Indebtedness

3 Months Ended

Jun. 30, 2019

Note 16: Indebtedness

In June 2019, the Company executed an amended and restated credit agreement with a syndicate of banks that provides for a multi-currency $250.0 million revolving credit facility expiring in June 2024, which modified the Company’s then-existing revolver that would have expired in November 2021. As a result of the credit agreement modification, the Company deferred debt issuance costs of $1.1 million, which will be amortized over the term of the debt. In addition, this credit agreement provides for both U.S. dollar- and euro-denominated term loan facilities. At June 30, 2019, the Company’s term loan borrowings totaled $200.5 million, with repayments beginning in the second quarter of fiscal 2020 and continuing through fiscal 2025. These term loans replaced the previously-existing term loans with repayments scheduled through fiscal 2022. Borrowings under both the revolving credit and term loan facilities bear interest at a variable rate, based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below. At June 30, 2019, the weighted-average interest rates for revolving credit facility borrowings and the term loans were 3.8 percent and 3.4 percent, respectively.

Long-term debt consisted of the following:

	Fiscal year of maturity		June 30, 2019			March 31, 2019
Term loans	2025		$	200.5		$	238.4
6.8% Senior Notes	2021			81.0			85.0
5.8% Senior Notes	2027			50.0			50.0
Other (a)		-		8.1			14.3
				339.6			387.7
Less: current portion				(33.5	)		(48.6	)
Less: unamortized debt issuance costs				(3.9	)		(4.0	)
Total long-term debt			$	302.2		$	335.1

(a)	Other long-term debt primarily includes borrowings by foreign subsidiaries and finance lease obligations.

Fiscal Year
Remainder of 2020	$	24.0
2021		84.7
2022		21.7
2023		21.7
2024		21.7
2025 & beyond		165.8
Total	$	339.6

As of June 30, 2019 and March 31, 2019, the Company reported its revolving credit facility borrowings of $101.6 million and $47.1 million, respectively, as short-term debt on the consolidated balance sheets. At June 30, 2019, domestic letters of credit totaled $5.3 million, resulting in available borrowings under the Company’s revolving credit facility of $143.1 million. The Company also maintains credit agreements for its foreign subsidiaries, with outstanding short-term borrowings at June 30, 2019 and March 31, 2019 of $19.9 million and $18.9 million, respectively.

Provisions in the Company’s credit agreement, Senior Note agreements, and various foreign credit agreements require the Company to maintain compliance with various covenants and include certain cross-default clauses. Under its primary debt agreements in the U.S., the Company has provided liens on substantially all domestic assets. In addition, as specified in the credit agreement, the term loans may require prepayments in the event of certain asset sales. The Company is also subject to a leverage ratio covenant, which requires the Company to limit its consolidated indebtedness, less a portion of its cash balance, both as defined by the credit agreements, to no more than three and one-quarter times consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA”). The Company is also subject to an interest expense coverage ratio covenant, which requires the Company to maintain Adjusted EBITDA of at least three times consolidated interest expense. The Company was in compliance with its debt covenants as of June 30, 2019.

The Company estimates the fair value of long-term debt using discounted future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. As of June 30, 2019 and March 31, 2019, the carrying value of the Company’s long-term debt approximated fair value, with the exception of the Senior Notes, which had an aggregate fair value of approximately $134.0 million and $137.2 million, respectively. The fair value of the Company’s long-term debt is categorized as Level 2 within the fair value hierarchy. Refer to Note 3 for the definition of a Level 2 fair value measurement.