The following information was taken from the 2012 financial statements of Dentsply International, a company that develops, manufactures, and markets medical equipment and supplies for the global dental market.
Long-Term Debt
Long-term debt consisted of the following:

The Company has a $500.0 million five-year revolving credit agreement with participation from 16 banks, which expires in July 2016. The revolving credit agreement contains a number of covenants and two financial ratios, which the Company is required to satisfy. The most restrictive of these covenants pertain to asset dispositions and prescribed ratios of indebtedness to total capital and operating income excluding depreciation and amortization to interest expense. Any breach of any such covenants or restrictions would result in a default under the existing borrowing documentation that would permit the lenders to declare all borrowings under such documentation to be immediately due and payable and, through cross default provisions, would entitle the Company's other lenders to accelerate their loans. At December 31, 2012, the Company was in compliance with these covenants.
The term loans and private placement notes ("PPN") contain certain affirmative and negative covenants relating to the Company's operations and financial condition. At December 31,
2012, the Company was in compliance with all debt covenants.
At December 31, 2012, the Company had total unused lines of credit, including lines available under its short-term arrangements and revolving credit agreement, of $527.4 million.
The table below reflects the contractual maturity dates of the various borrowings at
December 31, 2012 (in thousands):
2013......................................................$ 250,878
2014.........................................................221,865
2015........................................................102,230
2016........................................................448,440
2017.............................................................442
2018 and Beyond........................................449,058
..........................................................$1,472,913

Required:
1. How did the amount and composition of the company's long-term borrowing change between 2011 and 2012?
2. Explain why the fair value of the debt at December 31, 2012 is different from the book value.
3. Calculate the weighted-average rate of interest on the company's long-term debt as of December 31, 2012. You should ignore "Other borrowings, various currencies and rates."
4. Based on your answer to requirement 3, estimate the amount of interest expense Dentsply will record in 2013.
5. How much cash will the company pay out to debt holders in 2013?
6. Based on your answers to questions 2, 4, and 5 and other information provided for Dentsply, should investors be concerned about Dentsply's ability to meet its debt obligations? Explain.

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2012 2011 Principal Interest Principal Interest $ in thousands) Floating rate senior notes $250 million due August 2013 September 2014 March 2016 August 2016 September 2016 August 2021 $250,000 Term loan Japanese yen denominated expiring Private placement notes $250 million expiring Fixed rate senior notes $300 million due Term loan Swiss francs denominated expiring Fixed rate senior notes S450 million due 1.8% 1.1% 4.1% 2.8% 1.2% 4.1% $250,000 162.956 254,512 299.603 69.197 2.0% 1.1% 4.1% 2.8% 1.2% 4.1% 144,681 299.689 71,027 448.653 4.303 S1,472,913 448,497 6,654 $1,491,419 Other borrowings, various currencies and rates Less: Curre nt portion (included in notes payable and current portion of long-term debt) 250.878 1,409 Long-term portion 2011 2010 in milions) Net income Cash from operating activities Fair value of long-term debt, including current portion 155.2 1,512.5 2012 318.5 S 247.4 267.3 369.7393.5 377.5