Debt

12 Months Ended

Dec. 31, 2020

Debt

Debt

Note 8 – Debt

The outstanding balances under uncommitted lines of credit was $222 million and $246 million as of December 31, 2020 and 2019, respectively. Of the $222 million outstanding as of December 31, 2020, $142 million was denominated in foreign currencies, with $106 million denominated in the South African rand, $25 million denominated in the Canadian dollar, $9 million denominated in the Zambian kwacha and the remaining in various other currencies. The weighted average interest rate for outstanding uncommitted lines of credit was 3.89% and 5.79% as of December 31, 2020 and 2019, respectively. The uncommitted lines of credit are unsecured and do not require compensating balances.

Seaboard has two committed revolving credit agreements, which provide for a $250 million unsecured line of credit with a $100 million accordion option maturing May 20, 2021, and a $100 million line of credit secured by certain short-term investments maturing September 30, 2021. Draws bear interest based on LIBOR plus a spread. Seaboard incurs unused commitment fees of 0.15% to 0.20% per annum. There were no outstanding balances under committed lines of credit as of December 31, 2020 and 2019.

Long-term debt includes borrowings under term loans and other contractual obligations for payment, including notes payable. The following table is a summary of long-term debt:

		December 31,
(Millions of dollars)		2020		2019
Term Loans due 2027-2028	$	714	$	691
Foreign subsidiary obligations		49		102
Total debt at face value		763		793
Current maturities and unamortized discount and costs		(56)		(63)
Long-term debt, less current maturities and unamortized discount and costs	$	707	$	730

In December 2020, Seaboard received a $30 million term loan that incurs a 1% interest rate and matures in 2027.

On September 25, 2018, Seaboard Foods LLC entered into an Amended and Restated Term Loan Credit Agreement (“Credit Agreement”) with CoBank, ACB, Farm Credit Services of America, PCA, and the lenders party thereto. This Credit Agreement replaced Seaboard Foods LLC’s $500 million unsecured term loan with a $700 million unsecured term loan (“Term Loan”) and extended the maturity from December 4, 2022 to September 25, 2028. Seaboard Foods LLC received proceeds of $220 million, net of certain costs. The Term Loan provides for quarterly payments of the principal balance pursuant to the revised amortization schedule set forth in the Credit Agreement, with the balance due on the maturity date. The Term Loan bears interest at fluctuating rates based on various margins over a Base Rate, LIBOR or a Quoted Rate, at the option of the borrower. The interest rate was 1.77% and 3.42% as of December 31, 2020 and 2019, respectively. The Credit Agreement contains customary covenants for credit facilities of this type, including restrictions on the incurrence of indebtedness over a certain threshold, ability to make certain acquisitions, investments and asset dispositions and aggregate dividend payments.

Foreign subsidiary obligations as of December 31, 2020, include a $46 million euro-denominated note payable due to the sellers related to a 2018 acquisition. This note payable was repaid in January 2021. The weighted average interest rate of all foreign subsidiary debt was 3.51% and 3.50% as of December 31, 2020 and 2019, respectively.

Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of December 31, 2020.

The aggregate minimum principal payments required on long-term debt as of December 31, 2020 were as follows: $55 million in 2021, $8 million in 2022, $7 million in 2023, $7 million in 2024, $7 million in 2025 and $679 million thereafter.