v3.19.3.a.u2
Borrowings
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6 Months Ended |
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| Debt Disclosure [Abstract] |
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| Borrowings |
BORROWINGSOutstanding borrowings and available capacity under the Company’s borrowing arrangements were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Expiration
Date | | Principal amount outstanding at December 31, 2019 | | Carrying value at December 31, 2019 | | Carrying value at June 30, 2019 | | Unused
Available
Capacity | | Fair Value at December 31, 2019 | | | | | | (In millions) | | | | | | | | Current portion of long-term debt | | | | | | | | | | | | | Fiscal 2014 Senior Notes (a) | September 2020 | | $ | 400.0 | | | $ | 399.5 | | | $ | — | | | $ | — | | | $ | 405.0 | | | Total | | | $ | 400.0 | | | $ | 399.5 | | | $ | — | | | $ | — | | | $ | 405.0 | | | | | | | | | | | | | | | Long-term debt, excluding current portion | | | | | | | | | | | | | Fiscal 2019 Revolving Credit Facility: | | | | | | | | | | | | | U.S. dollar tranche | March 2024 | | $ | — | | | $ | — | | | $ | 360.0 | | | $ | 1,100.0 | | | $ | — | | | Multicurrency tranche | March 2024 | | 212.2 | | | 212.2 | | | 215.7 | | | 187.8 | | | 212.2 | | | Total Revolving Credit Facility | | | 212.2 | | | 212.2 | | | 575.7 | | | 1,287.8 | | | 212.2 | | | | | | | | | | | | | | | Fiscal 2014 Senior Notes (a) | September 2020 | | — | | | — | | | 399.2 | | | — | | | — | | | Fiscal 2016 Senior Notes | June 2026 | | 500.0 | | | 495.8 | | | 495.5 | | | — | | | 522.0 | | | Fiscal 2020 Senior Notes | December 2029 | | 750.0 | | | 741.3 | | | — | | | — | | | 749.9 | | | Total Senior Notes | | | 1,250.0 | | | 1,237.1 | | | 894.7 | | | — | | | 1,271.9 | | | | | | | | | | | | | | | Total long-term debt | | | $ | 1,462.2 | | | $ | 1,449.3 | | | $ | 1,470.4 | | | $ | 1,287.8 | | | $ | 1,484.1 | | | | | | | | | | | | | | | Total debt | | | $ | 1,862.2 | | | $ | 1,848.8 | | | $ | 1,470.4 | | | $ | 1,287.8 | | | $ | 1,889.1 | |
_________ (a) The Fiscal 2014 Senior Notes were reclassified from Long-term debt to Current portion of long-term debt in September 2019 to reflect the remaining maturity of less than a year.
Future principal payments on the Company’s outstanding debt are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Years ending June 30, | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 | | Thereafter | | Total | | (in millions) | | $ | — | | | $ | 400.0 | | | $ | — | | | $ | — | | | $ | 212.2 | | | $ | 1,250.0 | | | $ | 1,862.2 | |
Fiscal 2019 Revolving Credit Facility: On March 18, 2019, the Company entered into an amended and restated $1.5 billion five-year revolving credit facility (the “Fiscal 2019 Revolving Credit Facility”), which replaced the $1.0 billion five-year revolving credit facility entered into during February 2017 (the “Fiscal 2017 Revolving Credit Facility”) (together the “Revolving Credit Facilities”). The Fiscal 2019 Revolving Credit Facility is comprised of a $1.1 billion U.S. dollar tranche and a $400.0 million multicurrency tranche. The weighted-average interest rate on the Revolving Credit Facilities was 2.80% and 2.95% for the three and six months ended December 31, 2019 and 3.24% and 3.13% for the three and six months ended December 31, 2018. The fair value of the variable-rate Fiscal 2019 Revolving Credit Facility borrowings at December 31, 2019 approximates carrying value and has been classified as a Level 2 financial liability (as defined in Note 7, “Fair Value of Financial Instruments”). Borrowings under the Fiscal 2019 Revolving Credit Facility can be made in tranches up to 360 days and bear interest at LIBOR plus 101.5 basis points. In addition, the Fiscal 2019 Revolving Credit Facility has an annual facility fee equal to 11.0 basis points on the entire facility. The Company may voluntarily prepay, in whole or in part and without premium or penalty, borrowings under the Fiscal 2019 Revolving Credit Facility in accordance with individual drawn loan maturities. The Fiscal 2019 Revolving Credit Facility is subject to certain covenants, including a leverage ratio. At December 31, 2019, the Company is in compliance with all covenants of the Fiscal 2019 Revolving Credit Facility. Fiscal 2014 Senior Notes: In August 2013, the Company completed an offering of $400.0 million in aggregate principal amount of senior notes (the “Fiscal 2014 Senior Notes”). The Fiscal 2014 Senior Notes will mature on September 1, 2020 and bear interest at a rate of 3.95% per annum. Interest on the Fiscal 2014 Senior Notes is payable semi-annually in arrears on March 1st and September 1st each year. The Fiscal 2014 Senior Notes were issued at a price of 99.871% (effective yield to maturity of 3.971%). The indenture governing the Fiscal 2014 Senior Notes contains certain covenants including covenants restricting the Company’s ability to create or incur liens securing indebtedness for borrowed money and to enter into certain sale-leaseback transactions. At December 31, 2019, the Company is in compliance with the covenants of the indenture governing the Fiscal 2014 Senior Notes. The indenture also contains covenants regarding the purchase of the Fiscal 2014 Senior Notes upon a change of control triggering event. The Company may redeem the Fiscal 2014 Senior Notes in whole or in part at any time before their maturity. The fair value of the fixed-rate Fiscal 2014 Senior Notes at December 31, 2019 and June 30, 2019 was $405.0 million and $405.4 million, respectively, based on quoted market prices and has been classified as a Level 1 financial liability (as defined in Note 7, “Fair Value of Financial Instruments”). Fiscal 2016 Senior Notes: In June 2016, the Company completed an offering of $500.0 million in aggregate principal amount of senior notes (the “Fiscal 2016 Senior Notes”). The Fiscal 2016 Senior Notes will mature on June 27, 2026 and bear interest at a rate of 3.40% per annum. Interest on the Fiscal 2016 Senior Notes is payable semi-annually in arrears on June 27 and December 27 of each year. The Fiscal 2016 Senior Notes were issued at a price of 99.589% (effective yield to maturity of 3.449%). The indenture governing the Fiscal 2016 Senior Notes contains certain covenants including covenants restricting the Company’s ability to create or incur liens securing indebtedness for borrowed money, to enter into certain sale-leaseback transactions, and to engage in mergers or consolidations and transfer or lease all or substantially all of our assets. At December 31, 2019, the Company is in compliance with the covenants of the indenture governing the Fiscal 2016 Senior Notes. The indenture also contains covenants regarding the purchase of the Fiscal 2016 Senior Notes upon a change of control triggering event. The Company may redeem the Fiscal 2016 Senior Notes in whole or in part at any time before their maturity. The fair value of the fixed-rate Fiscal 2016 Senior Notes at December 31, 2019 and June 30, 2019 was $522.0 million and $509.8 million, respectively, based on quoted market prices and has been classified as a Level 1 financial liability (as defined in Note 7, “Fair Value of Financial Instruments”). Fiscal 2020 Senior Notes: In December 2019, the Company completed an offering of $750.0 million in aggregate principal amount of senior notes (the “Fiscal 2020 Senior Notes”). The Fiscal 2020 Senior Notes will mature on December 1, 2029 and bear interest at a rate of 2.90% per annum. Interest on the Fiscal 2020 Senior Notes is payable semi-annually in arrears on June 1 and December 1 of each year. The Fiscal 2020 Senior Notes were issued at a price of 99.717% (effective yield to maturity of 2.933%). The indenture governing the Fiscal 2020 Senior Notes contains certain covenants including covenants restricting the Company’s ability to create or incur liens securing indebtedness for borrowed money, to enter into certain sale-leaseback transactions, and to engage in mergers or consolidations and transfer or lease all or substantially all of our assets. At December 31, 2019, the Company is in compliance with the covenants of the indenture governing the Fiscal 2020 Senior Notes. The indenture also contains covenants regarding the purchase of the Fiscal 2020 Senior Notes upon a change of control triggering event. The Company may redeem the Fiscal 2020 Senior Notes in whole or in part at any time before their maturity. The fair value of the fixed-rate Fiscal 2020 Senior Notes at December 31, 2019 was $749.9 million, based on quoted market prices and has been classified as a Level 1 financial liability (as defined in Note 7, “Fair Value of Financial Instruments”). The Fiscal 2019 Revolving Credit Facility, Fiscal 2014 Senior Notes, Fiscal 2016 Senior Notes and Fiscal 2020 Senior Notes are senior unsecured obligations of the Company and are ranked equally in right of payment.
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- DefinitionThe entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
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