Debt

12 Months Ended

Dec. 31, 2023

Debt

Debt

Note 7 − Debt

Lines of Credit

The outstanding balances under uncommitted lines of credit were $150 million and $326 million as of December 31, 2023 and 2022, respectively. Of the outstanding balance as of December 31, 2023, $70 million was denominated in foreign currencies, with $57 million denominated in the South African rand. 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. The uncommitted lines of credit are unsecured and do not require compensating balances with the exception of $5 million as of December 31, 2023.

Seaboard has a committed $450 million line of credit secured by certain short-term investments that matures March 28, 2025. Draws bear interest at the Secured Overnight Financing Rate (“SOFR”) plus a spread. The outstanding balances under this committed line of credit were $105 million and $131 million as of December 31, 2023 and December 31, 2022, respectively. During the first quarter of 2023, Seaboard amended and restated this committed line of credit agreement to increase the borrowing capacity and extend the maturity date.

The weighted-average interest rate for outstanding lines of credit was 7.34% and 7.03% as of December 31, 2023 and 2022, respectively.

Long-term Debt

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

		December 31,
(Millions of dollars)		2023		2022
Term Loan due 2033	$	973	$	—
Term Loan due 2028		—		670
Foreign subsidiary obligations		1		2
Other long-term debt		38		38
Total debt at face value		1,012		710
Current maturities and unamortized costs		(15)		(8)
Long-term debt, less current maturities and unamortized costs	$	997	$	702

On November 10, 2023, Seaboard Foods LLC (“Seaboard Foods”), a wholly owned subsidiary of Seaboard, entered into a Second Amended and Restated Term Loan Credit Agreement (“Amended Credit Agreement”) with CoBank, ACB, Farm Credit Services of America, PCA, and the lenders party thereto. The Amended Credit Agreement replaced the $700 million unsecured term loan (“Term Loan due 2028”) with a $975 million unsecured term loan (“Term Loan due 2033”) and extended the maturity from September 25, 2028 to November 10, 2033. Upon closing, Seaboard received proceeds of $307 million, net of certain costs, of which some were capitalized and are amortized to interest expense using the effective interest method over the term of the agreement. The Term Loan due 2033 provides for quarterly amortization of the principal balance of $2.5 million with the balance due on the maturity date. The Term Loan due 2033 bears interest at one of four options selected by the borrower, including fluctuating rates based on various margins over a Base Rate, Term SOFR, Daily Simple SOFR or a fixed Quoted Rate. The interest rate was 7.08% and 6.01% as of December 31, 2023 and 2022, respectively.

The Amended Credit Agreement contains customary covenants for credit facilities of this type, including restrictions on the ability to grant liens on assets, incur indebtedness, make certain acquisitions, investments and asset dispositions and dividend payments in excess of specified amounts.

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. Also, Seaboard has a note payable of $30 million 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, 2023.

The aggregate minimum principal payments required on long-term debt as of December 31, 2023 were as follows: $11 million in 2024, $11 million in 2025, $11 million in 2026, $41 million in 2027, $11 million in 2028 and $927 million thereafter.