LONG-TERM DEBT

12 Months Ended

Oct. 31, 2022

Long-term debt is summarized as follows:


(in millions)	October 31, 2022		October 31, 2021
2022 Credit Agreement - Term Loans	$	1,565.0	$	—
2019 Credit Agreement - Term Loans	—		1,247.3
Senior Notes due 2027	—		495.9
Accounts receivable credit facilities	311.4		391.1
2022 Credit Agreement - Revolving Credit Facility	41.9		—
2019 Credit Agreement - Revolving Credit Facility	—		50.5
Other debt	0.4		0.6
	1,918.7		2,185.4
Less current portion	71.1		120.3
Less deferred financing costs	8.3		10.3
Long-term debt, net	$	1,839.3	$	2,054.8

2022 Credit Agreement

On March 1, 2022, the Company and certain of its subsidiaries entered into a second amended and restated senior secured credit agreement (the “2022 Credit Agreement”) with a syndicate of financial institutions. The 2022 Credit Agreement amended, restated and replaced in its entirety the Company's previous credit agreement, referred to as the "2019 Credit Agreement".

The 2022 Credit Agreement provides for (a) an $800.0 million secured revolving credit facility, consisting of a $725.0 million multicurrency facility and a $75.0 million U.S. dollar facility, maturing on March 1, 2027, (b) a $1,100.0 million secured term loan A-1 facility with quarterly principal installments commencing on July 31, 2022 and continuing through January 31, 2027, with any outstanding principal balance of such term loan A-1 facility being due and payable on maturity on March 1, 2027, and (c) a $515.0 million secured term loan A-2 facility with quarterly principal installments commencing on July 31, 2022 and continuing through January 31, 2027, with any outstanding principal balance of such term loan A-2 being due and payable on maturity on March 1, 2027. The term loan A-2 facility reflects the combination of the outstanding balances of the secured term A-2 and A-3 loans under the 2019 Credit Agreement.

The Company used the borrowings under the 2022 Credit Agreement on March 1, 2022, to redeem the $500.0 million of 6.5% Senior Notes due March 1, 2027 (the "Senior Notes due 2027"), and to repay and refinance all of the outstanding borrowings under the 2019 Credit Agreement, and will use the borrowings thereunder to fund ongoing working capital and capital expenditure needs and for general corporate purposes, including acquisitions, and to pay related fees and expenses. Interest is based on Secured Overnight Financing Rate ("SOFR") plus a credit spread adjustment, Euro Interbank Offer Rate ("EURIBOR") or a base rate that resets periodically plus, in each case, a calculated margin amount that is based on the Company's leverage ratio. Subject to the terms of the 2022 Credit Agreement, the Company has an option to borrow additional funds under the 2022 Credit Agreement with the agreement of the lenders.

As of October 31, 2022, $1,606.9 million was outstanding under the 2022 Credit Agreement. The current portion was $71.1 million, and the long-term portion was $1,535.8 million. The weighted average interest rate for borrowings under the 2022 Credit Agreement was 2.39% for the year ended October 31, 2022. The actual interest rate for borrowings under the 2022 Credit Agreement was 4.98% as of October 31, 2022. The deferred financing costs associated with the term loan portion of the 2022 Credit Agreement totaled $8.3 million as of October 31, 2022 and are recorded as a reduction of long-term debt on the consolidated balance sheets. The deferred financing costs associated with the revolving portion of the 2022 Credit Agreement totaled $3.7 million as of October 31, 2022 and are recorded within other long-term assets on the consolidated balance sheets.

As a result of the refinancing, $0.7 million of unamortized deferred financing costs related to the 2019 Credit Agreement, and $2.8 million of newly incurred financing costs related to the 2022 Credit Agreement, were expensed as debt extinguishment charges in the consolidated statements of income.

Senior Notes due 2027

On March 1, 2022, the Company redeemed all of its outstanding Senior Notes due 2027, which were issued by the Company on February 11, 2019, for $500.0 million. The total redemption price for the Senior Notes due 2027 was $516.3 million, which was equal to the aggregate principal payment outstanding of $500.0 million plus a call premium of $16.3 million. The premium was recognized as a debt extinguishment charges on the consolidated statements of income. The payment of the redemption price was funded by borrowings under the 2022 Credit Agreement.

As a result of redeeming the Senior Notes due 2027, $1.8 million of unamortized deferred financing costs and $3.8 million of unamortized discount were expensed as debt extinguishment charges on the consolidated statements of income.

United States Trade Accounts Receivable Credit Facility

On September 24, 2019, certain U.S. subsidiaries of Greif, Inc. amended and restated the existing receivables financing facility (the “U.S. Receivables Facility”). Greif Receivables Funding LLC (“Greif Funding”), Greif Packaging LLC (“Greif Packaging”), for itself and as servicer, and certain other U.S. subsidiaries of the Company entered into a Third Amended and Restated Transfer and Administration Agreement, dated as of September 24, 2019 (the “Third Amended TAA”), with Bank of America, N.A., as the agent, managing agent, administrator and committed investor, and various investor groups, managing agents, and administrators, from time to time parties thereto. On May 17, 2022, the Third Amended TAA was amended with a new maturity date of May 17, 2023 and provides an accounts receivables facility of $300.0 million.

Greif Funding is a direct subsidiary of Greif Packaging and is included in the Company’s consolidated financial statements. However, because Greif Funding is a separate and distinct legal entity from the Company, the assets of Greif Funding are not

available to satisfy the liabilities and obligations of the Company, Greif Packaging or other subsidiaries of the Company, and the liabilities of Greif Funding are not the liabilities or obligations of the Company or its other subsidiaries.

The U.S. Receivables Facility is secured by certain trade accounts receivables related to the Global Industrial Packaging and the Paper Packaging & Services businesses of Greif Packaging and other subsidiaries of the Company in the United States and bears interest at a variable rate based on the London InterBank Offered Rate or an applicable base rate, plus a margin, or a commercial paper rate, all as provided in the Third Amended TAA. Interest is payable on a monthly basis and the principal balance is payable upon termination of the U.S. Receivables Facility. The $215.0 million outstanding balance under the U.S. Receivables Facility as of October 31, 2022 is reported as long-term debt in the consolidated balance sheets because the Company intends to refinance this obligation on a long-term basis and has the intent and ability to consummate a long-term refinancing.

International Trade Accounts Receivable Credit Facilities

On April 20, 2022, Cooperage Receivables Finance B.V. and Greif Services Belgium BV, an indirect wholly owned subsidiary of Greif, Inc., amended and restated the Nieuw Amsterdam Receivables Financing Agreement (the "European RFA") with affiliates of a major international bank. The amended and restated European RFA matures April 24, 2023. The European RFA provides an accounts receivable financing facility of up to €100.0 million ($99.6 million as of October 31, 2022) secured by certain European accounts receivable. The $96.4 million outstanding on the European RFA as of October 31, 2022 is reported as long-term debt on the consolidated balance sheets because the Company intends to refinance these obligations on a long-term basis and has the intent and ability to consummate a long-term refinancing.

Short-Term Borrowings

The Company had short-term borrowings of $5.7 million and $50.5 million as of October 31, 2022 and 2021, respectively. There are no financial covenants associated with this other debt.

As of October 31, 2022, annual scheduled payments and maturities, including the current portion of long-term debt, were $424.8 million in 2023, $80.8 million in 2024, $80.8 million in 2025, $80.8 million in 2026, $1,251.5 million in 2027 and zero thereafter.