Debt

12 Months Ended

Dec. 31, 2022

Debt

Debt

Note 7 − Debt

Lines of Credit

The outstanding balances under uncommitted lines of credit were $326 million and $359 million as of December 31, 2022 and 2021, respectively. Of the outstanding balance as of December 31, 2022, $194 million was denominated in foreign currencies, with $174 million denominated in the South African rand. Of the outstanding balance as of December 31, 2021, $218 million was denominated in foreign currencies, with $177 million denominated in the South African rand. The uncommitted lines of credit are unsecured and do not require compensating balances with the exception of $3 million as of December 31, 2022.

As of December 31, 2022, Seaboard had a committed $250 million line of credit secured by certain short-term investments maturing March 31, 2023. In 2022, Seaboard amended this committed line of credit agreement to extend the maturity date and change the interest reference rate from LIBOR to SOFR (Secured Overnight Financing Rate). Draws bear interest based on SOFR plus a spread. There was $131 million and $157 million outstanding under this committed line of credit as of December 31, 2022 and December 31, 2021, respectively.

The weighted average interest rate for outstanding lines of credit was 7.03% and 2.71% as of December 31, 2022 and 2021, respectively.

Long-term Debt

The following table is a summary of long-term debt:

		December 31,
(Millions of dollars)		2022		2021
Term Loan due 2028	$	670	$	677
Foreign subsidiary obligations		2		1
Other long-term debt		38		39
Total debt at face value		710		717
Current maturities and unamortized discount and costs		(8)		(9)
Long-term debt, less current maturities and unamortized discount and costs	$	702	$	708

In 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 for a $700 million unsecured term loan (“Term Loan”). The Term Loan provides for quarterly payments of the principal balance to the revised amortization schedule set forth in the Credit Agreement, with the balance due on the maturity date of September 25, 2028. 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 6.01% and 1.73% as of December 31, 2022 and 2021, 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.

In conjunction with the purchase of certain equipment during 2021, $9 million of secured, other long-term debt was assumed. The loan agreement incurs a fixed interest rate of 5.60% and matures in August 2037. In December 2020, Seaboard received a $30 million note that incurs a fixed interest rate of 1.28% and matures in 2027.

Seaboard was in compliance with all restrictive debt covenants relating to these agreements as of December 31, 2022.

The aggregate minimum principal payments required on long-term debt as of December 31, 2022 were as follows: $7 million in 2023, $8 million in 2024, $8 million in 2025, $8 million in 2026, $38 million in 2027 and $641 million thereafter.