NOTE 8. CREDIT ARRANGEMENTS

In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due May 15, 2023 (the “2023 Notes”) and received proceeds of $325.0 million, net of underwriting discounts and debt issuance costs. The Company intends to use the proceeds from the 2023 Notes to purchase any and all of its outstanding $200.0 million of 5.625% Notes due 2013 (the “2013 Notes”) and for general corporate purposes. Interest on the 2023 Notes is payable semi-annually on May 15 and November 15 of each year, beginning on November 15, 2013. The Company may, at any time, redeem the 2023 Notes at a redemption price equal to 100 percent of the principal amount, plus a “make-whole” premium described in the indenture. Additionally, if a change of control triggering event occurs, as defined by the terms of the indenture, holders of the 2023 Notes may require the Company to repurchase the 2023 Notes at a purchase price equal to 101 percent of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase. The Company is generally not limited under the indenture governing the 2023 Notes in its ability to incur additional indebtedness provided the Company is in compliance with certain restrictive covenants, including restrictions on liens, sale and leaseback transactions, mergers, consolidations and transfers of substantially all of the Company's assets.

On May 6, 2013, the Company commenced a cash tender offer to purchase any and all of its outstanding 2013 Notes at 102.45% of par. During May 2013, the Company accepted for purchase approximately $60 million of the outstanding principal amount of its 2013 Notes. As a result of the cash tender offer, the Company recognized expenses of approximately $1.5 million related to tender and consent premiums and loss on early extinguishment of debt, all of which are included in selling, general and administrative expenses in the consolidated statements of operations for the three and nine months ended May 31, 2013. Unamortized debt issuance costs associated with the partial repurchase of the 2013 Notes were not material as of May 31, 2013.

On May 20, 2013, the Company provided notice of its election to redeem all of the remaining $140 million outstanding principal amount of its 2013 Notes at 100% of par, plus a make-whole premium, as defined, and accrued and unpaid interest. On June 19, 2013, the Company purchased all of the remaining 2013 Notes outstanding and recognized expenses of approximately $3.1 million related to loss on early extinguishment of debt, write-off of unamortized debt issuance costs, discounts and premiums related to the 2013 Notes.

On December 27, 2011, the Company entered into a third amended and restated $300 million revolving credit facility that matures on December 27, 2016. The maximum availability under this facility can be increased to $400 million with the consent of both parties. The program's capacity, with a sublimit of $50 million for letters of credit, is reduced by outstanding stand-by letters of credit which totaled $31.9 million at May 31, 2013. Under the credit facility, the Company was required to maintain a minimum interest coverage ratio (adjusted EBITDA to interest expense, as each is defined in the facility) of not less than 3.00 to 1.00 for the twelve month cumulative period ended November 30, 2012 and for each fiscal quarter on a rolling twelve month cumulative period thereafter. At May 31, 2013, the Company's interest coverage ratio was 5.57 to 1.00. The credit facility also requires the Company to maintain a debt to capitalization ratio that does not exceed 0.60 to 1.00. At May 31, 2013, the Company's debt to capitalization ratio was 0.55 to 1.00. The credit facility provides for interest based on the LIBOR, the Eurodollar rate or Bank of America's prime rate.

At May 31, 2013, the Company was in compliance with all covenants related to its debt agreements.

During the third quarter of fiscal 2012, the Company terminated its existing interest rate swap transactions and received cash proceeds of approximately $53 million, net of customary finance charges. The resulting gain was deferred and is being amortized as a reduction to interest expense over the remaining term of the respective debt tranches. At May 31, 2013, the unamortized portion was $38.2 million, and for the three and nine months ended May 31, 2013, the amortization of the deferred gain was $2.9 million and $8.7 million, respectively.

The Company has uncommitted credit facilities available from domestic and international banks. In general, these credit facilities are used to support trade letters of credit (including accounts payable settled under bankers' acceptances), foreign exchange transactions and short-term advances which are priced at market rates.

Long-term debt, including the deferred gain from the termination of the interest rate swaps, was as follows:



(in thousands)	Weighted Average Interest Rate as of May 31, 2013	May 31, 2013		August 31, 2012
$200 million notes at 5.625% due November 2013	2.8%	$	141,886	$	204,873
$400 million notes at 6.50% due July 2017	5.7%	412,261		414,491
$500 million notes at 7.35% due August 2018	6.4%	524,086		527,554
$330 million notes at 4.875% due May 2023	4.9%	330,000		—
Other, including equipment notes		13,510		14,407
		1,421,743		1,161,325
Less current maturities		144,162		4,252
		$	1,277,581	$	1,157,073

Interest on these notes is payable semiannually.

CMCP has uncommitted credit facilities of $73.4 million with several banks with expiration dates ranging from September 30, 2013 to March 31, 2014. At May 31, 2013, no amounts were outstanding under these facilities. The weighted average interest rate on these facilities was 4.57% at May 31, 2013.

The Company had no material amounts of interest capitalized in the cost of property, plant and equipment during the periods presented. Interest of $7.5 million and $45.8 million was paid during the three and nine months ended May 31, 2013, respectively, and $5.2 million and $39.8 million during the three and nine months ended May 31, 2012, respectively.