10.  CREDIT FACILITIES

Total long-term non-revolving debt consists of the following:

Information on the Company's revolving credit facilities is as follows:

67

Future maturities of total debt are as follows:

Term Loan and Line of Credit with PNC Bank

The Company has a revolving line of credit and term loan credit facility with PNC Bank, National Association, as administrative agent, and the lenders party thereto. The revolving line of credit allows for up to an aggregate maximum principal amount of $400,000. The credit agreement includes an accordion feature that permits the increase of the facility by up to an additional $200,000. Borrowings under the line of credit bear interest at defined rates plus an applicable margin based on the Company’s leverage ratio.

The credit agreement requires the Company to comply with a number of restrictive covenants, including limitations on the Company’s ability to incur indebtedness; create or maintain liens on its property or assets; make investments, loans and advances; repurchase shares of its common stock; engage in acquisitions, mergers, joint ventures, consolidation and asset sales; and pay dividends and distributions. The Company (together with its subsidiaries) is also required to comply with certain financial tests, including a minimum interest coverage ratio (as defined therein) of 3.0 to 1.0 and a maximum leverage ratio of 3.75 to 1.0. As of December 28, 2019, the Company was in compliance with all covenants related to the credit agreement.

The credit facility is guaranteed by the Company’s U.S. domestic subsidiaries and requires any future U.S. domestic subsidiaries to join as guarantors. In addition, the credit facility is required to be secured by substantially all of the assets of the Company and its current and future U.S. domestic subsidiaries of the Company.

During 2019, the Company exchanged a portion of the USD denominated borrowings on the line of credit for €100,000 in order to hedge currency exposure in foreign operations. The Company designated the borrowings as a net investment hedge, see additional information in Note 9.

The effective interest rate on the credit agreement at December 28, 2019, was 2.88%. Interest expense recognized on the credit agreement during the years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $14,149, $12,799 and $4,082, respectively.

Other Credit Facilities

The Company has entered into a credit agreement with Shinhan Bank that provides a term loan of 1,000,000 Korean won. The loan matures in March 2020, at which time the full amount will become due.  Interest is charged at a one-year variable rate, 1.87% as of December 28, 2019.  

The Company had a revolving line of credit with National Australia Bank that allowed for maximum borrowings of 3,000 Australian dollars. The line was secured by assets of Customer Fluidpower. At December 29, 2018, no amounts were drawn on the line. The facility matured on January 31, 2019, at which time the facility was closed.

The Company’s other long-term debt consists of auto loans payable to National Australia Bank. Principal and interest payments are due monthly. The loans mature at various dates through July 2023. Interest is charged at various rates ranging from 4.5% to 5.1%.