| DEBT |
NOTE 11 – DEBT
Short-term borrowings consist of unsecured lines of credit. The following table summarizes the balances of total facilities, facilities used and facilities available (in thousands):
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Facilities Used
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Total Amount
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Short-term
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Letters of
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Facilities
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Weighted average
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of Facilities
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Borrowings
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Credit
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Available
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interest rate
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August 31, 2019
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$
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69,000
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$
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7,540
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$
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486
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$
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60,974
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6.1
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%
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August 31, 2018
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$
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69,000
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$
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—
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$
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632
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$
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68,368
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—
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%
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As of August 31, 2019 and August 31, 2018, the Company had approximately $40.0 million of short-term facilities in the U.S. that require compliance with certain quarterly financial covenants. As of August 31, 2019 and August 31, 2018, the Company was in compliance with respect to these covenants. Each of the facilities expires annually except for the U.S. facility, which expires bi-annually. The facilities are normally renewed.
The following table provides the changes in long-term debt for the twelve months ended August 31, 2019:
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(Amounts in thousands)
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Current
portion of
long-term debt
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Long-term
debt (net of current portion)
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Total
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Balances as of August 31, 2017
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$
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18,358
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$
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87,939
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$
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106,297
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(1)
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Proceeds from long-term debt incurred during the period:
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Panama subsidiary
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1,500
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13,500
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15,000
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Honduras subsidiary
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1,350
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12,150
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13,500
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Repayments of long-term debt:
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Repayment of loan by Honduras subsidiary with Scotiabank
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(600)
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(850)
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(1,450)
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Repayment of loan by Honduras subsidiary with Citibank
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(1,850)
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(6,063)
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(7,913)
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Repayment of loan by Trinidad subsidiary
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(3,000)
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(3,000)
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(6,000)
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Regularly scheduled loan payments
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(4,052)
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(12,673)
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(16,725)
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Reclassifications of long-term debt
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3,005
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(3,005)
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—
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Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar
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144
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(278)
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(134)
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Balances as of August 31, 2018
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14,855
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87,720
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102,575
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(2)
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Regularly scheduled loan payments
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(4,467)
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(8,472)
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(12,939)
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Reclassifications of long-term debt
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15,394
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(15,394)
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—
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Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar (3)
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93
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(143)
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(50)
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Balances as of August 31, 2019
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$
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25,875
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$
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63,711
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$
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89,586
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(4)
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(1)
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The carrying amount on non-cash assets assigned as collateral for these loans was $128.4 million. No cash assets were assigned as collateral for these loans. |
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(2)
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The carrying amount on non-cash assets assigned as collateral for these loans was $125.9 million. No cash assets were assigned as collateral for these loans. |
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(3)
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These foreign currency translation adjustments are recorded within other comprehensive income. |
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(4)
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The carrying amount on non-cash assets assigned as collateral for these loans was $111.3 million. No cash assets were assigned as collateral for these loans. |
The following table provides a summary of the long-term loans entered into by the Company:
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August 31,
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August 31,
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2019
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2018
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Loans entered into by the Company's subsidiaries with a balloon payment due at the end of the loan term and with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants
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$
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7,481
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$
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9,509
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Loans entered into by the Company's subsidiaries for which the subsidiary has entered into an interest rate swap with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants
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53,544
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60,849
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Loans entered into by the Company's subsidiaries with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants
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4,337
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4,392
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Loans entered into by the Company's subsidiaries for which the subsidiary has entered into a cross-currency interest rate swap with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants
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24,224
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27,825
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Total long-term debt
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89,586
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102,575
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Less: current portion
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25,875
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14,855
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Long-term debt, net of current portion
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$
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63,711
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$
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87,720
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As of August 31, 2019, the Company had approximately $83.1 million of long-term loans in several foreign subsidiaries that require these subsidiaries to comply with certain annual or quarterly financial covenants, which include debt service and leverage ratios. As of August 31, 2019, the Company was in compliance with all covenants or amended covenants.
As of August 31, 2018, the Company had approximately $93.6 million of long-term loans in several foreign subsidiaries that require these subsidiaries to comply with certain annual or quarterly financial covenants, which include debt service and leverage ratios. As of August 31, 2018, the Company was in compliance with all covenants or amended covenants.
Annual maturities of long-term debt are as follows (in thousands):
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Twelve Months Ended August 31,
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Amount
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2020
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$
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25,875
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2021
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9,218
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2022
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6,310
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2023
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17,848
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2024
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1,542
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Thereafter
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28,793
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Total
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$
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89,586
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