Notes Payable and Long-Term Debt

Our notes payable and long-term debt are subject to various restrictive requirements for maintenance of minimum consolidated net worth and other financial ratios. We were in compliance with our debt covenants as of May 31, 2019. The table below summarizes our notes payable as of May 31, 2019, and August 31, 2018.



	May 31, 2019		August 31, 2018
	(Dollars in thousands)
Notes payable	$	2,021,216	$	1,437,264
CHS Capital notes payable	742,009		834,932
Total notes payable	$	2,763,225	$	2,272,196

On May 31, 2019, our primary line of credit was a five-year, unsecured revolving credit facility with a committed amount of $3.0 billion that expires in September 2020. The outstanding balance on this facility was $902.0 million as of May 31, 2019. There was no outstanding balance at August 31, 2018.

We have a receivables and loans securitization facility (the "Securitization Facility") with certain unaffiliated financial institutions (the "Purchasers"). Under the Securitization Facility, we and certain of our subsidiaries (the "Originators") sell trade accounts and notes receivable (the "Receivables") to Cofina Funding, LLC ("Cofina"), a wholly-owned bankruptcy-remote indirect subsidiary of CHS. Cofina in turn transfers the Receivables to the Purchasers, which is accounted for as a secured borrowing. During the period from July 2017 through an amendment of the Securitization Facility in June 2018, CHS accounted for Receivables sold under the Securitization Facility as a sale of financial assets pursuant to ASC 860, Transfers and Servicing, and the Receivables sold were derecognized from our Consolidated Balance Sheets. We use the proceeds from the sale of Receivables under the Securitization Facility for general corporate purposes and settlements are made on a monthly basis. The Securitization Facility was amended on June 27, 2019, to extend its termination date to June 26, 2020, which termination date may be further extended.

On September 4, 2018, we entered into a repurchase facility (the "Repurchase Facility") related to the Securitization Facility. Under the Repurchase Facility, we can borrow up to $150 million, collateralized by a subordinated note issued by Cofina in favor of the Originators and representing a portion of the outstanding balance of the Receivables sold by the Originators to Cofina under the Securitization Facility. As of May 31, 2019, the outstanding balance under the Repurchase Facility was $150 million.

Interest expense for the three months ended May 31, 2019, and 2018, was $42.8 million and $49.3 million, respectively, net of capitalized interest of $2.5 million and $1.7 million, respectively. Interest expense for the nine months ended May 31, 2019, and 2018, was $123.0 million and $130.2 million, respectively, net of capitalized interest of $7.1 million and $4.8 million, respectively.