Borrowings |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Debt Disclosure [Abstract] | |
| Borrowings | Borrowings Credit Agreements In April 2023, PPG entered into a €500 million term loan credit agreement (the "Term Loan"). The Term Loan contains covenants that are consistent with those in the Credit Agreements discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. In April 2023, PPG borrowed €500 million under the Term Loan. In December 2023, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €250 million. In January 2024, PPG borrowed the additional €250 million. In December 2024, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €300 million. In January 2025, PPG borrowed the additional €300 million. In January 2026, the Term Loan was amended to extend its maturity. Based on this amendment, the Term Loan terminates and all amounts outstanding are payable in January 2029. The Term Loan is denominated in euro and has been designated as a hedge of the net investment in the Company’s European operations. For more information, refer to Note 12 “Financial Instruments, Hedging Activities and Fair Value Measurements.” In October 2025, PPG amended and restated its five-year credit agreement ("the Credit Agreement") dated as of August 30, 2019 to extend its maturity. The amended Credit Agreement provides for a $2.3 billion unsecured revolving credit facility, of which $2,148 million of the total commitment has a term through July 2029 and $152 million of the total commitment has a term through July 2028. The Company has the ability to increase the size of the Credit Agreement by up to an additional $750 million, subject to the receipt of lender commitments and other conditions precedent. In May 2026, PPG entered into a €250 million unsecured revolving credit agreement (the “Euro Credit Agreement”) that expires in May 2028. The Company has the right, subject to certain conditions set forth in the Credit Agreement and the Euro Credit Agreement, to designate certain subsidiaries of the Company as borrowers. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the applicable agreement. There were no amounts outstanding under either the Credit Agreement or the Euro Credit Agreement as of September 30, 2026 and December 31, 2025. Borrowings under the Credit Agreement may be made in U.S. Dollars or in euros, and borrowings under the Euro Credit Agreement are denominated in euros. The Credit Agreement and the Euro Credit Agreement provide that loans will bear interest at rates based, at the Company’s option, on one of two specified base rates or applicable benchmark rates, plus a margin based on certain formulas defined in each agreement. Additionally, each agreement contains a Commitment Fee on the amount of unused commitments ranging from 0.060% to 0.125% per annum. The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. Commercial paper borrowings outstanding under the Credit Agreement were zero as of both September 30, 2026 and December 31, 2025. The Credit Agreement and the Euro Credit Agreement contain usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Credit Agreement and the Euro Credit Agreement contain, among other things, customary events of default that would permit the lenders to accelerate the loans, including the failure to make timely payments when due under the applicable agreement or other material indebtedness, the failure to satisfy covenants contained in the applicable agreement, a change in control of the Company and specified events of bankruptcy and insolvency. The Term Loan, Credit Agreement and Euro Credit Agreement also require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of September 30, 2026, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 43%. Other Long-term Debt Activities In June 2026, PPG completed an offering of 180 million Swiss francs (CHF) 1.2175% Notes due 2030 and CHF140 million 1.6648% Notes due 2034. These notes were issued pursuant to the terms and conditions governing the notes under Swiss law. The terms and conditions include covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness and engage in certain sale-leaseback transactions. The notes also require the Company to make an offer to repurchase notes upon the occurrence of a Change of Control Event (as defined therein) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time under these terms. The aggregate cash proceeds from the notes, net of discounts and fees, was $403 million. The notes are denominated in Swiss francs and are listed on the SIX Swiss Exchange. The notes have been designated as hedges of net investments in the Company’s Swiss operations. Refer to Note 12 “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. In March 2026, PPG's $700 million 1.2% notes matured, and the Company repaid this obligation using cash on hand. In March 2025, PPG completed a public offering of €900 million 3.250% Notes due 2032. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2025 Indenture"). The 2025 Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase Notes upon a Change of Control Triggering Event (as defined in the 2025 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $940 million. The notes are denominated in euro and a portion of the notes have been designated as hedges of net investments in the Company’s European operations. Refer to Note 12 “Financial Instruments, Hedging Activities and Fair Value Measurements” for additional information. Restrictive Covenants and Cross-Default Provisions As of September 30, 2026, PPG was in full compliance with the restrictive covenants under its various credit agreements, loan agreements and indentures. Additionally, the Company’s credit agreements contain customary cross-default provisions. These provisions provide that a default on a debt service payment of $50 million or more depending on the agreement for longer than the grace period provided under another agreement may result in an event of default under this agreement. None of the Company’s primary debt obligations are secured or guaranteed by the Company’s affiliates. Letters of Credit and Surety Bonds The Company had outstanding letters of credit and surety bonds of $271 million and $272 million as of September 30, 2026 and December 31, 2025, respectively.
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