Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 85

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 85
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 2027. The amendment also increases the maximum aggregate principal amount of senior notes the Company may issue under the master note agreement from $200 million to $250 million, although the maximum aggregate amount of senior notes bearing interest at a floating rate that may be outstanding at any one time will continue to be $100 million. The amendment also extends the maturity and average life of each senior note bearing interest at a fixed rate that may be issued under the master note agreement from no more than 12 years after the date of issuance to no more than 15 years after the date of issuance, and includes customary provisions for the replacement of LIBOR with SOFR and customary benchmark replacement provisions with respect to senior notes bearing interest at a floating rate. All other material items of the master note agreement remain unchanged. Under the terms of the master note agreement, the Company is required to maintain certain financial ratios as to cash flow leverage and interest coverage similar to the requirements of its other debt agreements.On December 27, 2024, the Company had $818 million in lines of credit, including the $800 million in committed credit facilities described above and $18 million with foreign banks. The unused portion of committed credit lines was $778 million as of December 27, 2024. In addition, the Company has unused, uncommitted lines of credit with foreign banks totaling $20 million. Borrowing rates under these credit lines vary with the prime rate, rates on domestic certificates of deposit and other benchmark rates (e.g. SOFR, EURIBOR, HIBOR, TIBOR and RFR). The Company pays facility fees at an annual rate of up to 0.15% on certain of these lines. No compensating balances are required.Various debt agreements require the Company to maintain certain financial ratios as to cash flow leverage and interest coverage. The Company is in compliance with all financial covenants of its debt agreements as of December 27, 2024.Annual maturities of debt are as follows (in thousands):20252026202720282029ThereafterMaturities of debt$28,537 $— $— $— $— $— Interest paid on debt was $3 million in 2024, $6 million in 2023 and $10 million in 2022.

G. Shareholders’ Equity

At December 27, 2024, the Company had 22,549 authorized, but unissued, cumulative preferred shares, $100 par value. The Company