Note 9 - Debt

6 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

9)     Debt

Long-term debt is comprised of the following (in thousands):

	December 31, 2020			June 30, 2020
Bank credit agreements	$	200,712		$	200,000
Total funded debt		200,712			200,000
Issuance Cost		(680	)		(850	)
Total long-term debt	$	200,032		$	199,150

Bank Credit Agreements

During the second quarter of fiscal year 2019, the Company entered into a five-year Amended and Restated Credit Agreement (“Credit Facility”, or “facility”). The facility has a borrowing limit of $500 million. The facility 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.

In connection with the acquisition of Renco, the company assumed $0.7 million of debt under the Paycheck Protection Program, within the CARES Act. These borrowings mature in April 2022.

At December 31, 2020, the Company had standby letters of credit outstanding, primarily for insurance purposes, of $6.0 million and had the ability to borrow $202.2 million under the facility. 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.  The facility contains customary representations, warranties and restrictive covenants, as well as specific financial covenants which the Company was compliant with as of  December 31, 2020.  At December 31, 2020, the carrying value of the current borrowings approximate fair value.