Short-Term Borrowings

9 Months Ended

Aug. 31, 2020

Short-term borrowings at August 31, 2020 and November 30, 2019 include the following and mature in one year or less (in thousands):



	August 31, 2020		November 30, 2019
Bank loans (1)	$	776,752	$	527,509
Floating rate puttable notes (1)	6,800		—
Equity-linked notes (2)	21,829		20,981
Total short-term borrowings	$	805,381	$	548,490


(1)	These Short-term borrowings are recorded at cost in our Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their liquid and short-term nature.


(2)	See Note 4, Fair Value Disclosures, for further information on these notes.

At August 31, 2020, the weighted average interest rate on short-term borrowings outstanding is 1.83% per annum.

During the nine months ended August 31, 2020, we issued floating rate puttable notes with a principal amount of $6.8 million and equity-linked notes with a principal amount of $5.0 million and our equity-linked notes with a principal amount of $5.2 million matured on March 13, 2020. Subsequent to quarter-end, on October 7, 2020, our equity-linked notes with a principal amount of $15.1 million matured.

One of our subsidiaries has a credit facility agreement (“Credit Facility”) with JPMorgan Chase Bank, N.A. under which we have borrowed for a committed amount of $246.0 million at August 31, 2020, which is included in bank loans. Interest is based on an annual alternative base rate or an adjusted London Interbank Offered Rate (“LIBOR”), as defined in the Credit Facility. The Credit Facility contains certain covenants that, among other things, require Jefferies Group LLC to maintain a specified level of tangible net worth. The covenants also require the borrower to maintain specified leverage amounts and impose certain restrictions on the borrower’s future indebtedness. During the nine months ended August 31, 2020, we were in compliance with all debt covenants under the Credit Facility.

One of our subsidiaries has a credit facility agreement with the Royal Bank of Canada (“RBC Credit Facility”) for a committed amount of $200.0 million, which is included in bank loans. Interest is based on a rate per annum equal to LIBOR plus an applicable margin of 2.05%. The RBC Credit Facility contains certain covenants that, among other things, require Jefferies Group LLC to maintain a specified level of tangible net worth. The covenants also impose certain restrictions on the borrower’s future indebtedness. At August 31, 2020, we were in compliance with all debt covenants under the RBC Credit Facility.

The Bank of New York Mellon has agreed to make revolving intraday credit advances (“Intraday Credit Facility”) for an aggregate committed amount of $150.0 million. The Intraday Credit facility is structured so that advances are generally repaid before the end of each business day. However, if an advance is not repaid by the end of any business day, the advance is converted to an overnight loan. Intraday loans accrue interest at a rate of 0.12%. Interest is charged based on the number of minutes in a day the advance is outstanding. Overnight loans are charged interest at the base rate plus 3% on a daily basis. The base rate is the higher of the federal funds rate plus 0.50% or the prime rate in effect at that time. The Intraday Credit Facility contains financial covenants, which include a minimum regulatory net capital requirement for Jefferies LLC. At August 31, 2020, we were in compliance with debt covenants under the Intraday Credit Facility.