v3.25.3
DEBT
9 Months Ended
Sep. 30, 2025
DEBT  
DEBT

NOTE 10 — DEBT

At September 30, 2025 and December 31, 2024, debt consisted of the following:

    

    

    

September 30, 2025

    

December 31, 2024

Long-term debt

 

Interest Rate

 

 

  

 

  

Senior Unsecured Notes

2015 Notes - Series A due August 20, 2025(1)

3.15

%

$

$

100,000

2015 Notes - Series B due August 20, 2030

3.35

%

100,000

100,000

2015 Notes - Series C due April 1, 2035

3.61

%

50,000

50,000

2015 Notes - Series D due April 1, 2045

4.02

%

100,000

100,000

2016 Notes - Series A due October 20, 2028

2.75

%

100,000

100,000

2016 Notes - Series B due October 20, 2033

3.03

%

100,000

100,000

2016 Notes - Series C due October 20, 2037

3.27

%

100,000

100,000

2016 Notes - Series D due October 20, 2041

3.52

%

50,000

50,000

2024 Notes - Series A due August 22, 2029

5.55

%

75,000

75,000

2024 Notes - Series B due August 22, 2031

5.62

%

75,000

75,000

2024 Notes - Series C due June 20, 2034

5.74

%

400,000

400,000

Other borrowings due through 2030

Variable(2)

 

10

 

10

 

1,150,010

 

1,250,010

Plus interest rate swap adjustment

2,847

3,355

Less current portion(1)

 

4

 

100,004

Less debt issuance costs

2,538

 

2,810

Long-term debt, less current portion

 

1,150,315

 

1,150,551

Short-term debt

 

Amounts due to banks

Variable(3)

 

88,199

 

10,520

Current portion long-term debt(1)

 

4

 

100,004

Total short-term debt

 

88,203

 

110,524

Total debt

$

1,238,518

$

1,261,075

(1)On August 20, 2025, the Company repaid the Series A notes in full at maturity.
(2)Interest rate was 7.97% at both September 30, 2025 and December 31, 2024.
(3)Weighted average interest rate on the revolving credit facility was 5.2% as of September 30, 2025. Weighted average interest rate of other lines of credit related to liquidity needs in a hyperinflationary country was 44.7% and 47.8% as of September 30, 2025 and December 31, 2024, respectively.

Senior Unsecured Notes

As of September 30, 2025, the Company’s total weighted average effective interest rate and remaining weighted average tenure of the senior unsecured notes is 4.16%, including the impact from terminated swap agreements, and 8.9 years, respectively. The senior unsecured notes contain certain affirmative and negative covenants. As of September 30, 2025, the Company was in compliance with all of its debt covenants relating to the senior unsecured notes.

On August 20, 2025, the Company repaid its $100,000 2015 Series A notes in full at maturity.

Revolving Credit Agreements

On June 20, 2024, the Company entered into a $1 billion revolving credit facility, which may be increased, subject to certain conditions including the consent of its lenders, by an additional amount up to $300,000. The revolving credit facility matures on June 20, 2029. The revolving credit facility will initially bear interest on outstanding borrowings at a per annum rate equal to secured overnight finance rate (“SOFR”) plus 1.10% and could fluctuate based on the Company’s total net leverage ratio at a spread ranging from SOFR plus 1.10% to SOFR plus 1.60%. The financial covenants consist of a maximum net leverage ratio of 3.5x EBITDA and a minimum interest coverage ratio of 2.5x EBITDA. The revolving credit facility contains customary representations and warranties, as well as customary affirmative, negative and financial covenants for credit facilities of this type (subject to negotiated baskets and exceptions), including limitations on the Company and its subsidiaries with respect to liens, investments, distributions, mergers and acquisitions, dispositions of assets and transactions with affiliates. As of September 30, 2025, the Company was in compliance with all of its covenants. The Company had borrowings under the revolving credit facility of $85,000 as of September 30, 2025.

The Company has other lines of credit and debt agreements totaling $31,386. As of September 30, 2025, the Company was in compliance with all of its covenants and had outstanding debt under short-term lines of credit of $3,199.

Fair Value of Debt

At September 30, 2025 and December 31, 2024, the fair value of long-term debt, including the current portion, was approximately $1,124,349 and $1,184,313, respectively. The approximate fair value of the Company’s long-term debt, including current maturities, was based on a valuation model using Level 2 observable inputs using available market information and methodologies requiring judgment. The carrying value of this debt at such dates was $1,150,319 and $1,250,555, respectively. Since judgment is required in interpreting market information, the fair value of the debt is not necessarily the amount which could be realized in a current market exchange.