CREDIT ARRANGEMENTS

9 Months Ended

May 31, 2024

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, 2024	May 31, 2024		August 31, 2023
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
Short-term borrowings	(1)	28,004		8,419
Other	5.100%	11,910		16,042
Finance leases	5.158%	124,512		95,470
Total debt		1,209,486		1,164,991
Less unamortized debt issuance costs		(13,514)		(14,840)
Plus unamortized bond premium		4,501		4,646
Total amounts outstanding		1,200,473		1,154,797
Less current maturities of long-term debt and short-term borrowings		(62,871)		(40,513)
Long-term debt		$	1,137,602	$	1,114,284

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(1) The weighted average interest rate of short-term borrowings as of May 31, 2024 and August 31, 2023 was 6.800% and 7.800%, respectively.

The Company's credit arrangements require compliance with certain covenants, including an interest coverage ratio and a debt to capitalization ratio. At May 31, 2024, the Company was in compliance with all financial covenants in its credit arrangements.

Capitalized interest was $1.3 million and $3.7 million during the three and nine months ended May 31, 2024, respectively, compared to $6.2 million and $16.2 million, respectively, during the corresponding periods.

Credit Facilities

The Company has a Sixth Amended and Restated Credit Agreement (the "Credit Agreement") with a revolving credit facility (the "Revolver") of $600.0 million. The Company had no amounts drawn under the Revolver at May 31, 2024 or August 31, 2023. The availability under the Revolver was reduced by outstanding stand-by letters of credit totaling $0.9 million at each of May 31, 2024 and August 31, 2023. The Credit Agreement also provided for a delayed draw senior secured term loan facility with a maximum principal amount of $200.0 million, which expired undrawn in October 2023, in accordance with its terms.

The Company has credit facilities in Poland through its subsidiary, CMC Poland Sp. z.o.o. ("CMCP"). At May 31, 2024 and August 31, 2023, CMCP's credit facilities totaled PLN 600.0 million, or $152.3 million and $145.4 million, respectively. There were no amounts outstanding under these facilities as of May 31, 2024 or August 31, 2023. 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 $2.3 million and $16.3 million at May 31, 2024 and August 31, 2023, respectively.

Accounts Receivable Facility

The Poland accounts receivable facility had a limit of PLN 288.0 million, or $73.1 million and $69.8 million, at May 31, 2024 and August 31, 2023, respectively. The Company had PLN 110.3 million, or $28.0 million, advance payments outstanding under the Poland accounts receivable facility at May 31, 2024, compared to PLN 34.7 million, or $8.4 million, advance payments outstanding at August 31, 2023.

Other

As of August 31, 2023, the Company had a $2.1 million Qualifying Equity Investment ("QEI") associated with its New Markets Tax Credit ("NMTC") transactions, which was included in current maturities of long-term debt and short-term borrowings in the Company's consolidated balance sheet. The QEI is described in Note 9, New Markets Tax Credit Transactions, to the consolidated financial statements in the 2023 Form 10-K. The Company repaid the outstanding QEI at maturity in March 2024.