SENSIENT TECHNOLOGIES CORPSXT
SENSIENT TECHNOLOGIES CORP Debt Disclosure
6. Debt
Long-term Debt
Long-term debt consisted of the following obligations at December 31:
|
(In thousands)
|
2025
|
2024
|
||||||
|
4.19% senior
notes due
|
$ |
-
|
$ |
25,000
|
||||
| 6.08% senior notes due | 35,000 | 35,000 | ||||||
| 6.14% senior notes due | 35,000 | 35,000 | ||||||
| 4.94% senior notes due | 75,000 | 75,000 | ||||||
| 4.83% senior notes due | 60,000 | - | ||||||
| 6.34% senior notes due | 35,000 | 35,000 | ||||||
|
1.71%
Euro-denominated senior notes due
|
46,981
|
41,416
|
||||||
| 4.15% Euro-denominated senior notes due | 46,981 | 41,416 | ||||||
| 4.62% Euro-denominated senior notes due | 46,981 | 41,416 | ||||||
|
2.76%
British Pound-denominated notes due
|
-
|
31,289
|
||||||
|
Euro-denominated term loan
|
88,090
|
77,657
|
||||||
|
Revolving Credit Facilities
|
240,488
|
175,125
|
||||||
|
Various other notes
|
369
|
536
|
||||||
|
Total debt
|
709,890
|
613,855
|
||||||
|
Less debt fees
|
(429
|
)
|
(133
|
)
|
||||
|
Less current portion
|
(229
|
)
|
(199
|
)
|
||||
|
Total long-term debt
|
$
|
709,232
|
$
|
613,523
|
||||
In June 2025, the Company entered into a Fourth Amended and Restated Credit Agreement (Credit Agreement). The Credit Agreement provides for a $400
million senior unsecured revolving credit facility, with up to $20 million of the facility being available as a sub-facility for
standby and commercial letters of credit and sub-limits of up to $50 million on swing line loans. The Credit Agreement amended and
restated the Company’s Third Amended and Restated Credit Agreement to, among other things, (i) increase the aggregate revolving commitment amount from $350
million to $400 million, (ii) increase the incremental revolving commitment from $100 million to $150 million, (iii) extend the maturity of the
Company’s revolving credit facility from to , and (iv) modify certain other provisions. Funds are available in U.S. dollars, Euros, English pounds, and other major currencies. Proceeds from the facility have
been and will be used to refinance existing indebtedness of the Company, for
working capital, and other general corporate purpose needs, including capital expenditures, of the Company.
In June 2025, the Company also amended its term loan
agreement (Term Loan) with PNC Bank, N.A (PNC Bank) to extend the maturity date from to . The term loan acts as a partial hedge of the Company’s net asset position in Euros. See Note 7, Derivative Instruments and Hedging Activity, for additional information. Borrowings on the Term Loan bear interest at a variable rate,
based upon the Eurocurrency Rate and including a margin percentage of 1.125%. The average interest rate on the Term Loan was 3.30%
for the year ended December 31, 2025.
In June 2025, the Company also amended its accounts receivable securitization program with Wells Fargo Bank N.A. (Wells Fargo) to, among other things, (i) increase the facility limit from $85 million to $105 million and (ii)
extend the termination date from to . Under the amended program, Wells Fargo has extended a secured loan (Secured Loan) of up to $105 million to the Company secured by Wells Fargo’s undivided interests in certain of the Company’s trade accounts receivables. The interest rate on the Secured Loan is the Daily One Month Term SOFR as administered by CME Group Benchmark Administration Limited plus an Applicable Margin of 77.5 basis points. The Company has the intent and ability either to refinance the Secured Loan with available funds from the Company’s existing long-term revolving credit
facility or to extend its accounts receivable program with Wells Fargo when it matures. Accordingly, the Secured Loan has been classified as long-term debt on the Company’s Consolidated Balance Sheet and is included with the Revolving Credit
Facilities above. As of December 31, 2025, the amount was fully drawn.
In November 2025, the Company entered into an Amended and Restated Consolidated Note Purchase and Master Note Agreement (Master Note Agreement) with the purchasers named therein. The Master Note Agreement consolidates all existing senior note purchase agreements of the Company into a single senior note purchase agreement and concurrently amends and restates the note purchase agreement to be in the form of the Master Note Agreement. The Master Note Agreement provides a framework for the issuance of up to an aggregate of $825 million of notes, including the existing outstanding senior notes, with a three-year draw period, but does not include commitments by any purchaser to purchase additional notes beyond those already outstanding. The notes drawn during this period can have maturity dates up to 12 years from the date of issuance.
In November 2025, the Company issued
$60 million of U.S. dollar-denominated senior notes under the Master Note Agreement, maturing in and bearing an interest rate of 4.83%.
The proceeds were used to repay the Company’s existing $25 million 4.19% senior notes due November 1, 2025 and £25 million 2.76% senior notes due November 1, 2025.
The borrowings under the revolving
credit facility, excluding borrowings on the accounts receivable securitization program, had an average interest rate of
4.44% and 5.46%
for the years ended December 31, 2025 and 2024, respectively.
The aggregate amounts of contractual maturities on long-term debt subsequent to December 31, 2025, are as follows:
|
(In thousands)
|
||||
|
Year ending December 31,
|
||||
|
2026
|
$ |
139,845
|
||
|
2027
|
170,103
|
|||
|
2028
|
121,889
|
|||
|
2029
|
141,907
|
|||
| 2030 |
135,488 |
|||
|
Total long-term debt maturities
|
$
|
709,232
|
||
The Company had $261.2 million available under the revolving
credit facility and $6.0 million available under other lines of credit from several banks at December 31, 2025.
Substantially all of the senior financing obligations contain restrictions concerning interest coverage, borrowings, and investments. The most restrictive loan covenants
require a Leverage Ratio less than 3.5 and an Interest Coverage Ratio greater than 3.0, in each case, as defined in the Company’s Credit Agreement. The Company is in compliance with all of these restrictions at December 31, 2025.
The Company had stand-by and trade letters of credit outstanding of $3.3
million and $3.4 million as of December 31, 2025 and 2024, respectively.
Short-term Borrowings
The Company’s short-term borrowings consisted of the following items at December 31:
|
(In thousands)
|
2025
|
2024
|
||||||
|
U.S. credit facilities
|
$
|
-
|
$
|
18,382
|
||||
|
Current maturities of long-term debt
|
229
|
199
|
||||||
| Loans of foreign subsidiaries |
123 |
1,267 |
||||||
|
Total
|
$
|
352
|
$
|
19,848
|
||||
The weighted average interest rates on short-term borrowings were 5.03%
and 5.67% at December 31, 2025 and 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2017 | Feb 23, 2018 | |
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.