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Warranty
A provision is recognized for expected warranty claims on products and services during the last year, based on past experience and known issues. It is expected that most of these costs will be incurred in the next financial year.
Other
Other provisions relate largely to open legal and insurance claims and onerous contracts. No one claim is significant.
9.LONG-TERM DEBT
2012 2011----------------------------------------------------------------------------Bank credit facility $ 26,547 $ -Senior debentures 135,883 137,163Debt issuance costs, net of amortization (2,663) (3,068)----------------------------------------------------------------------------Total long-term debt 159,767 134,095Less current portion 1,372 1,280---------------------------------------------------------------------------- $ 158,395 $ 132,815--------------------------------------------------------------------------------------------------------------------------------------------------------
All debt is unsecured.
The Company maintains a $200 million committed credit facility. The facility matures in September 2017. Debt incurred under the facility is unsecured and ranks pari passu with debt outstanding under Toromont's existing debentures. The facility was amended in September 2012 to extend the term at improved rates. Interest is based on a floating rate, primarily bankers' acceptances and prime, plus applicable margins and fees based on the terms of the credit facility. Debt issuance costs of $369 were adjusted against the carrying value of the long-term debt.
At December 31, 2012, standby letters of credit issued utilized $24.1 million of the credit lines (December 31, 2011 - $24.8 million).
Terms of the senior debentures are:
-- $125,000, 4.92% senior debentures due October 13, 2015, interest payable semi-annually, principal due on maturity; and-- $10,883, 7.06% senior debentures due March 29, 2019, interest payable semi-annually through September 29, 2009; thereafter, blended principal and interest payments through to maturity.
These credit arrangements include covenants, restrictions and events of default usually present in credit facilities of this nature, including requirements to meet certain financial tests periodically and restrictions on additional indebtedness and encumbrances.
Scheduled principal repayments and interest payments on long-term debt are as follows:
Principal Interest----------------------------------------------------------------------------2013 $ 1,372 $ 7,6192014 1,471 7,5212015 126,576 6,0672016 1,690 1,1522017 28,358 8492018 to 2019 2,963 1,480---------------------------------------------------------------------------- $ 162,430 $ 24,688--------------------------------------------------------------------------------------------------------------------------------------------------------
