CREDIT ARRANGEMENTS

9 Months Ended

May 31, 2023

Debt Disclosure [Abstract]

Credit arrangements

NOTE 7. CREDIT ARRANGEMENTS

Long-term debt was as follows: 

(in thousands)	Weighted Average Interest Rate as of May 31, 2023	May 31, 2023		August 31, 2022
2023 Notes	4.875%	$	—	$	330,000
2030 Notes	4.125%	300,000		300,000
2031 Notes	3.875%	300,000		300,000
2032 Notes	4.375%	300,000		300,000
Series 2022 Bonds, due 2047	4.000%	145,060		145,060
Poland Term Loan	—	—		32,439
Short-term borrowings	7.750%	24,571		26,390
Other	4.547%	19,030		21,278
Finance leases	4.793%	81,032		58,536
Total debt		1,169,693		1,513,703
Less unamortized debt issuance costs		(15,282)		(16,496)
Plus unamortized bond premium		4,694		4,838
Total amounts outstanding		1,159,105		1,502,045
Less current maturities of long-term debt and short-term borrowings		(56,222)		(388,796)
Long-term debt		$	1,102,883	$	1,113,249

The Company's credit arrangements require compliance with certain covenants, including an interest coverage ratio and a debt to capitalization ratio. At May 31, 2023, the Company was in compliance with all financial covenants in its credit arrangements.

Capitalized interest, resulting primarily from the construction of the Company's third micro mill, was $6.2 million and $16.2 million during the three and nine months ended May 31, 2023, respectively, compared to $3.6 million and $7.8 million, respectively, during the corresponding periods.

Senior Notes Activity

In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due May 2023 (the "2023 Notes"). As of August 31, 2022, the 2023 Notes were included in current maturities of long-term debt and short-term borrowings in the consolidated balance sheet. In November 2022, the Company repurchased $115.9 million in aggregate principal amount of the 2023 Notes through a cash tender offer and recognized an immaterial loss on debt extinguishment. On May 15, 2023, the Company repaid the remaining $214.1 million outstanding aggregate principal amount of the 2023 Notes, plus interest, at maturity.

Credit Facilities

In October 2022, the Company entered into a Sixth Amended and Restated Credit Agreement (as amended, the "Credit Agreement") with a revolving credit facility (the "Revolver") of $600.0 million and a maturity date in October 2027, replacing the Fifth Amended and Restated Credit Agreement with a revolving credit facility of $400.0 million and a maturity date in March 2026. The maximum availability under the Revolver can be increased to $850.0 million with bank approval. The Credit Agreement also provides for a delayed draw senior secured term loan facility with a maximum principal amount of $200.0 million (the “Term Loan”). The Term Loan is coterminous with the Revolver. As of May 31, 2023, the Company had no amounts drawn under the Term Loan. The Company's obligations under the Credit Agreement are secured by its North America inventory. The Credit Agreement's capacity includes a $50.0 million sub-limit for the issuance of stand-by letters of credit. The Company had no amounts drawn under the Revolver or the previous revolving credit facility at May 31, 2023 or August 31, 2022. The availability under the Revolver and the previous revolving credit facility, as applicable, was reduced by outstanding stand-by letters of credit of $0.9 million and $1.4 million at May 31, 2023 and August 31, 2022, respectively.

In November 2022, the Company repaid the outstanding principal on its term loan facility (the "Poland Term Loan") through its subsidiary, CMC Poland Sp. z.o.o. ("CMCP"). At May 31, 2023, there was no amount outstanding or available, compared to PLN 152.4 million, or $32.4 million, outstanding and available under the facility as of August 31, 2022.

In May 2023, the Company amended certain terms of its credit facilities in Poland through CMCP, increasing the total credit facilities from PLN 300.0 million, or $63.9 million, at August 31, 2022, to PLN 550.0 million, or $129.9 million, at May 31, 2023. The facilities have expiration dates ranging from August 2024 to April 2026. There were no amounts outstanding under these facilities as of May 31, 2023 or August 31, 2022. 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 $15.9 million and $1.0 million at May 31, 2023 and August 31, 2022, respectively.

Accounts Receivable Facilities

In November 2022, the Company terminated its $150.0 million U.S. trade accounts receivable facility. The Company had no advance payments outstanding under this facility at August 31, 2022.

The Poland accounts receivable facility had a limit of PLN 288.0 million, or $68.0 million and $61.3 million, at May 31, 2023 and August 31, 2022, respectively. The Company had PLN 104.0 million, or $24.6 million, advance payments outstanding under the Poland accounts receivable facility at May 31, 2023, compared to PLN 124.0 million, or $26.4 million, advance payments outstanding at August 31, 2022.