Air Products Chemicals Inc
For the period ended Sep 30, 2024. Filed Nov 21, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Nov 21, 2024
Contents
Debt
- DEBT
The table below summarizes our total outstanding debt as reflected on our consolidated balance sheets:
| 30 September | 2024 | 2023 |
|---|---|---|
| Short-term borrowings(A) | $83.5 | $259.5 |
| Current portion of long-term debt | 611.4 | 615.0 |
| Long-term debt | 13,428.6 | 9,280.6 |
| Long-term debt – related party | 104.4 | 150.7 |
| Total Debt | $14,227.9 | $10,305.8 |
(A)Balances reflect bank obligations with weighted average interest rates of 4.0% and 5.2% as of 30 September 2024 and 2023, respectively. The decrease from fiscal year 2023 is primarily due to the repayment of commercial paper.
Related Party Debt
Our related party debt includes loans with our joint venture partners. Total debt owed to related parties was $304.4 and $328.3 as of 30 September 2024 and 30 September 2023, respectively, of which $200.0 and $177.6, respectively, was reflected within "Current portion of long-term debt" on our consolidated balance sheets. The remaining related party debt balance as of 30 September 2024 primarily includes a loan with Lu’An Clean Energy Company.
Debt Covenants
Various debt agreements to which we are a party include financial covenants and other restrictions, including restrictions pertaining to the ability to create property liens and enter into certain sale and leaseback transactions. As of 30 September 2024, we were in compliance with all the financial and other covenants under our debt agreements.
Summary of Long-Term Debt Instruments
The table below summarizes the coupon interest rates, fiscal year maturities, and carrying amounts of our long-term debt, including current portion and amounts owed to related parties. Variable rates are determined as of 30 September 2024.
| 30 September | Maturities | 2024 | 2023 |
|---|---|---|---|
| Payable in U.S. Dollars | |||
| Medium-term Notes (weighted average rate) | |||
| Series E 7.6% | 2026 | $17.2 | $17.2 |
| Senior Notes | |||
| Note 3.35% | 2024 | — | 400.0 |
| Note 1.50% | 2026 | 550.0 | 550.0 |
| Note 1.85% | 2027 | 650.0 | 650.0 |
| Note 4.60% | 2029 | 750.0 | — |
| Note 2.05% | 2030 | 900.0 | 900.0 |
| Note 4.75% | 2031 | 600.0 | — |
| Note 4.80% | 2033 | 600.0 | 600.0 |
| Note 4.85% | 2034 | 1,150.0 | — |
| Note 2.70% | 2040 | 750.0 | 750.0 |
| Note 2.80% | 2050 | 950.0 | 950.0 |
| Other (weighted average rate) | |||
| Variable-rate industrial revenue bonds 3.38% | 2035 to 2050 | 618.9 | 618.9 |
| Other variable-rate 7.11% | 2025 | 38.8 | 41.4 |
| Payable in Other Currencies | |||
| Eurobonds 1.000% | 2025 | 334.0 | 317.2 |
| Eurobonds 0.500% | 2028 | 556.7 | 528.6 |
| Eurobonds 0.800% | 2032 | 556.7 | 528.6 |
| Eurobonds 4.000% | 2035 | 779.4 | 740.1 |
| Saudi Riyal Loan Facility variable-rate 7.35% | 2027 | 451.1 | 451.1 |
| Saudi Riyal Loan Facility 2.00% | 2026 to 2034 | 222.2 | 192.1 |
| New Taiwan Dollar Loan Facility 1.86% | 2025 to 2028 | 131.5 | 167.5 |
| New Taiwan Dollar Loan Facility 2.66% | 2026 to 2029 | 190.6 | 186.1 |
| New Taiwan Dollar Loan Facility variable-rate 2.72% | 2026 to 2030 | 94.8 | 3.1 |
| Other 4.07% (weighted average rate) | 2033 to 2034 | 9.4 | — |
| Related Party Debt | |||
| Chinese Renminbi 5.5% | 2025 to 2027 | 279.8 | 313.5 |
| Chinese Renminbi 5.7% | 2033 | 24.6 | 14.8 |
| Non-Recourse Debt Associated With NGHC(A) | 2027 to 2053 | 3,271.8 | 1,364.8 |
| Finance Lease Obligations (weighted average rate) | |||
| Foreign 10.8% | 2025 to 2036 | 8.0 | 7.5 |
| Total Principal Amount | $14,485.5 | $10,292.5 | |
| Less: Unamortized discount and debt issuance costs | 304.5 | 165.7 | |
| Less: Fair value hedge accounting adjustments(B) | 36.6 | 80.5 | |
| Total Long-term Debt | $14,144.4 | $10,046.3 | |
| Less: Current portion of long-term debt | 611.4 | 615.0 | |
| Less: Long-term debt – related party | 104.4 | 150.7 | |
| Long-term Debt | $13,428.6 | $9,280.6 | |
(A)Refer to Note 3, Variable Interest Entities, for additional information.
(B)Refer to Note 15, Financial Instruments, for additional information.
Principal maturities of long-term debt, including current portion and amounts owed to related parties, in each of the next five years and thereafter are as follows:
| 2025 | $611.6 |
| 2026 | 716.3 |
| 2027 | 1,292.5 |
| 2028 | 760.5 |
| 2029 | 977.7 |
| Thereafter | 10,126.9 |
| Total | $14,485.5 |
Interest
The table below reconciles interest incurred to interest expense as presented on our consolidated income statements. Capitalized interest represents the portion of interest incurred that we include in the cost of new plant and equipment that we build during the year.
| Fiscal Year Ended 30 September | 2024 | 2023 | 2022 |
|---|---|---|---|
| Interest incurred | $507.9 | $292.9 | $169.0 |
| Less: Capitalized interest | 289.1 | 115.4 | 41.0 |
| Interest expense | $218.8 | $177.5 | $128.0 |
Cash paid for interest, net of amounts capitalized, was $198.2, $131.5, and $128.5 in fiscal years 2024, 2023, and 2022, respectively.
Issuance of Green Senior Notes
In February 2024, we issued green senior notes with an aggregate principal amount of $2.5 billion in a registered public offering. The proceeds from the notes were reduced by deferred financing charges and discounts of approximately $20, which are being amortized through interest expense over the life of the underlying bonds. We intend to use the net proceeds to finance or refinance existing or future projects that are expected to have environmental benefits as defined under our Green Finance Framework.
The interest rate, maturity, and carrying amount as of 30 September 2024 for each of these notes are summarized in the table below:
| Fiscal YearMaturities | 30 September 2024 | |
|---|---|---|
| Senior Note 4.600% | 2029 | $750.0 |
| Senior Note 4.750% | 2031 | 600.0 |
| Senior Note 4.850% | 2034 | 1,150.0 |
| Total | $2,500.0 |
Credit Facilities
2024 Credit Agreements
In March 2024, we entered into afive-year $3.0 billion revolving credit agreement maturing 31 March 2029 (the “2024 Five-Year Credit Agreement”) as well as a 364-day $500.0 revolving credit agreement maturing 27 March 2025 that we have the ability to convert into a term loan maturing 27 March 2026 (the “2024 364-Day Credit Agreement” and, together with the 2024 Five-Year Credit Agreement, the “2024 Credit Agreements”). Both of the 2024 Credit Agreements are syndicated facilities that provide a source of liquidity and support our commercial paper program through availability of senior unsecured debt to us and certain of our subsidiaries. As of 30 September 2024, no borrowings were outstanding under either of the 2024 Credit Agreements.
Borrowings under both of the 2024 Credit Agreements bear interest at quoted market rates plus varying spreads based on our public debt ratings. Each of the 2024 Credit Agreements also requires a commitment fee on unused commitments based on our public debt ratings. There are no financial maintenance covenants in either of the 2024 Credit Agreements.
The 2024 Five-Year Credit Agreement replaced our previous $2.75 billion revolving credit agreement (the “2021 Credit Agreement”), which was terminated upon execution of the 2024 Five-Year Credit Agreement. No borrowings were outstanding under the 2021 Credit Agreement at the time of its termination, andno early termination penalties were incurred.
Foreign Credit Facilities
We also have credit facilities available to certain of our foreign subsidiaries totaling $1,223.9, of which $1,129.0 was borrowed and outstanding as of 30 September 2024. The amount borrowed and outstanding as of 30 September 2023 was $1,041.4.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.