Debt

Long-term debt is comprised of the following at

June 30 (

in thousands):

	2019			2018
Bank credit agreements	$	198,800		$	194,000
Other		-			-
Total funded debt		198,800			194,000
Issuance Cost		(1,190	)		(228	)
Total long-term debt	$	197,610		$	193,772

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

2020	$	-
2021		-
2022		-
2023		-
2024 (matures December 2023)		198,800
Thereafter		-
Funded Debt		198,800
Issuance costs		(1,190	)
Debt, net issuance cost	$	197,610

Bank Credit Agreements

During the

second

quarter of fiscal year

2019,

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

five

-year Credit Facility expires in

December 2023

and has a borrowing limit of

$500

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

$250

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

$10

million sublimit for swing line loans and a

$35

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

$400

million revolving credit agreement, which was scheduled to expire in

December 2019.

Under the terms of the Credit Agreement, we 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 depends 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 increases.

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, 2019,

the Company had the ability to borrow

$253.4

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, 2019.

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

2.75:1.

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

$20

million or

10%

of EBITDA, an increase from the prior agreement’s

$7.5

million cap on restructuring expenses. The new facility continues to allow unlimited non-cash charges including purchase accounting and goodwill adjustments. At

June 30, 2019,

the Company’s Interest Coverage Ratio was

7.73:1.

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.

Under certain circumstances in connection with a Material Acquisitions (as defined in the Facility), the Facility allows for the leverage ratio to go as high as

4.0:1

for a

four

-fiscal quarter period. At

June 30, 2019

the Company’s Leverage Ratio was

1.28:1.

As of

June 30, 2019,

we had borrowings under our facility of

$198.8

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

3.88%.

During the

fourth

quarter of fiscal

2019,

we collected

$106.9

million in connection with the sale of our Cooking Solutions Group and substantially all of these proceeds were used to repay borrowings under our facility. 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

$85.0

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

2.11%.

Other Long-Term Borrowings

June 30, 2019,

and

2018,

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

$7.6

million and

$7.9

million, respectively