 2019, the Company had provided letters of credit aggregating approximately $72.4, primarily in connection with certain insurance programs. The Company's availability of $927.6 at September 30, 2019, under its revolving credit facility is reduced by the amount of these letters of credit.