Borrowings

9 Months Ended

Apr. 30, 2020

Debt Disclosure [Abstract]

Borrowings

Borrowings

The Company has a $500.0 million unsecured revolving credit facility that expires July 21, 2022. As of April 30, 2020, there was $142.5 million available on this facility.

In March 2020, the Company borrowed $100.0 million on its revolver as a precautionary measure to strengthen its liquidity position due to uncertainty related to COVID-19.

Certain debt agreements contain financial covenants related to interest coverage and leverage ratios, as well as other non-financial covenants. As of April 30, 2020, the Company was in compliance with all such covenants.

In October 2019, the Company entered into a term loan agreement of €80.0 million, or $89.2 million, based on the exchange rate in effect on October 28, 2019. The loan is unsecured and matures in October 2024. As of April 30, 2020, the Company had borrowed the full capacity of the term loan. The term loan includes customary representations and warranties and covenants for a transaction of this type. The loan has a floating rate based on margin plus EURIBOR. The margin will vary according to a leverage-based pricing grid. The rate as of April 30, 2020 was 0.7%.

On May 18, 2020, the Company entered into a 364-day revolving credit agreement for $100.0 million. The agreement is unsecured, and the Company can request a one-year extension. The agreement provides incremental borrowing capacity above the Company’s currently existing $500.0 million unsecured, revolving credit facility, and includes customary representations and warranties and covenants consistent with that facility. Interest is payable at the Company’s election of either the sum of the LIBOR rate and an applicable rate or the sum of the base rate and an applicable rate, as defined in the agreement.