XML 51 R25.htm IDEA: XBRL DOCUMENT v3.24.0.1
Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
Debt maturing within one year:
Debt maturing within one year consists of the following:
December 31,
(in Millions)20232022
Short-term foreign debt (1)
$98.0 $81.8 
Commercial paper (2)
739.5 370.5 
Total short-term debt$837.5 $452.3 
Current portion of long-term debt96.5 88.5 
Total short-term debt and current portion of long-term debt (3)
$934.0 $540.8 
____________________
(1)At December 31, 2023, the average effective interest rate on the borrowings was 14.2 percent.
(2)At December 31, 2023, the average effective interest rate on the borrowings was 6.11 percent.
(3)Based on cash generated from operations, our existing liquidity facilities, which includes the revolving credit agreement with the option to increase capacity up to $2.75 billion, and our continued access to debt capital markets, we have adequate liquidity to meet any of the company's debt obligations in the near term.
Long-term debt:
Long-term debt consists of the following:
(in Millions)December 31, 2023December 31,
Interest Rate
Percentage
Maturity
Date
20232022
Pollution control and industrial revenue bonds (less unamortized discounts of $0.1 and $0.1, respectively)
6.45%
 2032
$49.9 $49.9 
Senior notes (less unamortized discounts of $1.8 and $0.6, respectively)
3.2% - 6.4%
2026 - 2053
2,998.2 1,899.4 
2021 Term Loan Facility—%—— 800.0 
Revolving Credit Facility (1)
8.0%2027— — 
Foreign debt
14.6% - 17.4%
2024
96.5 88.5 
Debt issuance cost(24.5)(16.1)
Total long-term debt$3,120.1 $2,821.7 
Less: debt maturing within one year96.5 88.5 
Total long-term debt, less current portion$3,023.6 $2,733.2 
____________________ 
(1)Letters of credit outstanding under the Revolving Credit Facility totaled $251.5 million and available funds under this facility were $1,009.0 million at December 31, 2023.

Maturities of long-term debt
Maturities of long-term debt outstanding, excluding discounts, at December 31, 2023, are $96.5 million in 2024, $0.0 million in 2025, $1,000.0 million in 2026, $0.0 million in 2027, $0.0 million in 2028 and $2,050.0 million thereafter.
Senior Notes
On May 18, 2023, we issued $500 million aggregate principal amount of 5.150% Senior Notes due 2026, $500 million aggregate principal amount of 5.650% Senior Notes due 2033 and $500 million aggregate principal amount of 6.375% Senior Notes due 2053 (together the "Senior Notes"). The net proceeds from the offering were used to pay down both outstanding commercial paper and the 2021 Term Loan Facility as well as for general corporate purposes.
Covenants
Among other restrictions, our Revolving Credit Facility contains financial covenants applicable to FMC and its consolidated subsidiaries related to leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). In June 2023, the Company entered into Amendment No. 1 to that certain Fifth Amended and Restated Credit Agreement, dated as of June 17, 2022. In November 2023, the Company further amended its credit agreement to provide additional financial flexibility given current market challenges, which are expected to persist during the covenant relief period. As defined in the amendment, the maximum leverage ratio is increased to 6.50 through the period ending June 30, 2024. The maximum leverage ratio will incrementally step down during the covenant relief period ending at 3.75 for the quarter ended September 30, 2025. The amendment also lowers the minimum interest coverage ratio to 2.50 beginning with the quarter ended December 31, 2023 and then incrementally increases during the covenant relief period. The minimum interest coverage ratio will return to the current level of 3.50 beginning with the quarter ended September 30, 2025. Additionally, the Company shall not repurchase shares during the covenant relief period, with the exception of share repurchases under our equity compensation plans.
Our actual leverage for the four consecutive quarters ended December 31, 2023 was 4.17 which is below the maximum leverage of 6.50. Our actual interest coverage for the four consecutive quarters ended December 31, 2023 was 4.13 which is above the minimum interest coverage of 2.50. We were in compliance with all covenants at December 31, 2023.