DEBT AND BANK CREDIT FACILITIES |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT AND BANK CREDIT FACILITIES | DEBT AND BANK CREDIT FACILITIES The following table presents the Company’s indebtedness as of June 30, 2025 and December 31, 2024:
The below discussion of the Company’s indebtedness should be read in conjunction with the Note 6 – Debt and Bank Credit Facilities in the Company’s 2024 Annual Report on Form 10-K filed on February 21, 2025. Senior Notes On January 24, 2023, the Company issued $1,100.0 million aggregate principal amount of its 6.05% senior notes due 2026 (the “2026 Senior Notes”), $1,250.0 million aggregate principal amount of its 6.05% senior notes due 2028 (the “2028 Senior Notes”), $1,100.0 million aggregate principal amount of its 6.30% senior notes due 2030 (the “2030 Senior Notes”) and $1,250.0 million aggregate principal amount of its 6.40% senior notes due 2033 (the “2033 Senior Notes” and, together with the 2026 Senior Notes, 2028 Senior Notes and 2030 Senior Notes, collectively, the “Senior Notes”). The 2026 Senior Notes are scheduled to mature on February 15, 2026, the 2028 Senior Notes are scheduled to mature on April 15, 2028, the 2030 Senior Notes are scheduled to mature on February 15, 2030, and the 2033 Senior Notes are scheduled to mature on April 15, 2033. Interest on the 2026 Senior Notes and the 2030 Senior Notes is payable semi-annually on February 15 and August 15 of each year, beginning on August 15, 2023. Interest on the 2028 Senior Notes and the 2033 Senior Notes is payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2023. In May 2024 the Company exchanged the Senior Notes with registered notes with terms substantially identical to those of the Senior Notes of the corresponding series (the “New Notes”). The Company exchanged approximately $4,697.1 million in aggregate principal amount of Senior Notes for approximately $4,697.1 million in aggregate principal amount of New Notes of the corresponding series. The aggregate principal amount of Senior Notes not exchanged, approximately $2.9 million, remained outstanding across the four series of Senior Notes. The New Notes consist of approximately $1,099.0 million aggregate principal amount of 6.05% senior notes due 2026, $1,249.4 million aggregate principal amount of 6.05% senior notes due 2028, $1,099.4 million aggregate principal amount of 6.30% senior notes due 2030 and $1,249.3 million aggregate principal amount of 6.40% senior notes due 2033. Based on rates for instruments with comparable maturities and credit quality, which are classified as Level 2 inputs (see also Note 15 - Fair Value), the approximate fair value of the Senior Notes was $4,860.5 million and $4,795.2 million as of June 30, 2025 and December 31, 2024, respectively, compared to a carrying value of $4,700.0 million as of June 30, 2025 and December 31, 2024. The Company believes that the fair value of all other debt instruments approximates their carrying value. Credit Agreement On March 28, 2022, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. as Administrative Agent and the lenders named therein, which was subsequently amended on November 17, 2022 and November 30, 2022. The Credit Agreement provides for an unsecured term loan facility of $1,390.0 million (the "Term Facility") and an unsecured revolving loan of $1,570.0 million (the "Multicurrency Revolving Facility"). The Term Facility and the Multicurrency Revolving Facility both mature on March 28, 2027. The Term Facility requires quarterly amortization at 5.0% per annum, unless previously prepaid. Per the terms of the Credit Agreement, prepayments can be made without penalty and are applied to the next payment due. On June 30, 2025, the Company prepaid $420.0 million of principal outstanding under the Term Facility with proceeds from the Securitization Facility (see Note 7 – Receivables Securitization). Borrowings under the Credit Agreement bear interest at floating rates based upon indices determined by the currency of the borrowing (SOFR or an alternative base rate for US Dollar borrowings) or at an alternative base rate, in each case, plus an applicable margin. As of June 30, 2025, the Company had no standby letters of credit issued under the Multicurrency Revolving Facility, and $1,547.0 million of available borrowing capacity. For the three months ended June 30, 2025 and June 30, 2024 under the Multicurrency Revolving Facility, the average daily balance in borrowings was $101.1 million and $67.4 million, respectively. For the six months ended June 30, 2025 and June 30, 2024 under the Multicurrency Revolving Facility, the average daily balance in borrowings was $91.3 million and $83.0 million, respectively. The Company paid a non-use fee of 0.25% as of June 30, 2025 on the aggregate unused amount of the Multicurrency Revolving Facility at a rate determined by reference to its consolidated funded debt to consolidated EBITDA ratio. Weighted average interest rates on the Term Facility and Multicurrency Revolving Facility are as follows:
Altra Notes On March 27, 2023, in connection with the Altra Transaction, the Company assumed $18.1 million aggregate principal amount of 6.125% senior notes due 2026 (the “Altra Notes”). The Altra Notes will mature on October 1, 2026. The Altra Notes may be redeemed at the option of the issuer on or after October 1, 2023. The Altra Notes are guaranteed on a senior unsecured basis by certain of the Company's domestic subsidiaries. Finance Leases The weighted average discount rate associated with the Company's finance leases was 6.8% as of June 30, 2025 and 5.2% as of June 30, 2024. Compliance with Financial Covenants The Credit Agreement requires the Company to meet specified financial ratios and to satisfy certain financial condition tests. The Company was in compliance with all financial covenants as of June 30, 2025.
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