Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

Debt consists of the following (in thousands):

	September 30, 2023		December 31, 2022
Amended Credit Agreement:
Revolving Credit Facility ($118.5 million and $32.0 million denominated in € at September 30, 2023 and December 31, 2022, respectively)	$	399,518	$	135,028
Term A-1 facility	400,000		400,000
Less unamortized deferred loan costs	(590)		(722)
Carrying value Term A-1 facility	399,410		399,278
Term A-2 facility	484,375		493,750
Less unamortized deferred loan costs	(837)		(1,034)
Carrying value Term A-2 facility	483,538		492,716
Term A-3 facility	300,000		—
Less unamortized deferred loan costs	(898)		—
Carrying value Term A-3 facility	299,102		—
Term A-4 facility	493,750		—
Less unamortized deferred loan costs	(1,085)		—
Carrying value Term A-4 facility	492,665		—
Term Loan B	200,000		200,000
Less unamortized deferred loan costs	(818)		(1,302)
Carrying value Term Loan B	199,182		198,698
6% Senior Notes due 2030 with effective interest of 6.12%	1,000,000		1,000,000
Less unamortized deferred loan costs net of bond premium	(6,642)		(7,228)
Carrying value 6% Senior Notes due 2030	993,358		992,772
5.25% Senior Notes due 2027 with effective interest of 5.47%	500,000		500,000
Less unamortized deferred loan costs	(3,471)		(4,127)
Carrying value 5.25% Senior Notes due 2027	496,529		495,873
3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83%	544,973		549,814
Less unamortized deferred loan costs - Denominated in euro	(2,912)		(3,728)
Carrying value 3.625% Senior Notes due 2026	542,061		546,086
Other Notes and Obligations	106,625		124,364
	4,411,988		3,384,815
Less Current Maturities	73,862		69,846
	$	4,338,126	$	3,314,969

As of September 30, 2023, the Company had outstanding debt under the revolving credit facility denominated in euros of €112.0 million and outstanding debt under the Company's 3.625% Senior Notes due 2026 denominated in euros of €515.0 million. In addition, at September 30, 2023, the Company had finance lease obligations denominated in euros of approximately €7.5 million.

As of September 30, 2023, the Company had other notes and obligations of $106.6 million that consist of various overdraft facilities of approximately $30.6 million, Brazilian notes of approximately $43.1 million, a China working capital line of credit of approximately $1.9 million and other debt of approximately $31.0 million, including U.S. finance lease obligations of approximately $4.6 million.

On January 6, 2014, Darling, Darling International Canada Inc. (“Darling Canada”) and Darling International NL Holdings B.V. (“Darling NL”) entered into a Second Amended and Restated Credit Agreement (as subsequently amended, the “Amended Credit Agreement”), restating its then existing Amended and Restated Credit Agreement dated September 27, 2013, with the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents from time to time party thereto.

The interest rate applicable to any borrowings under the revolving credit facility equals the adjusted term secured overnight financing rate (SOFR) for U.S. dollar borrowings or the adjusted euro interbank rate (EURIBOR) for euro borrowings or the adjusted daily simple Sterling overnight index average (SONIA) for British pound borrowings or CDOR for Canadian dollar borrowings plus 1.375% per annum or base rate or the adjusted term SOFR for U.S. dollar borrowings or Canadian prime rate for Canadian dollar borrowings or the adjusted daily simple European short term rate (ESTR) for euro borrowings or the adjusted daily SONIA rate for British pound borrowings plus 0.375% per annum subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the term A-1 facility and term A-3 facility equals the adjusted term SOFR plus a minimum of 1.50% per annum subject to certain step-ups based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the term A-2 facility and term A-4 facility equals the adjusted term SOFR plus 1.375% per annum subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowings under the term loan B facility equals the base rate plus 1.00% or LIBOR plus 2.00%.

As of September 30, 2023, the Company had (i) $21.0 million outstanding under the revolving credit facility at base rate plus a margin of 0.375% per annum for a total of 8.875% per annum, (ii) $260.0 million outstanding under the revolver at SOFR plus a margin of 1.375% per annum for a total of 6.79108% per annum, (iii) $400.0 million outstanding under the term A-1 facility at SOFR plus a margin of 1.50% per annum for a total of 6.91608% per annum, (iv) $484.4 million outstanding under the term A-2 facility at SOFR plus a margin of 1.375% per annum for a total of 6.79108% per annum, (v) $300.0 million outstanding under the term A-3 facility at SOFR plus a margin 1.50% per annum for a total of 6.91608% per annum, (vi) $493.8 million outstanding under the term A-4 facility at SOFR plus a margin 1.375% per annum for a total of 6.79108% per annum, (vii) $200.0 million outstanding under the term B facility at LIBOR plus a margin of 2.00% per annum for a total of 7.44% per annum and (viii) €112.0 million outstanding under the revolving credit facility at EURIBOR plus a margin of 1.375% per annum for a total of 5.17646% per annum. As of September 30, 2023, the Company had revolving credit facility availability of $1,044.0 million, under the Amended Credit Agreement taking into account amounts borrowed, ancillary facilities of $52.6 million and letters of credit issued of $3.9 million. The Company also had foreign bank guarantees of approximately $11.5 million and U.S. bank guarantees of approximately $10.9 million that are not part of the Company's Amended Credit Agreement at September 30, 2023.

As of September 30, 2023, the Company believes it is in compliance with all of the financial covenants under the Amended Credit Agreement, as well as all of the other covenants contained in the Amended Credit Agreement, the 6% Senior Notes due 2030, the 5.25% Senior Notes due 2027 and the 3.625% Senior Notes due 2026.