Debt

3 Months Ended

Sep. 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 then existing Amended and Restated Credit Agreement dated as of March 26, 2021 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 September 30, 2023, the Company had $1.7 million of issued letters of credit under the Credit Facility and no short-term borrowings. The balance of $348.3 million remains available to the Company.

Interest on the borrowings under the Credit Facility accrues 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% (2.00% as of September 30, 2023), and for Base Rate-determined loans, from 0.75% to 1.50% (1.00% as of September 30, 2023). The Company also pays a quarterly commitment fee ranging from 0.250% to 0.375% (0.300% as of September 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% (2.00% as of September 30, 2023), with respect to letters of credit issued under the Credit Facility. As of September 30, 2023, the borrowing rate for the Credit Facility was 7.32%.

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. 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 September 30, 2023, the Company was in compliance with all of the covenants of the Credit Facility.

Long-term debt outstanding as of September 30, 2023 and June 30, 2023 consisted of the following:

($ in millions)	September 30, 2023		June 30, 2023
Senior unsecured notes, 6.375% due July 2028 (face value of $400.0 million at September 30, 2023 and June 30, 2023)	$	396.7	$	396.5
Senior unsecured notes, 7.625% due March 2030 (face value of $300.0 million at September 30, 2023 and June 30, 2023)	296.6		296.5
Total debt	693.3		693.0
Less: amounts due within one year	—		—
Long-term debt, net of current portion	$	693.3	$	693.0

For the three months ended September 30, 2023 and 2022, interest costs totaled $13.2 million and $12.9 million, respectively, of which $0.5 million and $0.3 million, respectively, were capitalized as part of the cost of property, plant, equipment and software.