CREDIT ARRANGEMENTS

9 Months Ended

May 31, 2022

Debt Disclosure [Abstract]

Credit arrangements

NOTE 9. CREDIT ARRANGEMENTS

Long-term debt was as follows: 

(in thousands)	Weighted Average Interest Rate as of May 31, 2022	May 31, 2022		August 31, 2021
2032 Notes	4.375%	$	300,000	$	—
2031 Notes	3.875%	300,000		300,000
2030 Notes	4.125%	300,000		—
2027 Notes	5.375%	—		300,000
2023 Notes	4.875%	330,000		330,000
Series 2022 Bonds, due 2047	4.000%	145,060		—
Poland Term Loan	7.890%	37,923		49,726
Short-term borrowings	6.180%	62,627		26,560
Other	4.560%	20,151		19,492
Finance leases		54,965		52,144
Total debt		1,550,726		1,077,922
Less unamortized debt issuance costs		(17,043)		(8,141)
Plus unamortized bond premium		4,886		—
Total amounts outstanding		1,538,569		1,069,781
Less current maturities of long-term debt and short-term borrowings		(423,091)		(54,366)
Long-term debt		$	1,115,478	$	1,015,415

The Company's credit arrangements require compliance with certain non-financial and financial covenants, including an interest coverage ratio and a debt to capitalization ratio. At May 31, 2022, the Company believes it was in compliance with all covenants contained in its credit arrangements.

Senior Notes Activity

In January 2022, the Company issued $300.0 million of 4.125% Senior Notes due January 2030 (the "2030 Notes") and $300.0 million of 4.375% Senior Notes due March 2032 (the "2032 Notes"). Aggregate issuance costs associated with the 2030 Notes and 2032 Notes were approximately $9.4 million. Interest on the 2030 Notes is payable semiannually on January 15 and July 15. Interest on the 2032 Notes is payable semiannually on March 15 and September 15.

In July 2017, the Company issued $300.0 million of 5.375% Senior Notes due July 2027 (the "2027 Notes"). In February 2022, the Company redeemed all of the 2027 Notes and recognized a $16.1 million loss on debt extinguishment.

In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due May 2023 (the "2023 Notes"). Accordingly, the 2023 Notes have been included within current maturities of long-term debt and short-term borrowings in the condensed consolidated balance sheet as of May 31, 2022.

Series 2022 Bonds

In February 2022, the Company announced the issuance of $145.1 million in original aggregate principal amount of tax-exempt bonds (the “Series 2022 Bonds”) by the Industrial Development Authority of the County of Maricopa (the "MCIDA"). The Series 2022 Bonds were priced to yield 3.5% and provided gross proceeds of $150.0 million. The proceeds were loaned to the Company pursuant to a loan agreement between the Company and the MCIDA and will be used to fund a portion of the acquisition, construction, equipping and/or operation, as applicable, of the Company’s third micro mill, which is under construction in Mesa, Arizona. Proceeds from the Series 2022 Bonds are being held in a trust account and will be disbursed as qualified expenditures are made for the construction of the micro mill. As of May 31, 2022, $58.0 million of proceeds were disbursed from the trust account. Remaining proceeds from the Series 2022 Bonds were recorded as restricted cash in the condensed consolidated balance sheet as of May 31, 2022.

Issuance costs associated with the Series 2022 Bonds were $3.1 million. The Series 2022 Bonds accrue interest at 4.0%, payable semiannually, and have a maturity date in October 2047.

Credit Facilities

The Company had no amounts drawn under its $400.0 million revolving credit facility (the "Revolver") at May 31, 2022 or August 31, 2021. The availability under the Revolver was reduced by outstanding stand-by letters of credit totaling $1.4 million and $3.0 million at May 31, 2022 and August 31, 2021, respectively.

The Company has a Term Loan facility (the "Poland Term Loan") through its subsidiary, CMC Poland Sp. z.o.o. ("CMCP"). At May 31, 2022, PLN 161.9 million, or $37.9 million, was outstanding, compared to the maximum amount available under the facility, PLN 190.5 million, or $49.7 million, which was outstanding as of August 31, 2021.

The Company also has credit facilities in Poland through its subsidiary, CMCP. At May 31, 2022 and August 31, 2021, CMCP's credit facilities totaled PLN 300.0 million, or $70.3 million and $78.3 million, respectively. There were no amounts outstanding under these facilities as of May 31, 2022 or August 31, 2021. The available balance of these credit facilities was reduced by outstanding stand-by letters of credit, guarantees and/or other financial assurance instruments, which totaled $0.9 million and $5.7 million at May 31, 2022 and August 31, 2021, respectively.

Accounts Receivable Facilities

The Company had no advance payments outstanding under its U.S. trade accounts receivable facility at May 31, 2022 or August 31, 2021.

The Poland accounts receivable facility had a limit of PLN 288.0 million, or $67.5 million, at May 31, 2022. The Company had PLN 267.4 million, or $62.6 million, advance payments outstanding under the Poland accounts receivable facility at May 31, 2022, compared to PLN 101.7 million, or $26.6 million, advance payments outstanding at August 31, 2021.