Long-Term debt obligations

12 Months Ended

Oct. 31, 2020

Long-term debt obligations consisted of the following:


	October 31,
	2020		2019
	(In thousands)
Revolving credit facility (weighted average interest rates of 1.4% at October 31, 2020 and 3.3% at October 31, 2019)	$	25,000	$	55,000
Less current maturities of long-term debt	—		—
Total long-term debt	$	25,000	$	55,000

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 October 31, 2020, was $1.0 billion. The credit is unsecured and, unless extended, will expire on March 21, 2024. As of October 31, 2020, and December 16, 2020, the Company had borrowed $25.0 million, and had approximately $25.2 million outstanding in letters of credit, leaving $949.8 million of borrowing capacity available under the facility.

The Company has the option to borrow funds under the revolving line of credit based on the Prime interest rate or the Libor interest rate plus a spread ranging from 0.25% to 1.50%. The spread on Libor borrowings and the commitment fee for the unused balance of the revolving credit agreement are determined based upon the Company’s leverage ratio as follows:


Level	Leverage Ratio	Spread		Commitment Fee
1	< 25%	0.25	%	0.20	%
2	≥ 25% and < 35%	0.50	%	0.25	%
3	≥ 35% and < 45%	1.00	%	0.30	%
4	≥ 45%	1.50	%	0.35	%

The aggregate annual maturities of long-term debt at October 31, 2020 are as follows (in thousands):


Fiscal Year	Amount
2024	$	25,000
	$	25,000