Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.10.0.1
Debt
9 Months Ended
Sep. 29, 2018
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
Debt

On June 28, 2018, the Company entered into an agreement with Morgan Stanley Senior Funding, Inc. to obtain a $1.1 billion, 364-Day Senior Unsecured Bridge Facility (Bridge Facility). This agreement was completed in connection with the acquisition of Power Products. Refer to Note 4 – Acquisitions for further details regarding the acquisition. On July 13, 2018, the Company executed the First Amendment to its Credit Facility to remove certain restrictions on the Company to incur unsecured debt with a maturity date before the Credit facility termination date. Simultaneously, $300 million of commitments related to the Bridge Facility were permanently terminated resulting in $800 million remaining under this facility. On August 7, 2018, the commitments with respect to the Bridge Facility were reduced to zero through a term loan credit agreement (Credit Agreement) to obtain term loans (Term Loans) in an aggregate principal amount of $800 million. The Term Loan debt issued on August 9, 2018 consisted of the following:
(in millions)
Principal Amount
 
Maturity Date
 
Interest Rate
 
Net Proceeds
364-day tranche loan, net of debt issuance costs of $1.1
$
300.0

 
August 2019
 
Floating
 
$
298.9

3-year tranche loan, net of debt issuance costs of $0.6
150.0

 
August 2021
 
Floating
 
149.4

5-year tranche loan, net of debt issuance costs of $1.7 (A)
350.0

 
August 2023
 
Floating
 
348.3

     Total
$
800.0

 
 
 
 
 
$
796.6

(A) Beginning in December 2018, scheduled repayment of the 5-year tranche loan occurs each March, June, September and December equal to 2.50 percent of the aggregate principal amount of $350 million. The remaining principal amount is due August 2023.

The Term Loans are unsecured and do not contain subsidiary guarantees. The Company is required to maintain compliance with two financial covenants: a minimum interest coverage ratio and a maximum leverage ratio. The minimum interest coverage, as defined in the Credit Agreement, is not permitted to be less than 3.00 to 1.00. The maximum leverage ratio, as defined in the Credit Agreement, is not permitted to be more than 3.50 to 1.00. As of September 29, 2018, the Company was in compliance with the financial covenants in the Credit Agreement.

Scheduled maturities, net:
(in millions)
 
Remainder of 2018
$
12.3

2019
340.7

2020
41.1

2021
335.7

2022
35.6

Thereafter
464.4

     Total debt
$
1,229.8



On September 26, 2018, the Company entered into an Amended and Restated Credit Agreement (Credit Facility). The Credit Facility amended and restated the Company's existing credit agreement, dated as of March 2011, as amended and restated as of June 2016 and as further amended as of July 2018. The Credit Facility provides for $400.0 million of borrowing capacity and is in effect through September 2023. The Credit Facility includes provisions to add up to $100.0 million of additional borrowing capacity and extend the facility for two additional one-year terms, subject to lender approval. No borrowings were outstanding as of or during the nine months ended September 29, 2018, and available borrowing capacity totaled $396.0 million, net of $4.0 million of letters of credit outstanding under the Credit Facility. As of September 29, 2018, the Company was in compliance with the financial covenants in the Credit Facility.