CREDIT AGREEMENT

6 Months Ended

Apr. 30, 2019

Debt Disclosure [Abstract]

CREDIT AGREEMENT

CREDIT AGREEMENT

The Company is a party to a revolving credit facility dated March 21, 2019, with a maximum available borrowing capacity of $1.0 billion. Under the credit facility, the Company may not exceed a maximum debt to total capitalization ratio of 50%. The Company has a one-time right, at any time during the term of the agreement, to increase the maximum debt to total capitalization ratio then in effect by five percentage points in connection with the construction of a new poultry complex for the four fiscal quarters beginning on the first day of the fiscal quarter during which the Company gives written notice of its intent to exercise this right. The Company has not exercised this right. The facility also sets a minimum net worth requirement that at April 30, 2019, was $970.4 million. The credit is unsecured and, unless extended, will expire on March 21, 2024. As of

April 30, 2019, the Company had borrowed $100.0 million, and had approximately $25.3 million outstanding in letters of credit, leaving $874.7 million of borrowing capacity available under the facility. As of May 29, 2019, the Company had borrowed $80.0 million under the facility, and had approximately $25.3 million outstanding in letters of credit, leaving $894.7 million of borrowing capacity available under the facility.