Debt and Receivables Securitization

9 Months Ended

Feb. 29, 2024

Debt Disclosure [Abstract]

Debt and Receivables Securitization

Note I – Debt and Receivables Securitization

The following table summarizes our long-term debt outstanding at February 29, 2024 and May 31, 2023:

	February 29,			May 31,
(In thousands)	2024			2023
2024 Notes		-			150,000
2026 Notes		-			243,623
4.30% senior notes due August 1, 2032		200,000			200,000
2.06% Series A senior note due August 23, 2031		39,654			39,226
2.40% Series B senior notes due August 23, 2034		59,427			58,786
Other		267			528
Total debt		299,348			692,163
Unamortized discount and debt issuance costs		(1,386	)		(2,181	)
Total debt, net		297,962			689,982
Less: current maturities and short-term borrowings		267			264
Total long-term debt	$	297,695		$	689,718

Maturities of long-term debt are as follows:

(In thousands)
2025	$	267
2026		-
2027		-
2028		-
2029		-
Thereafter		299,081
Total	$	299,348

Long-Term Debt

On April 15, 2014, we issued the 2026 Notes. During fiscal 2023, we purchased approximately $6,377 of the principal amount of the 2026 Notes in open market transactions, leaving $243,623 within long-term debt at May 31, 2023. On June 29, 2023, we notified the trustee under the indenture to which the 2026 Notes are subject that we had elected to redeem in full the 2026 Notes. On July 28, 2023, we redeemed, in full, the 2026 Notes at a price that approximated the par value of the debt of $243,623. In connection with the debt redemption, we recognized a non-cash loss of $1,534 related primarily to unamortized debt issuance costs and amounts deferred in AOCI associated with an interest rate swap executed prior to the issuance of the 2026 Notes.

Other Financing Arrangements

On September 27, 2023, we amended and restated the Credit Facility, extending the final maturity from August 20, 2026 to September 27, 2028, while keeping in place the $500,000 aggregate commitments under the Credit Facility. Borrowings under the Credit Facility have maturities of up to one year. We have the option to borrow at rates equal to an applicable margin over the Simple SOFR, the Prime Rate of PNC Bank, National Association or the Overnight Bank Funding Rate. The applicable margin is determined by our Total Leverage Ratio. There were no borrowings outstanding under the Credit Facility at February 29, 2024, leaving $500,000 available for use.

On May 19, 2022, we entered into the five-year AR Facility that allowed for short-term borrowings of up to $175,000 through the factoring and subsequent sale, on a revolving basis, of eligible accounts receivable of certain of our subsidiaries to Worthington Receivables Company, LLC, a wholly-owned, consolidated, bankruptcy-remote indirect subsidiary. On June 29, 2023, we elected to terminate the AR Facility. No early termination or other similar fees or penalties were paid in connection with the termination.