Debt

12 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

On April 14, 2023, the Company entered into a Second Amended and Restated Credit Agreement with Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer and the other lenders, agents and arrangers party thereto (the "Credit Facility"). The Credit Facility amended and restated the Company's existing Amended and Restated Credit Agreement dated as of March 26, 2021 (the "Prior Credit Agreement") which had been set to expire on March 31, 2024. The Second Amendment extends the maturity to April 12, 2028.

The Credit Facility is a secured revolving credit facility with a commitment of $350.0 million subject to the right, from time to time, to request an increase of the commitment by the greater of (i) $300.0 million or (ii) an amount equal to the consolidated EBITDA; and provides for the issuance of letters of credit subject to a $40.0 million sub-limit. The Company has the right to voluntarily prepay and re-borrow loans, to terminate or reduce the commitments under the Credit Facility, and, subject to certain lender approvals, to join subsidiaries as subsidiary borrowers. As of June 30, 2023, the Company had $1.7 million of issued letters of credit under the Credit Facility and no short-term borrowings, with the balance of $348.3 million available to the Company.

Interest on the borrowings under the Credit Facility accrue at variable rates which are determined based upon the Company's consolidated total leverage ratio. The applicable margin to be added to Alternative Currency Daily Rate, Alternative Currency Term Rate and Term SOFR determined loans ranges from 1.75% to 2.50% (2.50% as of June 30, 2023), and for Base Rate-determined loans, from 0.75% to 1.50% (1.50% as of June 30, 2023). The Company also pays a quarterly commitment fee ranging from 0.250% to 0.375% (0.375% as of June 30, 2023), determined based upon the consolidated total leverage ratio, of the unused portion of the commitment under the Credit Facility. In addition, the Company must pay certain letter of credit fees, ranging from 1.75% to 2.50% (2.50% as of June 30, 2023), with respect to letters of credit issued under the Credit Facility. As of June 30, 2023, the borrowing rate for the Credit Facility was 7.64%.

The Company is subject to certain financial and restrictive covenants under the Credit Facility which requires the maintenance of a minimum interest coverage ratio of 3.00 to 1.00 and a consolidated net leverage ratio of no more than 4.00 to 1.00 with a first test date at June 30, 2023, for each. The restrictions of these covenants (other than the financial ratio covenants) are subject to certain exceptions or thresholds triggering amounts or events specified in the Credit Facility, and in some cases the restrictions may be waived by the lenders. As of June 30, 2023, the Company was in compliance with all of the covenants of the Credit Facility.

On February 14, 2022, the Company entered into an amendment (the "Amendment") to the Prior Credit Agreement. The Amendment revised the interest coverage ratio covenant under the Prior Credit Facility Agreement so the first test date was June 30, 2022, and required a minimum interest coverage ratio of 2.00 to 1.00 at June 30, 2022, (calculated for the two fiscal quarters then ended), 3.00 to 1.00 at September 30, 2022, (calculated for the three fiscal quarters then ended) and 3.50 to 1.00 at December 31, 2022, and March 31, 2023 (calculated for the four fiscal quarters then ended). The Amendment revised the restricted period under the Prior Credit Facility Agreement to expire on September 30, 2022, during which the Company was prohibited from incurring any secured debt other than purchase money financing for new equipment and was subject to additional restrictions on its ability to make dividends or distributions of to make certain investments.

On March 26, 2021, the Company entered into the Prior Credit Facility Agreement which contained a $300.0 million secured revolving credit facility. The Prior Credit Facility Agreement amended and restated the Company's previous revolving credit facility, dated March 31, 2017, which had been set to expire in March 2022. The Prior Credit Facility Agreement extended the maturity to March 31, 2024, subject to a springing maturity of November 30, 2022. If, by November 30, 2022, the Company's outstanding $300.0 million 4.45% Senior Notes due in March 2023 were not redeemed, repurchased or refinanced with indebtedness having a maturity date of October 1, 2024 or later, all indebtedness under the Prior Credit Facility Agreement would have been due. The springing maturity clause has been satisfied with the issuance of the 2030 Notes and subsequent payment in full of the 2023 Notes.

On March 16, 2022, the Company completed its offering and sale of $300.0 million in aggregate principal amount of 7.625% Senior Notes due 2030 (the "2030 Notes"). The 2030 Notes accrue interest at the rate of 7.625% per annum, with interest payable in cash semi-annually in arrears on March 15 and September 15, commencing September 15, 2022. The 2030 Notes will mature on March 15, 2030. The 2030 Notes are senior unsecured indebtedness of the Company, ranking equally in right of payment with all its existing and future senior unsecured indebtedness and senior to its future subordinated indebtedness. The Company used the net proceeds from the issuance of the 2030 Notes to repay, in April 2022, in full $300.0 million in principal of its 4.45% senior unsecured notes due March 2023, including any interest and premium due thereon.

Long-term debt outstanding at June 30, 2023 and 2022 consisted of the following: 

	June 30,
($ in millions)	2023		2022
Senior unsecured notes, 6.375% due July 2028 (face value of $400.0 million at June 30, 2023 and 2022)	$	396.5	$	395.9
Senior unsecured notes, 7.625% due March 2030 (face value of $300.0 million at June 30, 2023 and 2022)	296.5		295.9
Total	693.0		691.8
Less: amounts due within one year	—		—
Long-term debt, net of current portion	$	693.0	$	691.8

Aggregate maturities of long-term debt for the five fiscal years subsequent to June 30, 2023, are $0.0 million.

For the years ended June 30, 2023, 2022 and 2021, interest costs totaled $55.6 million, $45.7 million and $40.8 million, respectively, of which $1.5 million, $0.8 million and $8.1 million, respectively, were capitalized as part of the cost of property, plant, equipment and software. The higher interest expense is largely due to higher interest rates on debt that was refinanced and short-term borrowings under the Company's Credit Facility. Debt extinguishment losses, net for the fiscal year ended June 30, 2023 were $0.0 million as compared with $6.0 million for the fiscal year ended June 30, 2022. Debt extinguishment losses, net for the fiscal year ended June 30, 2021 were $8.2 million which included $10.5 million of debt prepayment costs on the Notes due July 2021 offset by gains of $2.3 million on related interest rate swaps that were terminated in connection with the prepayment.