Debt

Long-term debt is comprised of the following at

June 30 (

in thousands):

	2018			2017
Bank credit agreements	$	194,000		$	192,500
Other		-			6
Total funded debt		194,000			192,506
Issuance Cost		(228	)		(530	)
Total long-term debt	$	193,772		$	191,976

Long-term debt is due as follows (in thousands):

2019	$	-
2020 (matures December 2019)		194,000
2021		-
2022		-
2023		-
Thereafter		-
Funded Debt		194,000
Issuance costs		(228	)
Debt, net issuance cost	$	193,772

Bank Credit Agreements

During fiscal year

2015,

the Company entered into an Amended and Restated Credit Agreement (“Credit Facility”, or “facility”). This

five

-year Credit Facility expires in

December 2019

and has a borrowing limit of

$400

million, which can be increased by an amount of up to

$100

million, in accordance with specified conditions contained in the agreement. The facility also includes a

$10

million sublimit for swing line loans and a

$30

million sublimit for letters of credit. The facility amends and restates a previously existing

$225

million revolving credit agreement, which was scheduled to expire in

January 2017.

Under the terms of the Credit Agreement, we will pay a variable rate of interest and a commitment fee on borrowed amounts as well as a commitment fee on unused amounts under the facility. The amount of the commitment fee will depend upon both the undrawn amount remaining available under the facility and the Company’s funded debt to EBITDA (as defined in the agreement) ratio at the last day of each quarter. As our funded debt to EBITDA ratio increases, the commitment fee will increase.

Funds borrowed under the facility

may

be used for the repayment of debt, working capital, capital expenditures, acquisitions (so long as certain conditions, including a specified funded debt to EBITDA leverage ratio is maintained), and other general corporate purposes. As of

June 30, 2018,

the Company had the ability to borrow

$198.1

million under the facility based on our current EBITDA. The facility contains customary representations, warranties and restrictive covenants, as well as specific financial covenants which the Company was compliant with as of

June 30, 2018.

The Company’s current financial covenants under the facility are as follows:

Interest Coverage Ratio

- The Company is required to maintain a ratio of Earnings Before Interest and Taxes, as Adjusted (“Adjusted EBIT per the Credit Agreement”), to interest expense for the trailing

twelve

months of at least

3.0:1.

Adjusted EBIT per the Credit Agreement specifically excludes extraordinary and certain other defined items such as cash restructuring and acquisition-related charges up to

$7.5

million, and unlimited non-cash charges including gains or losses on sale of property and goodwill adjustments. At

June 30, 2018,

the Company’s Interest Coverage Ratio was

11.40:1.

Leverage Ratio

- The Company’s ratio of funded debt to trailing

twelve

month Adjusted EBITDA per the credit agreement, calculated as Adjusted EBIT per the Credit Agreement plus depreciation and amortization,

may

not

exceed

3.5:1.

June 30, 2018

the Company’s Leverage Ratio was

1.67:1.

As of

June 30, 2018,

we had borrowings under our facility of

$194

million and the effective rate of interest for outstanding borrowings under the facility was

3.29%.

Our primary cash requirements in addition to day-to-day operating needs include interest payments, capital expenditures, and dividends. Our primary sources of cash for these requirements are cash flows from continuing operations and borrowings under the facility.

In order to manage our interest rate exposure, we are party to

$75.0

million of active floating to fixed rate swaps. These swaps convert our interest payments from LIBOR to a weighted average rate of

1.74%.

Other Long-Term Borrowings

June 30, 2018,

and

2017,

the Company had standby letter of credit sub-facility outstanding, primarily for insurance and trade financing purposes of

$7.9

million and

$8.9

million, respectively.