NORDSON CORPNDSN
NORDSON CORP Debt Disclosure
Long-term debt
A summary of long-term debt is as follows:
| 2024 | 2023 | ||||||||||
| Notes Payable | $ | 18,285 | $ | 5,019 | |||||||
| Revolving credit agreement, due 2028 | 240,000 | 248,000 | |||||||||
| Term loan, due 2026 | 280,000 | 300,000 | |||||||||
| Senior notes, due 2025 | 8,500 | 32,000 | |||||||||
| Senior notes, due 2025-2027 | 37,143 | 54,286 | |||||||||
| Senior notes, due 2025-2030 | 190,000 | 260,000 | |||||||||
| 5.600% Notes due 2028 | 350,000 | 350,000 | |||||||||
| 5.800% Notes due 2033 | 500,000 | 500,000 | |||||||||
| 4.500% Notes due 2029 | 600,000 | — | |||||||||
| 2,223,928 | 1,749,305 | ||||||||||
| Less current maturities | 103,928 | 115,662 | |||||||||
| Less unamortized debt issuance costs | 16,359 | 10,773 | |||||||||
| Less bond discounts | 2,444 | 1,476 | |||||||||
| Long-term maturities | $ | 2,101,197 | $ | 1,621,394 | |||||||
Revolving credit agreement — In April 2019, we entered into a $850,000 unsecured multi-currency credit facility with a group of banks, which amended, restated and extended our then existing syndicated revolving credit agreement. This facility had a five-year term expiring in April 2024 and included a $75,000 sub-facility for swing-line loans. On April 17, 2023, we entered into an amendment to, among other things, replace London Interbank Offered Rate with the Secured Overnight Financing Rate (“SOFR”), the Euro Interbank Offered Rate, the Sterling Overnight Index Average and the Tokyo Interbank Offered Rate for U.S. Dollar, Euro, British Pound Sterling and Japanese Yen borrowings, respectively. On June 6, 2023, this credit agreement was terminated and replaced by the New Credit Agreement (as defined below).
In June 2023, we entered into a $1,150,000 unsecured multi-currency credit facility with a group of banks, which provides for a term loan facility in the aggregate principal amount of $300,000 (the "Term Loan Facility"), maturing in June 2026, and a multicurrency revolving credit facility in the aggregate principal amount of $850,000 (the "Revolving Facility"), maturing in June 2028 (the "New Credit Agreement"). In June 2024, the Revolving Facility was amended to increase the aggregate principal amount to $922,500. The Company borrowed and has outstanding $280,000 on the Term Loan Facility and $240,000 on the Revolving Facility as of October 31, 2024. The Revolving Facility permits borrowing in U.S. Dollars, Euros, Sterling, Swiss Francs, Singapore Dollars, Yen, and each other currency approved by a Revolving Facility lender. The New Credit Agreement provides that the applicable margin for (i) Risk-Free Rate ("RFR"), as defined in the New Credit Agreement, and Eurodollar Loans will range from 0.85% to 1.20% and (ii) Base Rate Loans will range from 0.00% to 0.20%, in each case, based on the Company’s Leverage Ratio (as defined in the Credit Agreement and calculated on a consolidated net debt basis). Borrowings under the New Credit Agreement bear interest at (i) either a base rate or a SOFR rate, with respect to borrowings in U.S. dollars, (ii) a eurocurrency rate, with respect to borrowings in Euros and Yen, or (iii) Daily Simple RFR, with respect to borrowings in Sterling, Swiss Francs or Singapore Dollars, plus, in each case, an applicable margin (and, solely in the case of Singapore Dollars, a spread adjustment). The applicable margin is based on the Company’s Leverage Ratio. The weighted-average interest rate at October 31, 2024 was 5.66%.
Senior notes, due 2025 — These unsecured fixed-rate notes entered into in 2012 with a group of insurance companies have a remaining weighted-average life of 0.73 years. The weighted-average interest rate at October 31, 2024 was 3.07 percent.
Senior notes, due 2025-2027 — These unsecured fixed-rate notes entered into in 2015 with a group of insurance companies have a remaining weighted-average life of 1.55 years. The weighted-average interest rate at October 31, 2024 was 3.13 percent.
Senior notes, due 2025-2030 — These unsecured fixed-rate notes entered in 2018 with a group of insurance companies have a remaining weighted-average life of 2.70 years. The weighted-average interest rate at October 31, 2024 was 4.03 percent.
5.600% Notes due 2028 and 5.800% Notes due 2033 — In September 2023, we completed an underwritten public offering of $350,000 aggregate principal amount of 5.600% Notes due 2028 and $500,000 aggregate principal amount of 5.800% Notes due 2033.
4.500% Notes due 2029 - In September 2024, we completed an underwritten public offering of $600,000 aggregate principal amount of 4.500% Notes due 2029 (the "2029 Notes").
We were in compliance with all covenants at October 31, 2024 and the amount we could borrow would not have been limited by any debt covenants.
Annual maturities — The annual maturities of long-term debt for the five years subsequent to October 31, 2024, are as follows: $103,928 in 2025; $330,000 in 2026; $10,000 in 2027; $630,000 in 2028 and $620,000 in 2029.
Bank lines of credit are summarized as follows:
| 2024 | 2023 | ||||||||||
| Maximum borrowings available under bank lines of credit (all foreign banks) | $ | 123,983 | $ | 114,464 | |||||||
| Outstanding borrowings / notes payable (all foreign bank debt) | (18,285) | (5,019) | |||||||||
| Unused bank lines of credit | $ | 105,698 | $ | 109,445 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Dec 18, 2024 | Showing above |
| 2023 | Dec 20, 2023 | |
| 2022 | Dec 19, 2022 | |
| 2021 | Dec 17, 2021 | |
| 2020 | Dec 18, 2020 | |
| 2019 | Dec 13, 2019 | |
| 2018 | Dec 14, 2018 | |
| 2017 | Dec 15, 2017 | |
| 2016 | Dec 15, 2016 | |
| 2015 | Dec 15, 2015 | |
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.