v3.26.1
Notes Payable and Long-Term Debt
 6 Months Ended
Feb. 28, 2026
Debt Disclosure [Abstract]  
Notes Payable and Long-Term Debt Notes Payable and Long-Term Debt
Our notes payable and long-term debt are subject to various restrictive requirements for maintenance of minimum consolidated net worth and other financial ratios. We were in compliance with all debt covenants as of February 28, 2026. Notes payable as of February 28, 2026, and August 31, 2025, consisted of the following:
February 28,
2026		August 31,
2025
(Dollars in thousands)
Notes payable$852,514 $584,226 
CHS Capital notes payable1,142,594 568,231 
Total notes payable$1,995,108 $1,152,457 
    
    Our primary line of credit is a five-year unsecured revolving credit facility with a syndicate of domestic and international banks. The credit facility provides a committed amount of $2.8 billion that expires on April 21, 2028. There were $250.0 million and $180.0 million in borrowings outstanding on this facility as of February 28, 2026, and August 31, 2025. We also maintain certain uncommitted bilateral facilities to support our working capital needs.

    We have a receivables and loans securitization facility ("Securitization Facility") with certain unaffiliated financial institutions ("Purchasers"). Under the Securitization Facility, we and certain of our subsidiaries ("Originators") sell trade accounts and notes receivable ("Receivables") to Cofina Funding, LLC ("Cofina"), a wholly-owned, bankruptcy-remote, indirect subsidiary of CHS. Cofina in turn transfers the Receivables to the Purchasers, and this arrangement is accounted for as secured financing. We use the proceeds from the sale of Receivables under the Securitization Facility for general corporate purposes, and settlements are made on a monthly basis. The amount available under the Securitization Facility fluctuates over time based on the total amount of eligible Receivables generated during the normal course of business. The Securitization Facility consists of a committed portion with a maximum availability of $850.0 million and an uncommitted portion with a maximum availability of $250.0 million. As of February 28, 2026, total availability under the Securitization Facility was $954.3 million, of which $850.0 million was utilized. As of August 31, 2025, total availability under the Securitization Facility was $802.6 million, of which $296.0 million was utilized.

    We also have a repurchase facility ("Repurchase Facility"). Under the Repurchase Facility, we can obtain repurchase agreement financing up to $250.0 million for certain eligible receivables and notes receivables of the Originators. As of
February 28, 2026, we fully utilized the amount available to us under the Repurchase Facility totaling $206.8 million. As of August 31, 2025, $159.7 million was utilized.

During the period ended February 28, 2026, we drew $300.0 million on our revolving term loan facility (the "Facility") for long-term capital planning purposes and utilized the proceeds to reduce short-term amounts outstanding. Our intent is to allow the balance outstanding to revert to a nonrevolving term loan that is payable on October 29, 2029. As of February 28, 2026, and August 31, 2025, there were $300.0 million and no amounts outstanding under this Facility, respectively.

The following table presents summarized long-term debt (including the current portion) as of February 28, 2026, and August 31, 2025.
February 28,
2026		August 31,
2025
 (Dollars in thousands)
Private placement debt$1,783,000 $1,783,000 
Term loan300,000 — 
Finance lease liabilities51,975 55,198 
Deferred financing costs(3,751)(3,894)
Other1,456 1,529 
Total long-term debt2,132,680 1,835,833 
Less current portion149,064 90,447 
Long-term portion$1,983,616 $1,745,386 

Interest expense for the three months ended February 28, 2026 and 2025, was $43.8 million and $25.2 million, respectively, net of capitalized interest of $7.0 million and $7.1 million, respectively. Interest expense for the six months ended February 28, 2026 and 2025, was $81.1 million and $52.9 million, respectively, net of capitalized interest of $14.4 million and $14.6 million, respectively.