Company: ACCO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024931
Chunk: 15

Company: ACCO BRANDS Corp
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7A
Chunk 15
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 is defined in the Credit Agreement, plus an "applicable rate." The applicable rate applied to outstanding Euro, Australian and Canadian dollar denominated loans and Base Rate loans is based on the Company’s Consolidated Leverage Ratio as follows:

    Consolidated Leverage Ratio
     
    Applicable Rate on Euro/AUD/CDN Dollar Loans
     
    Applicable Rate on Base Rate Loans
     
    Undrawn Fee

    > 4.25
     
    2.25 %
     
    1.25 %
     
    0.375 %

    > 3.5
     
    2.00 %
     
    1.00 %
     
    0.350 %

    > 2.5
     
    1.75 %
     
    0.75 %
     
    0.300 %

    ≤ 2.5
     
    1.50 %
     
    0.50 %
     
    0.250 %

As of December 31, 2024, the applicable rate on Euro, Australian and Canadian dollar loans was 2.00 percent and the applicable rate on Base Rate loans was 1.00 percent. Undrawn amounts under the Revolving Facility are subject to a commitment fee rate of 0.25 percent to 0.375 percent per annum, depending on the Company’s Consolidated Leverage Ratio. As of December 31, 2024, the commitment fee rate was 0.35 percent.

The Senior Unsecured Notes have a fixed interest rate and, accordingly, are not exposed to market risk resulting from changes in interest rates. However, the fair market value of our long-term fixed interest rate debt is subject to interest rate risk. 

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Generally, the fair market value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise. In addition, fair market values will also reflect the credit markets' view of credit risk spreads and our risk profile. These interest rate changes may affect the fair market value of our fixed interest rate debt and any decisions we may make to repurchase the Senior Unsecured Notes, but do not impact our earnings or cash flow.

The following table summarizes information about our major debt components as of December 31, 2024, including the principal cash payments and interest rates.

Debt Obligations

    Stated Maturity Date

    (in millions)

    2025

    2026