Financing Arrangements

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Financing Arrangements

Note 10 - Financing Arrangements

Short-term debt at March 31, 2022 and December 31, 2021 was as follows:

	March 31, 2022		December 31, 2021
Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.50% to 2.10% at March 31, 2022 and 0.50% to 2.00% at December 31, 2021	$	29.9	$	42.6
Short-term debt	$	29.9	$	42.6

The lines of credit for certain of the Company's foreign subsidiaries provide for short-term borrowings up to $268.4 million in the aggregate. Most of these lines of credit are uncommitted. At March 31, 2022, the Company’s foreign subsidiaries had borrowings outstanding of $29.9 million and bank guarantees of $0.3 million, which reduced the aggregate availability under these facilities to $238.2 million.

Long-term debt at March 31, 2022 and December 31, 2021 was as follows:

	March 31, 2022		December 31, 2021
Variable-rate Senior Credit Facility with an average interest rate on U.S. Dollar of 1.17% and Euro of 1.00% at March 31, 2022 and U.S. Dollar of 1.09% and Euro of 1.00% at December 31, 2021	$	8.8	$	9.0
Variable-rate Term Loan(1), maturing on September 11, 2023, with an interest rate of 1.58% at March 31, 2022 and 1.23% at December 31, 2021	319.0		321.1
Fixed-rate Senior Unsecured Notes(1), maturing on September 1, 2024, with an interest rate of 3.875%	349.6		349.5
Fixed-rate Euro Senior Unsecured Notes(1), maturing on September 7, 2027, with an interest rate of 2.02%	165.8		170.3
Fixed-rate Senior Unsecured Notes(1), maturing on December 15, 2028, with an interest rate of 4.50%	396.9		396.9
Fixed-rate Medium-Term Notes, Series A(1), maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76%	154.7		154.7
Fixed-rate Senior Unsecured Notes(1), maturing on April 1, 2032, with an interest rate of 4.125%	341.7		—
Fixed-rate Euro Bank Loan, maturing on June 30, 2033, with an interest rate of 2.15%	15.4		15.8
Other	6.4		5.0
Total debt	$	1,758.3	$	1,422.3
Less: Current maturities	11.1		11.2
Long-term debt	$	1,747.2	$	1,411.1

(1) Net of discounts and fees

The Company has a $100 million Amended and Restated Asset Securitization Agreement (the "Accounts Receivable Facility"), which matures on November 30, 2024. Under the terms of the Accounts Receivable Facility, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly-owned consolidated subsidiary that, in turn, uses the trade receivables to secure borrowings that are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the Accounts Receivable Facility may be limited to certain borrowing base limitations; however, availability under the Accounts Receivable Facility was not reduced by any such borrowing base limitations at March 31, 2022. As of March 31, 2022, there were no outstanding borrowings under the Accounts Receivable Facility. The cost of this facility, which is the prevailing commercial paper rate plus facility fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income.

Note 10 - Financing Arrangements (continued)

The Company entered into the Fourth Amended and Restated Credit Agreement ("Senior Credit Facility") on June 25, 2019. The Senior Credit Facility is a $650.0 million unsecured revolving credit facility, which matures on June 25, 2024. At March 31, 2022, the Company had $8.8 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $641.2 million. The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio.

On March 28, 2022, the Company issued fixed-rate unsecured senior notes ("2032 Notes") in the aggregate principal amount of $350 million with an interest rate of 4.125%, maturing on April 1, 2032. Proceeds from the notes were used to repay borrowings under the Senior Credit Facility and the Accounts Receivable Facility outstanding at the time of issuance, and for general corporate purposes.

On September 11, 2018, the Company entered into a $350 million variable-rate term loan that matures on September 11, 2023 (the "2023 Term Loan"). Proceeds from the 2023 Term Loan were used to fund the acquisitions of Apiary Investments Holding Limited and Rollon S.p.A., which closed on September 1, 2018 and September 18, 2018, respectively. On July 12, 2019, the Company amended the 2023 Term Loan agreement to, among other things, align covenants and other terms with the Senior Credit Facility.

At March 31, 2022, the Company was in full compliance with all applicable covenants on its outstanding debt.

In the ordinary course of business, the Company utilizes standby letters of credit issued by financial institutions to guarantee certain obligations, most of which relate to insurance contracts. At March 31, 2022, outstanding letters of credit totaled $42.8 million, most with expiration dates within 12 months.

The maturities of long-term debt (including $3.8 million of finance leases) subsequent to March 31, 2022 are as follows:

Year
2022	$	8.8
2023	317.6
2024	360.5
2025	1.7
2026	11.5
2027	192.2
Thereafter	866.0