Debt

12 Months Ended

Dec. 31, 2021

Debt [Abstract]

Debt

6. Debt

Long-term Debt

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

(In thousands)	2021			2020
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		76,017			81,672
3.06% Euro-denominated senior notes due November 2023		43,487			46,722
1.27% Euro-denominated senior notes due May 2024		56,850			61,080
1.71% Euro-denominated senior notes due May 2027		45,480			48,864
2.53% British Pound-denominated notes due November 2023		33,829			34,176
2.76% British Pound-denominated notes due November 2025		33,829			34,176
Term loan		-			8,375
Revolving Credit Facilities		86,000			83,324
Various other notes		1,137			1,647
Total debt		503,629			527,036
Less debt fees		(136	)		(143	)
Less current portion		(487	)		(8,889	)
Total long-term debt	$	503,006		$	518,004

In May 2021, the Company executed an amended and restated credit agreement with a syndicate of banks to extend the maturity of Sensient’s $350 million multi-currency revolving credit facility from May 2022 to May 2026 and to modify certain other provisions of the credit agreement as set forth therein. At December 31, 2020, the Company’s term loan borrowings totaled $8.4 million; term loan repayments were completed in 2021. A term loan was not issued as part of the 2021 amended credit agreement. Borrowings under the revolving credit facility 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.

In October 2021, the Company amended its accounts receivable securitization program with Wells Fargo Bank N.A. (Wells Fargo) to reduce the program amount from $65 million to $30 million. Under the amended program, Wells Fargo has extended a secured loan (Secured Loan) of up to $30 million to the Company secured by Wells Fargo’s undivided interests in certain of the Company’s trade accounts receivables. The interest rate on the Secured Loan is LIBOR plus 0.75%. 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, 2021, the amount was fully drawn.

The borrowings under the revolving credit facility, excluding borrowings on the accounts receivable securitization program, had an average interest rate of 1.33% and 1.35% for the years ended December 31, 2021 and 2020, respectively.

The aggregate amounts of contractual maturities on long-term debt subsequent to December 31, 2021, are as follows:

(In thousands)
Year ending December 31,
2022	$	106,504
2023		152,834
2024		83,981
2025		58,830
2026		56,000
Thereafter		45,480
Total long-term debt maturities	$	503,629

The Company had $291.2 million available under the revolving credit facility and $22.6 million available under other lines of credit from several banks at December 31, 2021.

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, 2021. The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2021:

	Actual	Required
Debt to EBITDA(1) (Maximum)	2.04	<3.50
Interest Coverage (Minimum)	21.60	>3.00

⁽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 $2.8 million and $2.7 million as of December 31, 2021 and 2020, respectively.

Short-term Borrowings

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

(In thousands)	2021		2020
U.S. credit facilities	$	7,284	$	138
Current maturities of long-term debt		487		8,889
Loans of foreign subsidiaries		768		220
Total	$	8,539	$	9,247

The weighted average interest rates on short-term borrowings were 1.55% and 1.36% at December 31, 2021 and 2020, respectively.