Debt

3 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Note 9. Debt

3.75% Convertible Senior Notes due June 2026

In May 2021, the Company issued $100.0 million aggregate principal amount of its 3.75% Convertible Senior Notes due June 2026 (the “3.75% Convertible Notes due 2026”) under an indenture agreement between the Company and The Bank of New York Mellon

Trust Company, N.A., as trustee. As of September 30, 2023, the if-converted value of its 3.75% Convertible Notes due 2026 did not exceed the outstanding principal amount.

Credit Facilities

As of September 30, 2023, $10.0 million of aggregate principal amount was outstanding under the Company's $40.0 million revolving credit facility (the “Revolving Credit Facility”), $68.5 million aggregate principal amount was outstanding under the Company's five-year $80.0 million term loan (the “Term Loan Facility”), and $0.8 million of associated unamortized debt costs. As of June 30, 2023, $10.0 million of aggregate principal amount was outstanding under the Revolving Credit Facility, $70.0 million aggregate principal amount was outstanding under the Term Loan Facility, and $0.9 million of associated unamortized debt costs.

In fiscal year 2024, interest on the borrowings under the Credit Facilities is payable in arrears on the applicable interest payment date, at an annual interest rate of reserve-adjusted, 90-day term Secured Overnight Financing Rate (subject to a 0.50% floor) plus a margin between 2.50% and 3.25% margin, determined by the Consolidated Senior Net Leverage Ratio (as defined in the credit agreement governing the Credit Facilities, (the “Credit Agreement”). During the three months ended September 30, 2023, the weighted average effective interest rate on both the Term Loan Facility and Revolving Credit Facility was approximately 8.3%.

The Credit Agreement requires the Company to pay the lenders an unused commitment fee equal to the average unused portion of the Revolving Credit Facility. The Company pays a rate of 0.25% to 0.40% per annum of the average unused portion of the Revolving Credit Facility, determined by the Consolidated Senior Net Leverage Ratio (as defined in the Credit Agreement). If all or a portion of the loans under the Term Loan Facility are prepaid, then the Company will be required to pay a fee equal to 1% of the aggregate amount of the loans so prepaid, subject to certain exceptions.

The Credit Agreement contains restrictions and covenants applicable to the Company and its subsidiaries. Among other requirements, the Company may not permit the Fixed Charge Coverage Ratio (as defined in the Credit Agreement) to be less than a certain specified ratio for each fiscal quarter during the term of the Credit Agreement or the consolidated senior net leverage ratio to be greater than a certain specified ratio for each fiscal quarter during the term of the Credit Agreement. As of September 30, 2023, the Company was in compliance with its covenants under the Credit Agreement.

The following table presents the carrying value of the 3.75% Convertible Notes due 2026, the Term Loan Facility and the Revolving Credit Facility (in thousands):

	September 30, 2023							June 30, 2023
	Principal Amount		Unamortized Debt Costs			Net Carrying Amount		Principal Amount		Unamortized Debt Costs			Net Carrying Amount
3.75% Convertible Senior Notes due 2026	$	100,000	$	(1,665	)	$	98,335	$	100,000	$	(1,811	)	$	98,189
Term Loan Facility		68,500		(814	)		67,686		70,000		(906	)		69,094
Revolving Credit Facility		10,000		—			10,000		10,000		—			10,000
Total debt	$	178,500	$	(2,479	)	$	176,021	$	180,000	$	(2,717	)	$	177,283
Reported as:
Short-term debt						$	6,229						$	5,721
Long-term debt							169,792							171,562
Total debt						$	176,021						$	177,283

A summary of interest expense on the Notes, the Revolving Credit Facility, and the Term Loan Facility is as follows (in thousands):

	Three Months Ended September 30,
	2023		2022
Interest expense related to contractual interest coupon	$	2,669	$	2,032
Interest expense related to amortization of debt issuance costs		238	$	219
Total	$	2,907	$	2,251