FASTENAL COFAST

FASTENAL CO Debt Disclosure

10-KFiled Feb 5, 20262 min read
Note 9. Debt Commitments
Credit Facility, Notes Payable, and Commitments
Debt obligations and letters of credit outstanding at year end consisted of the following:
Average
Interest Rate at
December 31,
2025
Debt Outstanding
Maturity
Date		20252024
Unsecured revolving credit facility4.73%September 28, 2027$— — 
Senior unsecured promissory notes payable, Series D2.66%May 15, 2025— 75.0 
Senior unsecured promissory notes payable, Series E2.72%May 15, 202750.0 50.0 
Senior unsecured promissory notes payable, Series G2.13%June 24, 202625.0 25.0 
Senior unsecured promissory notes payable, Series H2.50%June 24, 203050.0 50.0 
Total125.0 200.0 
   Less: Current portion of debt(25.0)(75.0)
Long-term debt$100.0 125.0 
Outstanding letters of credit under unsecured revolving credit facility - contingent obligation$29.7 31.2 
Unsecured Revolving Credit Facility
We have an $835.0 committed unsecured revolving Credit Facility with an uncommitted accordion option to increase the aggregate revolving commitment by an additional $365.0 for a total of $1,200.0. The Credit Facility includes a committed letter of credit subfacility of $55.0. Any borrowings outstanding under the Credit Facility for which we have the ability and intent to pay using cash within the next 12 months will be classified as a current liability. The Credit Facility contains certain financial and other covenants, and our right to borrow under the Credit Facility is conditioned upon, among other things, our compliance with these covenants. We are currently in compliance with these covenants.
Borrowings under the Credit Facility generally bear interest at a rate per annum equal to Daily Simple SOFR plus a 0.10% spread adjustment plus 0.95%. We pay a commitment fee for the unused portion of the Credit Facility. This fee is either 0.10% or 0.125% per annum based on our use of the Credit Facility.
Senior Unsecured Promissory Notes Payable
We have issued senior unsecured promissory notes under our master note agreement (the Master Note Agreement) in the aggregate principal amount of $125.0 as of December 31, 2025. Our aggregate borrowing capacity under the Master Note Agreement is $900.0; however, none of the institutional investors party to that agreement are committed to purchase notes thereunder. There is no amortization of these notes prior to their maturity date and interest is payable quarterly. The notes currently issued under our Master Note Agreement, including the maturity date and fixed interest rate per annum of each series of note, are contained in the table above. The Master Note Agreement contains certain financial and other covenants and we are currently in compliance with these covenants.
Principal payments required on our outstanding indebtedness, based on the maturity dates defined within our long-term debt arrangements, for the succeeding five years, are displayed in the table below, as of December 31, 2025:
Principal Payments
2026$25.0 
202750.0 
2028— 
2029— 
203050.0 
2031 and thereafter— 
     Total$125.0 

Historical Timeline

Fiscal YearFiled
2025Feb 5, 2026Showing above
2024Feb 6, 2025
2023Feb 6, 2024
2022Feb 7, 2023
2021Feb 7, 2022
2020Feb 8, 2021
2019Feb 6, 2020

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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