DENTSPLY SIRONA Inc.XRAY
DENTSPLY SIRONA Inc. Debt Disclosure
FINANCING ARRANGEMENTS
Notes Payable and Current Portion of Long-Term Debt
Notes payable and current portion of long-term debt was as follows:
| Year Ended December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| Principal | Interest | Principal | Interest | |||||||||||||||||||||||
| (in millions except percentages) | Balance | Rate | Balance | Rate | ||||||||||||||||||||||
| Corporate commercial paper facility | $ | 82 | 4.4 | % | $ | 410 | 5.3 | % | ||||||||||||||||||
| Other short-term borrowings | 3 | 4.5 | % | 11 | 4.9 | % | ||||||||||||||||||||
| Add: Current portion of long-term debt | 228 | 128 | ||||||||||||||||||||||||
| Total notes payable and current portion of long-term debt | $ | 313 | $ | 549 | ||||||||||||||||||||||
| Average amount of short-term debt outstanding during the year | 136 | 344 | ||||||||||||||||||||||||
| Weighted-average interest rate on short-term debt at year-end | 4.4 | % | 5.3 | % | ||||||||||||||||||||||
Short-Term Financing
The Company has a five-year senior unsecured multi-currency revolving facility, for an aggregate principal amount of $700 million, that expires on May 12, 2028. The Company also has a $700 million commercial paper program. The $700 million multi-currency revolving credit facility serves as a back-up to the commercial paper facility, resulting in an aggregate of $700 million total available credit under the commercial paper facility and the multi-currency revolving credit facility. The Company had outstanding borrowings of $82 million and $410 million under the commercial paper facility at December 31, 2025 and December 31, 2024, respectively, and no outstanding borrowings under the multi-currency revolving credit facility. The Company also has access to $22 million in uncommitted short-term financing available under lines of credit from various financial institutions, which is reduced by outstanding short-term borrowings of $3 million.
At December 31, 2025, the Company had $637 million borrowings available under unused lines of credit, including lines available under its short-term arrangements and revolving credit facility.
Long-Term Debt
Long-term debt was as follows:
| Year Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Principal | Principal | Due | |||||||||||||||||||||
| (Principal balances in millions) | Balance | Balance | |||||||||||||||||||||
0.9% Private placement notes 25 million Swiss franc | — | 28 | December 2025 | ||||||||||||||||||||
2.1% Private placement notes 97 million euros | — | 100 | December 2025 | ||||||||||||||||||||
2.1% Private placement notes 26 million euros | 31 | 27 | February 2026 | ||||||||||||||||||||
1.0% Private placement notes 58 million Swiss franc | 73 | 64 | August 2026 | ||||||||||||||||||||
2.3% Private placement notes 106 million euros | 125 | 110 | August 2026 | ||||||||||||||||||||
1.3% Private placement notes 70 million euros | 82 | 72 | October 2027 | ||||||||||||||||||||
1.0% Private placement notes 8 million Swiss franc | 9 | 8 | December 2027 | ||||||||||||||||||||
2.2% Private placement notes 15 million euros | 18 | 16 | December 2027 | ||||||||||||||||||||
1.2% Private placement notes 140 million Swiss franc | 177 | 154 | August 2028 | ||||||||||||||||||||
1.5% Private placement notes 70 million euros | 82 | 72 | October 2029 | ||||||||||||||||||||
3.3% Fixed rate senior notes 750 million | 749 | 750 | June 2030 | ||||||||||||||||||||
1.6% Private placement notes 70 million euros | 82 | 72 | October 2030 | ||||||||||||||||||||
2.5% Private placement notes 45 million euros | 53 | 47 | February 2031 | ||||||||||||||||||||
1.3% Private placement notes 65 million Swiss franc | 82 | 72 | August 2031 | ||||||||||||||||||||
1.0% Private placement notes 12.6 billion Japanese yen | 80 | 80 | September 2031 | ||||||||||||||||||||
1.7% Private placement notes 70 million euros | 82 | 72 | October 2031 | ||||||||||||||||||||
8.4% Private placement notes 550 million U.S. dollars | 550 | — | September 2055 | ||||||||||||||||||||
| Other borrowings, various currencies and rates | 1 | 4 | |||||||||||||||||||||
Hedge accounting fair value adjustment(a) | (19) | (28) | |||||||||||||||||||||
| $ | 2,257 | $ | 1,720 | ||||||||||||||||||||
| Less: Current portion | |||||||||||||||||||||||
| (included in “Notes payable and current portion of long-term debt” in the Consolidated Balance Sheets) | 228 | 128 | |||||||||||||||||||||
| Less: Long-term portion of deferred financing costs | 14 | 6 | |||||||||||||||||||||
| Long-term portion | $ | 2,015 | $ | 1,586 | |||||||||||||||||||
(a) Represents the fair value of interest rate swap agreements entered into on a portion of the outstanding senior notes.
Our private placement notes and revolving credit facility contain financial covenants, including maximum Total Leverage Ratio and maximum Senior Leverage Ratio requirements. On December 24, 2025, these covenants were amended to permit higher leverage levels that step down over time from 4.25 to 1.00 for the four fiscal quarter period ended December 31, 2025 to 2.50 to 1.00 in the quarter ended December 31, 2027 and thereafter. The amendments also added restrictions on certain restricted payments, revised the definition of EBITDA to allow limited addbacks for efficiency‑initiative costs through 2026, and excluded swap obligations from the definition of debt for covenant calculations. At December 31, 2025, we were in compliance with all covenants.
The contractual maturity dates of the Company’s long-term borrowings as of December 31, 2025 were as follows:
| (in millions) | ||||||||
| 2026 | $ | 228 | ||||||
| 2027 | 110 | |||||||
| 2028 | 177 | |||||||
| 2029 | 82 | |||||||
| 2030 | 832 | |||||||
| 2031 and beyond | 847 | |||||||
| $ | 2,276 | |||||||
Interest expense, net includes interest income of $14 million, $20 million and $16 million for the years ended December 31, 2025, 2024 and 2023, respectively. Interest income primarily relates to interest-bearing cash and cash equivalents.
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.