Quarterly report pursuant to Section 13 or 15(d)

SHORT-TERM BORROWINGS AND LONG-TERM DEBT

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SHORT-TERM BORROWINGS AND LONG-TERM DEBT
 9 Months Ended
Oct. 01, 2022
Debt Disclosure [Abstract]  
SHORT-TERM BORROWINGS AND LONG-TERM DEBT SHORT-TERM BORROWINGS AND LONG-TERM DEBT
Short-term Borrowings
At September 2022, December 2021 and September 2021, the Company had $24.3 million, $10.1 million and $10.1 million, respectively, of borrowing availability under international lines of credit with various banks, which are uncommitted and may be terminated at any time by either the Company or the banks. There was $6.9 million of outstanding balances under these arrangements at September 2022, and no outstanding balances at December 2021 and September 2021. In addition, short-term borrowings at September 2022, December 2021 and September 2021 included other debt of $0.2 million, $0.2 million and $0.3 million, respectively.
Long-term Debt
The following table presents the components of long-term debt as recorded in the Company's balance sheets:
(In thousands) September 2022 December 2021 September 2021
Revolving Credit Facility $ 40,000  $ —  $ — 
Term Loan A 397,822  397,427  660,738 
Term Loan B —  —  130,800 
4.125% Notes, due 2029
 394,471  393,890  — 
Total long-term debt 832,293  791,317  791,538 
Less: current portion (7,500) —  (18,125)
Long-term debt, due beyond one year $ 824,793  $ 791,317  $ 773,413 
Credit Facilities
On November 18, 2021, the Company completed a refinancing pursuant to which it issued $400.0 million of Notes (as defined below) and amended and restated its Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for (i) a five-year $400.0 million term loan A facility (“Term Loan A”), with mandatory repayments beginning in March 2023 and (ii) a five-year $500.0 million revolving credit facility (the “Revolving Credit Facility”) (collectively, the “Credit Facilities”) with the lenders and agents party thereto. The net proceeds from the offering of the Notes, together with $7.6 million of cash on hand, were used to repay $265.0 million of the principal amount outstanding under the then existing term loan A, and all of the $133.0 million principal amount outstanding under the then existing term loan B.
Term Loan A had an outstanding principal amount of $400.0 million at both September 2022 and December 2021, and at September 2021, the then existing term loan A had an outstanding principal amount of $665.0 million. These balances are reported net of unamortized deferred financing costs. As of September 2022, interest expense on Term Loan A was being recorded at an effective annual interest rate of 3.7%, including the amortization of deferred financing costs and the impact of the Company’s interest rate swap.
The Revolving Credit Facility may be used to borrow funds in both U.S. dollar and certain non-U.S. dollar currencies, and has a $75.0 million letter of credit sublimit. As of September 2022, the Company had $40.0 million of outstanding borrowings under the Revolving Credit Facility and $12.1 million of outstanding standby letters of credit issued on behalf of the Company, leaving $447.9 million available for borrowing against this facility.
The interest rate per annum applicable to the Credit Agreement is an interest rate benchmark elected by the Company based on the currency and term of the borrowing plus an applicable margin, as defined therein.
The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type as well as customary events of default. In addition, the Credit Agreement contains financial covenants which require compliance with (i) a total leverage ratio not to exceed 4.50 to 1.00 as of the last day of any test period, with an allowance for up to two elections to increase the limit to 5.00 to 1.00 in connection with certain material acquisitions, and (ii) a consolidated interest coverage ratio as of the last day of any test period to be no less than 3.00 to 1.00. As of September 2022, the Company was in compliance with all financial covenants and expects to maintain compliance with the applicable financial covenants for at least one year from the issuance of these financial statements.
Senior Notes
On November 18, 2021, the Company entered into an indenture (the “Indenture”) by and among the Company and certain subsidiaries of the Company named as guarantors therein (the “Guarantors”), pursuant to which it issued $400.0 million of unsecured senior notes due November 2029 (the “Notes”) through a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The Notes bear interest at a fixed rate of 4.125% per annum, payable in cash in arrears on May 15 and November 15 of each year.
The Notes had an outstanding principal amount of $400.0 million at both September 2022 and December 2021. This balance is reported net of unamortized deferred financing costs. As of September 2022, interest expense on the Notes was being recorded at an effective annual interest rate of 4.3%, including the amortization of deferred financing costs.
The Notes are guaranteed on a senior unsecured basis by the Company’s existing and future domestic subsidiaries (other than certain excluded subsidiaries) that are borrowers under or guarantors of the Credit Facilities or certain other indebtedness. The Indenture governing the Notes contains customary negative covenants for financings of this type. The Indenture does not contain any financial covenants. As of September 2022, the Company was in compliance with the Indenture.
Refer to Note 10 in the Company's 2021 Annual Report on Form 10-K for additional information regarding the Company’s debt obligations.
Total cash paid for interest, net of amounts capitalized, was $18.7 million and $22.7 million during the nine months ended September 2022 and September 2021, respectively.