Debt

6 Months Ended

Jun. 30, 2011


11.	Debt

The Corporation’s long-term debt at June 30, 2011 and December 31, 2010 was:


	June 30,		December 31,
	2011		2010

(In thousands)
Senior credit facility^(a)	$	325,000	$	325,000
Unsecured notes:
5.625% Senior Notes due 2021^(b)		248,438		248,301
Other, including capital leases		953		1,111

Long-term debt (including current maturities)		574,391		574,412
Less current maturities		331		322

Long-term debt, net of current maturities	$	574,060	$	574,090


^(a)		Interest is paid monthly.

^(b)		Interest is paid semi-annually.

As of June 30, 2011 and December 31, 2010, the Corporation had outstanding $250 million of 5.625% Senior Notes due 2021. The indentures underlying the unsecured notes contain standard covenants such as restrictions on mergers, liens on certain property, sale-leaseback of certain property and funded debt for certain subsidiaries. The indentures also include standard events of default such as covenant default and cross-acceleration.

The Corporation has a revolving credit facility with total availability of $750 million and a five-year term expiring in October 2012. All borrowings and other extensions of credit under the Corporation’s revolving credit facility are subject to the satisfaction of customary conditions, including absence of defaults and accuracy in material respects of representations and warranties. The proceeds of any loans under the revolving credit facility may be used for general operating needs and for other general corporate purposes in compliance with the terms of the facility. The Corporation pays an annual commitment fee to maintain this facility of 10 basis points. At June 30, 2011 and December 31, 2010, $325 million was outstanding under this facility.

Fees to access the facility and letters of credit under the facility are based on a pricing grid related to the Corporation’s debt ratings with Moody’s, S&P, and Fitch during the term of the facility.

The Corporation’s revolving credit facility requires that it maintain:


	•	a maximum leverage ratio of 3.75 to 1.00; and

	•	a minimum interest coverage ratio of 3.00 to 1.00.

It also contains customary covenants that could restrict the Corporation’s ability to: incur additional indebtedness; grant liens; make investments, loans, or guarantees; declare dividends; or repurchase company stock.

Outstanding letters of credit, which reduced availability under the credit facility, amounted to $22.3 million at June 30, 2011. The letters of credit relate primarily to third-party insurance claims processing.

The Corporation has a EUR 10 million (approximately US$14.2 million) committed revolving credit facility with a European bank. The Corporation pays an annual commitment fee of 20 basis points on the undrawn balance to maintain this facility. This credit facility contains standard covenants similar to those contained in the $750 million credit agreement and standard events of default such as covenant default and cross-default. This facility has an indefinite maturity, and no borrowings were outstanding as of June 30, 2011 and December 31, 2010. Outstanding letters of credit which reduced availability under the European facility amounted to EUR 0.9 million (approximately US$1.2 million) at June 30, 2011.

The Corporation has a CAN 30 million (approximately US$30.3 million) committed revolving credit facility with a Canadian bank. The Corporation pays an annual commitment fee of 12.5 basis points on the undrawn balance to maintain this facility. This credit facility contains standard covenants similar to those contained in the $750 million credit agreement and standard events of default such as covenant default and cross-default. This facility matures in December 2011, and no borrowings were outstanding as of June 30, 2011 and December 31, 2010.

As of June 30, 2011, the Corporation’s aggregate availability of funds under its credit facilities is approximately $446 million, after deducting outstanding letters of credit. The Corporation has the option, at the time of drawing funds under any of the credit facilities, of selecting an interest rate based on a number of benchmarks including LIBOR, the federal funds rate, or the prime rate of the agent bank.

As of June 30, 2011, the Corporation also had letters of credit in addition to those discussed above that do not reduce availability under the Corporation’s credit facilities. The Corporation had $19.2 million of such additional letters of credit that relate primarily to environmental assurances, third-party insurance claims processing, performance bonds, performance guarantees and acquisition obligations.