FMC CORPFMC
FMC CORP Debt Disclosure
Debt
Debt maturing within one year:
Debt maturing within one year consists of the following:
| December 31, | |||||||||||
| (in Millions) | 2025 | 2024 | |||||||||
Short-term foreign debt (1) | $ | 76.5 | $ | 135.7 | |||||||
Revolving Credit Facility (2) | 643.0 | — | |||||||||
| Commercial paper | — | 125.6 | |||||||||
| Total short-term debt | $ | 719.5 | $ | 261.3 | |||||||
| Current portion of long-term debt | 585.6 | 76.1 | |||||||||
| Total short-term debt and current portion of long-term debt | $ | 1,305.1 | $ | 337.4 | |||||||
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(1)At December 31, 2025, the average effective interest rate on the borrowings was 11.1 percent.
(2)At December 31, 2025, the average effective interest rate on the borrowings was 5.8 percent.
Revolving Credit Facility
The Fifth Amended and Restated Credit Agreement, dated as of June 17, 2022 (the "Revolving Credit Facility") allows the Company to borrow up to $2 billion, with the option to increase the capacity of the facility up to $2.75 billion. As of December 31, 2025, borrowings under the Revolving Credit Facility were $643.0 million. In accordance with U.S. GAAP, we have classified the borrowings as short-term debt. The Company intends to refinance any draw under the line of credit with successive short-term borrowings, as needed, through the maturity date in 2028.
Letters of credit outstanding under the Revolving Credit Facility totaled $209.8 million and available funds under this facility were $1,147.2 million at December 31, 2025.
Long-term debt:
Long-term debt consists of the following:
| (in Millions) | December 31, 2025 | December 31, | |||||||||||||||||||||
Interest Rate Percentage | Maturity Date | 2025 | 2024 | ||||||||||||||||||||
Pollution control and industrial revenue bonds (less unamortized discounts of $0.1 and $0.1, respectively) | 6.45% | 2032 | $ | 49.9 | $ | 49.9 | |||||||||||||||||
Senior notes (less unamortized discounts of $1.4 and $1.6, respectively) | 3.2% - 6.4% | 2026 - 2053 | 2,498.6 | 2,998.4 | |||||||||||||||||||
| Subordinated Notes | 8.45% | 2055 | 750.0 | — | |||||||||||||||||||
| Foreign debt | 12.3% - 17.1% | 2026 | 86.0 | 76.1 | |||||||||||||||||||
| Debt issuance cost | (29.1) | (20.4) | |||||||||||||||||||||
| Total long-term debt | $ | 3,355.4 | $ | 3,104.0 | |||||||||||||||||||
| Less: debt maturing within one year | 585.6 | 76.1 | |||||||||||||||||||||
| Total long-term debt, less current portion | $ | 2,769.8 | $ | 3,027.9 | |||||||||||||||||||
Maturities of long-term debt
Maturities of long-term debt outstanding, excluding discounts, at December 31, 2025, are $586.0 million in 2026, zero in 2027, zero in 2028, $500.0 million in 2029, zero in 2030 and $2,300.0 million thereafter.
Subordinated Notes
On May 27, 2025, the Company completed the sale of $750 million aggregate principal amount of 8.45% Subordinated Notes due November 1, 2055. The Company used the net proceeds from this offering to redeem $500 million of the senior notes due May 18, 2026 and for general corporate purposes. The Company paid a make-whole premium of $3.3 million in connection with the early redemption of the senior notes, which is recorded within "Non-operating pension, postretirement and other charges (income)" on the consolidated statement of income (loss).
Covenants
Among other restrictions, the Revolving Credit Facility contains financial covenants applicable to FMC and its consolidated subsidiaries related to leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). In February 2025 and December 2025, the Company amended its credit agreement to provide additional financial flexibility given current market challenges. As defined in Amendment No 5. to our Revolving Credit Facility, the maximum leverage ratio is increased to 6.00 through the period ending September 30, 2026 and will incrementally step up or down during the covenant relief period ending at 3.75 for the quarter ended December 31, 2028. The amendment also lowers the minimum interest coverage ratio to 2.00 through the period ending June 30, 2027. The minimum interest coverage ratio will step up to 2.50 beginning with the quarter ended September 30, 2027. Increases to the Company’s regular quarterly dividend are limited and other restrictions are effective as defined in the amended agreement entered into in December 2025. Financing fees associated with these amendments were not material, have been deferred and will be recognized as interest expense over the life of the agreement.
Our actual leverage for the four consecutive quarters ended December 31, 2025 was 4.58, which is below the maximum leverage of 6.00. Our actual interest coverage for the four consecutive quarters ended December 31, 2025 was 3.48, which is above the minimum interest coverage of 2.00. We were in compliance with all covenants at December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
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.