Indebtedness

6 Months Ended

Sep. 30, 2022

Indebtedness [Abstract]

Indebtedness

Note 16: Indebtedness

As of September 30, 2022 and March 31, 2022, long-term debt consisted of the following:

_	Fiscal year of maturity	September 30, 2022			March 31, 2022
Term loans	2025	$	153.2		$	163.7
Revolving credit facility	2025		61.1			64.9
5.9% Senior Notes	2029		100.0			100.0
5.8% Senior Notes	2027		41.7			41.7
Other (a)			2.6			3.2
			358.6			373.5
Less: current portion			(21.3	)		(21.7	)
Less: unamortized debt issuance costs			(2.9	)		(3.4	)
Total long-term debt		$	334.4		$	348.4

(a) Other long-term debt primarily includes finance lease obligations.

Long-term debt, including the current portion of long-term debt, matures as follows:

Fiscal Year (a)
Remainder of 2023	$	14.8
2024		21.4
2025		204.1
2026		33.7
2027		33.7
2028 & beyond		50.9
Total	$	358.6

(a) Amounts reflect scheduled maturity payments as of September 30, 2022.  As described below, the Company executed an amended credit agreement in October 2022, which extended the maturity dates for the term loan and revolving credit facilities.

The Company maintains a credit agreement that provides for a multi-currency revolving credit facility, U.S. dollar- and euro-denominated term loan facilities, and shorter-duration swingline loans.  Borrowings under the revolving credit, swingline 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 September 30, 2022, the weighted-average interest rates for revolving credit facility borrowings and the term loans were 3.8 and 4.7 percent, respectively.  Based upon the terms of the credit agreement, the Company classifies borrowings under its revolving credit and swingline facilities as long-term and short-term debt, respectively, on its consolidated balance sheets.

In October 2022, the Company executed an amended and restated credit agreement with a syndicate of banks that provides for a multi-currency $275.0 million revolving credit facility and term loan facilities maturing in October 2027.  This credit agreement modified the Company’s then existing $250.0 million revolver and term loan facilities, which would have matured in June 2024.

At September 30, 2022, the Company’s borrowings under its revolving credit and swingline facilities totaled $61.1 million and $5.5 million, respectively, and domestic letters of credit totaled $5.4 million.  As a result, available borrowing capacity under the Company’s revolving credit facility was $178.0 million as of September 30, 2022.  At March 31, 2022, the Company’s borrowings under its revolving credit and swingline facilities totaled $64.9 million and $7.0 million, respectively.

The Company also maintains credit agreements for its foreign subsidiaries.  The outstanding short-term borrowings related to these foreign credit agreements totaled $9.4 million and $0.7 million at September 30, 2022 and March 31, 2022, 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.  Also, as specified in the credit agreement, the term loans may require prepayments in the event of certain asset sales.  In addition, at the time of each incremental borrowing under the revolving credit facility, the Company is required to represent to the lenders that there has been no material adverse effect, as defined in the credit agreement, on its business, property, or results of operations.

The leverage ratio covenant requires the Company to limit its consolidated indebtedness, less a portion of its cash balances, 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 September 30, 2022.

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 September 30, 2022 and March 31, 2022, 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 $130.6 million and $138.9 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.