Financing Arrangements

3 Months Ended

Aug. 31, 2016

Financing Arrangements

Financing Arrangements

Note 7 — Financing Arrangements

A summary of the carrying amount of our debt is as follows:

	August 31,			May 31,
	2016			2016
Revolving Credit Facility expiring March 24, 2020 with interest payable monthly	$	117.0		$	110.0
Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 with interest payable monthly	25.0			25.0
Note payable due March 9, 2017 with floating interest rate, payable semi-annually on June 1 and December 1	5.0			10.0
Capital lease obligations	4.6			5.1
Total debt	151.6			150.1
Current maturities of debt	(7.0		)	(12.0		)
Debt issuance costs, net	(1.8		)	(2.0		)
Long-term debt	$	142.8		$	136.1

At August 31, 2016, our debt had a fair value that approximates the carrying value.  These debt instruments are classified as Level 3 in the fair value hierarchy which is defined as a fair value determined based upon one or more significant unobservable inputs.

We are subject to a number of covenants under our financing arrangements, including restrictions that relate to the payment of cash dividends, maintenance of minimum net working capital and tangible net worth levels, sales of assets, additional financing, purchase of our shares and other matters.  We are in compliance with all financial and other covenants under our financing arrangements as of August 31, 2016.

Convertible Notes

During the three-month period ended August 31, 2015, we repurchased $14.4 million of our outstanding 2.25% convertible notes due March 1, 2016 for $14.6 million cash including $0.2 million of accrued interest.  We recognized a $0.3 million loss on the early extinguishment of the notes.  Interest expense on our convertible notes during the three month periods ended August 31, 2016 and 2015 was $0 and $0.9 million, respectively.