Debt

9 Months Ended

Oct. 02, 2011

Debt

Debt

12.Debt

Long-term debt consisted of the following:

	October 2, 2011					December 31, 2010
	In Local					In Local
($ in millions)	Currency		In U.S. $			Currency		In U.S. $
Notes Payable
7.125% Senior Notes, due September 2016	$	375.0	$	375.0		$	375.0	$	375.0
6.625% Senior Notes, due March 2018	$	450.0	450.0			$	450.0	450.0
7.375% Senior Notes, due September 2019	$	325.0	325.0			$	325.0	325.0
6.75% Senior Notes, due September 2020	$	500.0	500.0			$	500.0	500.0
5.75% Senior Notes, due May 2021	$	500.0	500.0			$	500.0	500.0
Senior Credit Facilities, due December 2015 (at variable rates)
Term A Loan, U.S. dollar denominated	$	200.0	200.0			$	200.0	200.0
Term B Loan, British sterling denominated	£	51.0	79.5			£	51.0	78.9
Term C Loan, euro denominated	€	100.0	133.9			€	100.0	132.5
U.S. dollar multi-currency revolver borrowings	$	100.0	100.0			$	—	—
Euro multi-currency revolver borrowings	€	110.0	147.2			€	—	—
Latapack-Ball Notes Payable (at variable rates, due in October 2017)	$	182.8	182.8			$	135.0	135.0
Industrial Development Revenue Bonds
Floating rates due through 2011	$	5.4	5.4			$	5.4	5.4
Other (including discounts and premiums)	Various		42.3			Various		34.3
			3,041.1					2,736.1
Less: Current portion of long-term debt			(63.6		)			(34.5		)
			$	2,977.5				$	2,701.6

The senior credit facilities bear interest at variable rates and include the term loans described in the table above, as well as a long-term, multi-currency committed revolving credit facility that provides the company with up to the U.S. dollar equivalent of $1 billion. The revolving credit facilities expire in December 2015. The Latapack-Ball debt facilities contain various covenants and restrictions but are non-recourse to Ball Corporation and its wholly owned subsidiaries.

At October 2, 2011, taking into account outstanding letters of credit, approximately $730 million was available under the company’s long-term, multi-currency committed revolving credit facilities, which are available until December 2015. In addition to the long-term, multi-currency committed credit facilities, the company had approximately $526 million of short-term uncommitted credit facilities available at the end of the quarter, of which $149.4 million was outstanding and due on demand.

On August 1, 2011, the company entered into an accounts receivable securitization agreement for a term of three years. The maximum the company can borrow under this agreement can vary between $150 million and $275 million depending on the seasonality of the company’s business. At October 2, 2011, $265.8 million of accounts receivable were sold under this agreement. Borrowings under the securitization agreement are included within the short-term debt and current portion of long-term debt line on the balance sheet. There were no accounts receivable sold at December 31, 2010, under the company’s previous securitization program that allowed for borrowings of between $125 million and $175 million.

The fair value of the long-term debt at October 2, 2011, and at December 31, 2010, approximated its carrying value. The fair value reflects the market rates at each period end for debt with credit ratings similar to the company’s ratings. Rates currently available to the company for loans with similar terms and maturities are used to estimate the fair value of long-term debt based on discounted cash flows.

On March 22, 2010, Ball issued $500 million of new 6.75 percent senior notes due in September 2020. On April 21, 2010, the company redeemed $509 million of its 6.875 percent senior notes due December 2012 at a redemption price of 101.146 percent of the outstanding principal amount plus accrued interest. The redemption resulted in a charge of $8.1 million for the call premium and the write off of unamortized financing costs and unamortized premiums. The charge is included as a component of interest expense in the consolidated financial statements.

The senior notes and senior credit facilities are guaranteed on a full, unconditional and joint and several basis by certain of the company’s wholly owned domestic subsidiaries. Certain foreign denominated tranches of the senior credit facilities are similarly guaranteed by certain of the company’s wholly owned foreign subsidiaries. The unaudited condensed consolidating financial information for the guarantor and non-guarantor subsidiaries is presented in Exhibit 20 to this Form 10-Q. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements are not required by the current regulations.

The U.S. note agreements, bank credit agreement, industrial development revenue bond agreements and the new accounts receivable securitization agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of the company’s debt covenants require the company to maintain an interest coverage ratio (as defined in the agreements) of no less than 3.50 and a leverage ratio (as defined) of no greater than 4.00.  The company was in compliance with all loan agreements and debt covenants at October 2, 2011, and December 31, 2010, and has met all debt payment obligations.