Debt

12 Months Ended

Dec. 31, 2020

6. Debt

Long-term Debt

Long-term debt consisted of the following unsecured obligations at December 31:

(In thousands)	2020			2019
3.66% senior notes due November 2023	$	75,000		$	75,000
3.65% senior notes due May 2024		27,000			27,000
4.19% senior notes due November 2025		25,000			25,000
1.85% Euro-denominated senior notes due November 2022		81,672			74,968
3.06% Euro-denominated senior notes due November 2023		46,722			42,887
1.27% Euro-denominated senior notes due May 2024		61,080			56,066
1.71% Euro-denominated senior notes due May 2027		48,864			44,853
2.53% British Pound-denominated notes due November 2023		34,176			33,143
2.76% British Pound-denominated notes due November 2025		34,176			33,143
Term loan		8,375			51,438
Revolving Credit Facilities		83,324			134,393
Various other notes		1,647			783
Total debt		527,036			598,674
Less debt fees		(143	)		(175	)
Less current portion		(8,889	)		-
Total long-term debt	$	518,004		$	598,499

In October 2019, the Company amended its accounts receivable securitization program with Wells Fargo Bank N.A. (Wells Fargo) to reduce the program amount from $70 million to $65 million. Under the amended program, Wells Fargo has extended a secured loan (Secured Loan) of up to $65 million to the Company secured by Wells Fargo’s undivided interests in certain of the Company’s trade accounts receivables. The $65 million facility was renewed in October 2020. The interest rate on the Secured Loan is LIBOR plus 1.00%. The Company has the intent and ability either to repay the Secured Loan with available funds from the Company’s existing long-term revolving credit facility, or to extend its accounts receivable program with Wells Fargo when it matures. Accordingly, the Secured Loan has been classified as long-term debt on the Company’s Consolidated Balance Sheet and is included with the Revolving Credit Facilities above. As of December 31, 2020, the amount was fully drawn.

In May 2017, the Company executed an amended and restated credit agreement with a syndicate of banks to, among other things, (a) increase Sensient’s term loan facility by $30 million (from $115 million to $145 million), (b) extend the maturity of Sensient’s $350 million multi-currency revolving credit facility from November 2020 to May 2022, and (c) modify certain other provisions of the credit agreement as set forth therein. At December 31, 2020, the Company’s term loan borrowings total $8.4 million, with repayments completing in 2021. Borrowings under both the revolving credit and term loan facilities bear interest at a variable rate, based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below.

The borrowings under the term loan had an average interest rate of 2.20% and 3.83% for the years ended December 31, 2020 and 2019, respectively.

The borrowings under the revolving credit facility, excluding borrowings on the accounts receivable securitization program, had an average interest rate of 1.35% and 1.44% for the years ended December 31, 2020 and 2019, respectively.

The aggregate amounts of contractual maturities on long-term debt subsequent to December 31, 2020, are as follows:

(In thousands)
Year ending December 31,
2021	$	73,892
2022		100,481
2023		156,414
2024		88,210
2025		59,176
Thereafter		48,863
Total long-term debt maturities	$	527,036

The Company had $329.0 million available under the revolving credit facility and $45.8 million available under other lines of credit from several banks at December 31, 2020.

Substantially all of the senior financing obligations contain restrictions concerning interest coverage, borrowings, and investments. The Company is in compliance with all of these restrictions at December 31, 2020. The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2020:

	Actual	Required
Debt to EBITDA⁽¹⁾ (Maximum)	2.40	<3.50
Interest Coverage (Minimum)	6.61	>2.00

⁽¹⁾

Debt to EBITDA is defined in the Company’s debt covenants as total funded debt divided by the Company’s consolidated operating income excluding non-operating gains and losses and depreciation and amortization.

The Company had stand-by and trade letters of credit outstanding of $2.7 million and $2.6 million as of December 31, 2020 and 2019, respectively.

Short-term Borrowings

The Company’s short-term borrowings consisted of the following items at December 31:

(In thousands)	2020		2019
U.S. credit facilities	$	138	$	20,280
Current maturities of long-term debt		8,889		-
Loans of foreign subsidiaries		220		332
Total	$	9,247	$	20,612

The weighted average interest rates on short-term borrowings were 1.36% and 2.53% at December 31, 2020 and 2019, respectively.