v3.24.3
Note 10 - Debt
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

10. Debt:

 

The following table presents short-term and long-term debt by issuance as of September 30, 2024 and December 31, 2023:

 

 

Issuance Date

Maturity Date

 

2024

  

2023

 

Short-term debt and current portion of long-term debt:

          

Credit Facilities:

          

Syndicated revolving credit facility

Various

Various

 $—  $— 

Senior notes:

          

4.000% senior notes, less unamortized discount and debt issuance costs of $(0.5)

5/15/2015

6/15/2025

  499.5   — 

Finance lease liabilities (1)

Various

Various

  16.6   14.5 

Short-term debt and current portion of long-term debt

  516.1   14.5 

Long-term debt:

          

Senior notes:

          

4.000% senior notes, less unamortized discount and debt issuance costs of $(1.8)

5/15/2015

6/15/2025

  —   898.2 

4.125% senior notes, inclusive of unamortized premium, net of unamortized discount and debt issuance costs, of $6.6 and $7.8, respectively

3/6/2019

3/15/2029

  606.6   607.8 

5.500% senior notes, less unamortized discount and debt issuance costs of $(3.7) and $(3.8), respectively

5/15/2015

6/15/2045

  346.3   346.2 

3.625% senior notes, less unamortized discount and debt issuance costs of $(9.3) and $(9.6), respectively

5/13/2020

5/15/2050

  490.7   490.4 

5.750% senior notes, less unamortized discount and debt issuance costs of $(8.1) and $(8.9), respectively

3/3/2023

4/1/2033

  491.9   491.1 

5.250% senior notes, less unamortized discount and debt issuance costs of $(14.6)

6/5/2024

6/5/2034

  585.4   — 

Finance lease liabilities (1)

Various

Various

  27.4   20.0 

Syndicated revolving credit facility debt issuance costs

Various

Various

  (1.4)  (1.5)

Long-term debt

  2,546.9   2,852.2 

Total debt

 $3,063.0  $2,866.7 

_______________

(1) Refer to Note 5. Leases

 

Senior Notes

 

As of September 30, 2024 and December 31, 2023, we had senior notes with an aggregate principal amount of $3,050.0 million and $2,850.0 million outstanding, respectively, and were in compliance with our financial and other covenants.

 

On  June 5, 2024, we completed an issuance of $600.0 million aggregate principal amount of 5.25% senior notes due 2034 (the "2034 Senior Notes"). The 2034 Senior Notes will mature on June 5, 2034 and accrue interest at a fixed rate of 5.25% per annum. Interest is payable semiannually on June 5th and  December 5th of each year, beginning  December 5th, 2024. The 2034 Senior Notes were issued at a discount of $9.8 million and we incurred debt issuance costs of $5.6 million. The original issuance discount and debt issuance costs were recorded in "Long-term debt" in the accompanying condensed consolidated balance sheets and these costs will be amortized to "Interest expense" in the accompanying consolidated statements of operations over the life of the 2034 Senior Notes. The net proceeds from the issuance of the 2034 Senior Notes were utilized partially for the tender offer of 4.00% senior notes due in 2025 ("2025 Senior Notes") and general corporate purposes. The indenture governing the 2034 Senior Notes restricts our ability to, among other things, create certain liens, enter into sale/leaseback transactions and consolidate with, sell, lease, convey or otherwise transfer all or substantially all of our assets, or merge with or into, any other person or entity.

 

On June 7, 2024, we completed a cash tender offer for $400.0 million, or 44.4%, of the aggregate principal amount of the 2025 Senior Notes. The consideration offered for each $1,000.0 principal amount of the 2025 Senior Notes was $987.09 (the "Purchase Price"). Net cash proceeds of the 2034 Senior Notes were used to pay the Purchase Price, plus accrued and unpaid interest. This reduced the outstanding balance to $500.0 million. We recognized a $3.6 million net gain on debt extinguishment comprised of $5.2 million for the discount paid below par, partially offset by $1.6 million of costs charged to expense on early debt modification, which were recognized during the three months ended June 30, 2024.

 

Credit Facilities

 

We have a syndicated revolving credit facility ("Syndicated Revolving Credit Facility") with a borrowing capacity of $1,000.0 million with Bank of America N.A., HSBC Bank USA, N.A., JP Morgan Chase Bank, N.A., Wells Fargo Bank, National Association, Citibank, N.A., Morgan Stanley Bank, N.A., TD Bank, N.A., Goldman Sachs Bank USA, and the Northern Trust Company. The Syndicated Revolving Credit Facility  may be used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the share repurchase program (the "Repurchase Program"). As of September 30, 2024, we were in compliance with all financial and other debt covenants under our Syndicated Revolving Credit Facility. As of September 30, 2024 and December 31, 2023, the available capacity under the Syndicated Revolving Credit Facility was $995.5 million and $995.4 million, which takes into account outstanding letters of credit of $4.5 million and $4.6 million, respectively.