Short-Term Debt

3 Months Ended

Nov. 30, 2012

Short-Term Debt

Short-Term Debt

Note 5: Short-Term Debt

The Company had a seasonal line of credit through November 2, 2012, with a consortium of lenders led by CoBank, ACB of $350.0 million along with an additional $50.0 million which can be utilized for either short-term or long-term borrowing purposes.  On November 2, 2012, the Company entered into a Fourth Amendment to the Amended and Restated Credit Agreement between the Company and CoBank, ACB and received a Facility Increase Notice from CoBank, ACB increasing the Company’s seasonal line of credit from $350.0 million to $410.0 million through May 31, 2013 at which time the seasonal line of credit will revert back to $350.0 million through July 19, 2015.  The availability of the additional $50.0 million which can be utilized for either short-term or long-term borrowing purposes remains unchanged during this time.  The Company also has a line of credit with Wells Fargo Bank for $1.0 million.  The Company’s commercial paper program provides short-term borrowings up to the amount of the CoBank, ACB seasonal line of credit.  Any borrowings under the commercial paper program along with outstanding short-term letters of credit will act to reduce the available credit under the CoBank, ACB seasonal line of credit by a commensurate amount.

The Company can also utilize the Commodity Credit Corporation (CCC) to meet its short-term borrowing needs.  The Company can borrow funds on a non-recourse basis from the CCC, with repayment of such funds secured by sugar.  The limitations on such borrowings are based on the amount of the Company’s sugar inventory and certain loan covenant restrictions by CoBank, ACB.  As of November 30, 2012, the Company had the capacity to obtain non-recourse loans from the CCC of approximately $183.0 million. The Company has not utilized the CCC during fiscal 2013.

As of November 30, 2012, the Company had outstanding commercial paper of $386.4 million at interest rates of .42% to .58% and maturity dates between December 3, 2012 and February 28, 2013.  The Company had no outstanding short-term debt with CoBank, ACB, Wells Fargo Bank or the CCC as of November 30, 2012.  The Company had $3.3 million of short-term letters of credit outstanding and $3.3 million of the $50.0 million additional line of credit was utilized for long-term borrowing purposes as of November 30, 2012.  The unused line of credit as of November 30, 2012 was $68.0 million which includes $46.7 million that can also be utilized for long-term borrowing purposes.

As of November 30, 2011, the Company had outstanding commercial paper of $361.8 million at interest rates of .37% to .50% and maturity dates between December 1, 2011 and January 27, 2012.  The Company had no outstanding short-term debt with CoBank, ACB, Wells Fargo Bank or the CCC as of November 30, 2011.  The Company had $3.3 million of short-term letters of credit outstanding and $9.3 million of the $50.0 million additional line of credit was utilized for long-term borrowing purposes as of November 30, 2011.  The unused line of credit as of November 30, 2011 was $26.6 million which includes $25.6 million that can also be utilized for long-term borrowing purposes.