Quarterly report pursuant to Section 13 or 15(d)

Borrowings

v3.24.2
Borrowings
 3 Months Ended
May 31, 2024
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
Borrowings consist of the following:
May 31, 2024 February 29,
2024
Current Long-term Total Total
(in millions)
Short-term borrowings
Commercial paper $ 793.2  $ 241.4 
$ 793.2  $ 241.4 
Long-term debt
Senior notes $ 399.7  $ 10,673.7  $ 11,073.4  $ 11,620.1 
Other 6.5  9.2  15.7  17.8 
$ 406.2  $ 10,682.9  $ 11,089.1  $ 11,637.9 

Bank facilities
The Company, CB International, the Administrative Agent, and certain other lenders are parties to the 2022 Credit Agreement. The October 2022 Credit Agreement Amendment revised certain defined terms and covenants in the 2022 Credit Agreement and became effective in April 2024 following (i) the amendment by Canopy of its Articles of Incorporation, (ii) the conversion of our Canopy common shares into Exchangeable Shares, and (iii) the resignation of our nominees from the board of directors of Canopy.
Information with respect to borrowings under the 2022 Credit Agreement is as follows:
Outstanding
borrowings		 Interest
rate		 SOFR
margin		 Outstanding
letters of
credit
Remaining
borrowing
capacity (1)
(in millions)
May 31, 2024
Revolving credit facility (2) (3)
$ —  —  % —  % $ 11.4  $ 1,443.1 
February 29, 2024
Revolving credit facility (2) (3)
$ —  —  % —  % $ 11.5  $ 1,997.0 
(1)Net of outstanding revolving credit facility borrowings and outstanding letters of credit under the 2022 Credit Agreement and outstanding borrowings under our commercial paper program of $795.5 million and $241.5 million (excluding unamortized discount) as of May 31, 2024 and February 29, 2024, respectively (see “Commercial paper program” below).
(2)Contractual interest rate varies based on our debt rating (as defined in the agreement) and is a function of SOFR plus a margin and a credit spread adjustment, or the base rate plus a margin, or, in certain circumstances where SOFR cannot be adequately ascertained or available, an alternative benchmark rate plus a margin.
(3)We and/or CB International are the borrower under the $2,250.0 million revolving credit facility with a maturity date of April 14, 2027. Includes a sub-facility for letters of credit of up to $200.0 million.

We and our subsidiaries are subject to covenants that are contained in the 2022 Credit Agreement, including those restricting the incurrence of additional subsidiary indebtedness, additional liens, mergers and consolidations, transactions with affiliates, and sale and leaseback transactions, in each case subject to numerous conditions, exceptions, and thresholds. The financial covenants are limited to a minimum interest coverage ratio and a maximum net leverage ratio.

Commercial paper program
We have a commercial paper program which provides for the issuance of up to an aggregate principal amount of $2.25 billion of commercial paper. Our commercial paper program is backed by unused commitments under our revolving credit facility under our 2022 Credit Agreement. Accordingly, outstanding borrowings under our commercial paper program reduce the amount available under our revolving credit facility. Information with respect to our outstanding commercial paper borrowings is as follows:
May 31,
2024		 February 29,
2024
(in millions)
Outstanding borrowings (1)
$ 793.2  $ 241.4 
Weighted average annual interest rate 5.7  % 5.7  %
Weighted average remaining term 20 days 4 days
(1)Outstanding commercial paper borrowings are net of unamortized discount.
Debt payments
As of May 31, 2024, the required principal repayments under long-term debt obligations (excluding unamortized debt issuance costs and unamortized discounts of $53.8 million and $22.8 million, respectively) for the remaining nine months of Fiscal 2025 and for each of the five succeeding fiscal years and thereafter are as follows:
(in millions)
Fiscal 2025 $ 405.3 
Fiscal 2026 1,404.9 
Fiscal 2027 603.8 
Fiscal 2028 1,801.5 
Fiscal 2029 900.1 
Fiscal 2030
 800.0 
Thereafter 5,250.1 
$ 11,165.7