Long-Term Debt

3 Months Ended

Oct. 31, 2019

The components of long-term debt are as follows:


	October 31, 2019		July 31, 2019
Term loan	$	1,692,337	$	1,832,341
Asset-based credit facility	36,808		—
Unsecured notes	27,885		27,878
Other debt	91,124		94,124
Gross long-term debt	1,848,154		1,954,343
Debt issuance costs, net of amortization	(49,735)		(51,720)
Total long-term debt, net of debt issuance costs	1,798,419		1,902,623
Less: current portion of long-term debt	(18,328)		(17,370)
Total long-term debt, net, less current portion	$	1,780,091	$	1,885,253

On February 1, 2019, the Company entered into a seven-year term loan (“term loan”) agreement, which consists of both a United States Dollar-denominated term loan tranche and a Euro-denominated term loan tranche, and a $750,000 revolving asset-based credit facility (“ABL”). Subject to earlier termination, the term loan matures on February 1, 2026 and the ABL matures on February 1, 2024. See Note 12 to the Consolidated Financial Statements in our Fiscal 2019 Form 10-K for details regarding the term loan and the asset-based facility.

As of October 31, 2019, the entire outstanding U.S. term loan tranche balance of $1,008,502 was subject to a LIBOR-based rate totaling 5.8125%, but the interest rate on $798,200 of that balance was fixed at 6.2160% through an interest rate swap by swapping the underlying 1-month LIBOR rate for a fixed rate of 2.4660%. As of July 31, 2019, the entire outstanding U.S. term loan tranche balance of $1,146,968 was subject to a LIBOR-base rate of 6.1875%, but the interest rate on $849,550 of that balance was fixed at 6.2160% through an interest rate swap by swapping the underlying 1-month LIBOR rate for a fixed rate of 2.4660%. The total interest rate on both the October 31, 2019 and July 31, 2019 outstanding Euro term loan tranche balance of $683,835 and $685,373, respectively, was 4.00%. In addition, the Company must make mandatory prepayments of principal under the term loan agreement upon the occurrence of certain specified events, including certain asset sales, debt issuances and receipt of annual cash flows in excess of certain amounts. No such specified events occurred during the three months ended October 31, 2019.

As of October 31, 2019, the total interest rate on the outstanding ABL borrowings of $36,808 was 1.25%. The ABL also includes a 0.25% unused facility fee. The Company may, generally at its option, pay any borrowings under the ABL, in whole or in part, at any time and from time to time, without premium or penalty.

The unused availability under the ABL is generally available to the Company for general operating purposes and, based on October 31, 2019 eligible accounts receivable and inventory balances, totaled approximately $668,000.

The unsecured notes of 25,000 Euro ($27,885) relate to long-term debt assumed at the closing of the acquisition of EHG. There are two series, 20,000 Euro ($22,308) with an interest rate of 1.945% maturing in March 2025, and 5,000 Euro ($5,577) with an interest rate of 2.534% maturing February 2028. Other debt relates primarily to real estate loans with varying maturity dates through September 2032 and interest rates ranging from 1.40% - 3.43%.

Total contractual gross debt maturities are as follows:


For the remainder of the fiscal year ending July 31, 2020	$	14,252
For the fiscal year ending July 31, 2021	19,528
For the fiscal year ending July 31, 2022	18,245
For the fiscal year ending July 31, 2023	18,363
For the fiscal year ending July 31, 2024	55,252
For the fiscal year ending July 31, 2025 and thereafter	1,722,514
	$	1,848,154

For the three-month period ended October 31, 2019, interest expense on the term loan, ABL and other debt facilities was $24,349. The Company incurred fees to secure the term loan and ABL and those amounts are being amortized ratably over the respective seven and five-year terms of those agreements. The Company recorded total charges related to the amortization of these term loan and ABL fees, which are included in interest expense, of $2,685 for the three-month period ended October 31, 2019. The unamortized balance of the ABL facility fees was $11,909 at October 31, 2019 and $12,609 as of July 31, 2019, and is included in Other long-term assets in the Condensed Consolidated Balance Sheets.

For the three-month period ended October 31, 2018, interest expense on bank debt was $729, and included $393 of amortized debt costs on the Company's previous asset-based credit agreement.

The carrying value of the Company’s long-term debt, excluding debt issuance costs, approximates fair value at October 31, 2019 as the balance is subject to variable market interest rates that the Company believes are market rates for a similarly situated Company. The fair value of the Company's debt is largely estimated using Level 2 inputs as defined by ASC 820.