PRICESMART INCPSMT
PRICESMART INC Debt Disclosure
DEBT
Short-term borrowings consist of unsecured lines of credit and short-term overdraft borrowings. The following table summarizes the balances of total facilities, facilities used and facilities available (in thousands):
| Total Amount of Facilities | Facilities Used | Facilities Available | Weighted average interest rate | ||||||||||||||||||||||||||
| Short-term Borrowings | Letters of Credit | ||||||||||||||||||||||||||||
August 31, 2025 - Committed | $ | 75,000 | $ | — | $ | — | $ | 75,000 | — | % | |||||||||||||||||||
August 31, 2025 - Uncommitted | 96,000 | 12,286 | — | 83,714 | 9.5 | % | |||||||||||||||||||||||
August 31, 2025 - Total | $ | 171,000 | $ | 12,286 | $ | — | $ | 158,714 | 9.5 | % | |||||||||||||||||||
August 31, 2024 - Committed | $ | 75,000 | $ | — | $ | 225 | $ | 74,775 | — | % | |||||||||||||||||||
August 31, 2024 - Uncommitted | 96,000 | 8,007 | — | 87,993 | 11.3 | % | |||||||||||||||||||||||
August 31, 2024 - Total | $ | 171,000 | $ | 8,007 | $ | 225 | $ | 162,768 | 11.0 | % | |||||||||||||||||||
As of August 31, 2025 and August 31, 2024, the Company was in compliance with all covenants or amended covenants for each of its short-term facility agreements. These facilities generally expire annually or bi-annually and are normally renewed. One of these facilities is a committed credit agreement with one bank for $75.0 million. In exchange for the bank’s commitment to fund any drawdowns the Company requests, the Company pays an annual commitment fee of 0.25%, payable quarterly, on any unused portion of this facility. Additionally, the Company has uncommitted facilities in most of the countries where it operates, with drawdown requests subject to approval by the individual banks each time a drawdown is requested.
The following table provides the changes in long-term debt for the twelve months ended August 31, 2025:
| (Amounts in thousands) | Current portion of long-term debt | Long-term debt (net of current portion) | Total | |||||||||||||||||
Balances as of August 31, 2023 | $ | 20,193 | $ | 119,487 | $ | 139,680 | (1) | |||||||||||||
| Proceeds from long-term debt received during the period: | ||||||||||||||||||||
| Panama subsidiary | — | 16,500 | 16,500 | |||||||||||||||||
| Total proceeds from long-term debt received during the period | — | 16,500 | 16,500 | |||||||||||||||||
| Repayments of long-term debt: | (3,707) | (22,613) | (26,320) | |||||||||||||||||
| Reclassifications of long-term debt due in the next 12 months | 19,374 | (19,374) | — | |||||||||||||||||
Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar(2) | 57 | 443 | 500 | |||||||||||||||||
Balances as of August 31, 2024 | 35,917 | 94,443 | 130,360 | (3) | ||||||||||||||||
| Proceeds from long-term debt received during the period: | ||||||||||||||||||||
| Trinidad subsidiary | 19,311 | 51,119 | 70,430 | |||||||||||||||||
| Guatemala subsidiary | 458 | 9,542 | 10,000 | |||||||||||||||||
| United States | — | 12,500 | 12,500 | |||||||||||||||||
| Total proceeds from long-term debt received during the period | 19,769 | 73,161 | 92,930 | |||||||||||||||||
| Repayments of long-term debt: | (23,303) | (14,069) | (37,372) | |||||||||||||||||
| Reclassifications of long-term debt due in the next 12 months | 6,076 | (6,076) | — | |||||||||||||||||
Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar(2) | 216 | 463 | 679 | |||||||||||||||||
Balances as of August 31, 2025 | $ | 38,675 | $ | 147,922 | $ | 186,597 | (4) | |||||||||||||
(1)The carrying amount of non-cash assets assigned as collateral for these loans was $156.2 million. The carrying amount of cash assets assigned as collateral for these loans was $3.5 million.
(2)These foreign currency translation adjustments are recorded within other comprehensive income (loss).
(3)The carrying amount of non-cash assets assigned as collateral for these loans was $155.1 million. The carrying amount of cash assets assigned as collateral for these loans was $1.7 million.
(4)The carrying amount of non-cash assets assigned as collateral for these loans was $185.6 million. The carrying amount of cash assets assigned as collateral for these loans was $26.5 million.
In June 2025, the Company obtained a ten-year term loan for $12.5 million to fund the purchase of its new headquarters offices located in San Diego, California. The loan has a balloon payment due at maturity. The Company entered into an interest rate swap agreement to secure a 5.72% fixed interest rate on this loan.
In the fourth quarter of fiscal year 2025, the Company entered into the following financing transactions to provide our Trinidad subsidiary with additional U.S. dollar liquidity needed to meet its operational needs and help reduce the shortfall in U.S. dollar sourcing due to continued illiquid foreign exchange conditions in that market:
•The Company's Trinidad subsidiary entered into a privately placed bond agreement to issue bonds denominated in Jamaican dollars and indexed to U.S. dollars for the equivalent of U.S. $29.5 million, with a coupon rate of 7.25% and repayable over a four-year period;
•The Company's Trinidad subsidiary entered into a four-year cash-secured syndicated loan agreement for the equivalent of U.S. $20.5 million, of which $15.0 million is U.S. dollar denominated and $5.5 million is denominated in Jamaican dollars and indexed to U.S. dollars, at a 7.25% interest rate; and
•The Company's Trinidad subsidiary entered into a three-year term loan agreement denominated in U.S. dollars for U.S. $15.0 million. This U.S. $15.0 million loan is indexed to Trinidad dollars and will be repaid in Trinidad dollars, at an 11.50% interest rate.
Also, in the fourth quarter of fiscal year 2025, the Company entered into a loan agreement for $10.0 million to partially fund the construction of the new Quetzaltenango warehouse club. The loan has a term of 15 years. The loan is denominated in Guatemalan quetzales at a 7.60% interest rate.
The following table provides a summary of the third party long-term loans entered into by the Company:
| August 31, 2025 | August 31, 2024 | ||||||||||
| Loans entered into by the Company's subsidiaries for which the subsidiary has entered into a cross-currency interest rate swap with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants | $ | — | $ | 19,770 | |||||||
Loans entered into by the Company or its subsidiaries for which the Company or its subsidiary has entered into an interest rate swap with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants | 56,355 | 28,794 | |||||||||
Unhedged loans entered into by the Company's subsidiaries with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants (1) | 130,242 | 81,796 | |||||||||
| Total long-term debt | 186,597 | 130,360 | |||||||||
| Less: current portion | 38,675 | 35,917 | |||||||||
| Long-term debt, net of current portion | $ | 147,922 | 94,443 | ||||||||
(1)Refer to Part II. "Item 7A. Quantitative and Qualitative Disclosures about Market Risk" for more information about the composition of fixed-interest-rate and variable-interest-rate loans.
As of August 31, 2025 and August 31, 2024, the Company had approximately $78.1 million and $76.6 million, respectively, of long-term loans in several foreign subsidiaries which require these entities to comply with certain annual or quarterly financial covenants, which include debt service and leverage ratios. The Company was in compliance with all covenants or amended covenants for both periods. The net increase in long-term debt during the twelve months ended August 31, 2025 is primarily attributable to loans entered into by the Company’s Trinidad and Guatemala subsidiaries, as well as a loan entered by the US corporate office, and partially offset by payments on its long-term debt.
Annual maturities of long-term debt are as follows (in thousands):
| Twelve Months Ended August 31, | Amount | |||||||
| 2026 | $ | 38,675 | ||||||
| 2027 | 53,418 | |||||||
| 2028 | 32,437 | |||||||
| 2029 | 17,934 | |||||||
| 2030 | 3,729 | |||||||
| Thereafter | 40,404 | |||||||
| Total | $ | 186,597 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 30, 2025 | Showing above |
| 2024 | Oct 30, 2024 | |
| 2023 | Oct 30, 2023 | |
| 2022 | Oct 31, 2022 | |
| 2021 | Oct 21, 2021 | |
| 2020 | Oct 30, 2020 | |
| 2019 | Oct 29, 2019 | |
| 2018 | Oct 25, 2018 | |
| 2017 | Oct 26, 2017 | |
| 2016 | Oct 27, 2016 | |
| 2015 | Oct 29, 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.