Long-Term Debt

9 Months Ended

Apr. 30, 2020

The components of long-term debt are as follows:


	April 30, 2020		July 31, 2019
Term loan	$	1,615,216	$	1,832,341
Asset-based credit facility	304,380		—
Unsecured notes	27,190		27,878
Other debt	81,577		94,124
Gross long-term debt	2,028,363		1,954,343
Debt issuance costs, net of amortization	(45,422)		(51,720)
Total long-term debt, net of debt issuance costs	1,982,941		1,902,623
Less: current portion of long-term debt	(16,960)		(17,370)
Total long-term debt, net, less current portion	$	1,965,981	$	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.

As of April 30, 2020, the entire outstanding U.S. term loan tranche balance of $951,784 was subject to a LIBOR-based rate totaling 4.750%, but the interest rate on $715,000 of that balance was fixed at 6.216% through an interest rate swap, dated March 18, 2019, 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, dated March 18, 2019, by swapping the underlying 1-month LIBOR rate for a fixed rate of 2.4660%. The total interest rate on both the April 30, 2020 and July 31, 2019 outstanding Euro term loan tranche balance of $663,432 and $685,373, respectively, was 4.00%. 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 or nine months ended April 30, 2020 or 2019.

As of April 30, 2020, the total interest rate on $250,000 of the outstanding ABL borrowings was 1.75%, and the total interest rate on the remaining ABL borrowings of $54,380 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 April 30, 2020 eligible accounts receivable and inventory balances and net of amounts drawn, totaled approximately $114,000. Due to payments made on the ABL subsequent to the April 30, 2020 quarter end, our unused availability under the ABL was approximately $396,000 as of June 5, 2020.

The unsecured notes of 25,000 Euro ($27,190) relate to long-term debt of EHG. There are two series, 20,000 Euro ($21,752) with an interest rate of 1.945% maturing in March 2025, and 5,000 Euro ($5,438) 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% to 3.43%.

Total contractual gross debt maturities are as follows:


For the remainder of the fiscal year ending July 31, 2020	$	3,888
For the fiscal year ending July 31, 2021	19,043
For the fiscal year ending July 31, 2022	17,758
For the fiscal year ending July 31, 2023	17,872
For the fiscal year ending July 31, 2024	322,367
For the fiscal year ending July 31, 2025 and thereafter	1,647,435
	$	2,028,363

For the three and nine months ended April 30, 2020, interest expense on the term loan, ABL and other debt facilities was $22,825 and $71,037, respectively. 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 $2,679 and $8,050 for the three and nine months ended April 30, 2020, respectively. The unamortized balance of the ABL facility fees was $10,507 at April 30, 2020 and $12,609 as of July 31, 2019 and is included in Other long-term assets in the Condensed Consolidated Balance Sheets.

For both the three and nine months ended April 30, 2019, interest expense on the term loan, ABL and other debt facilities was $32,711. Interest expense for the nine-month period ended April 30, 2019 also included $785 of amortized debt costs on the Company's previous asset-based credit agreement.

The fair value of the Company’s term loan debt at April 30, 2020 and July 31, 2019 was $1,446,627 and $1,806,010, respectively. The carrying value of the Company’s Term loan debt, excluding debt issuance costs, was $1,615,216 and $1,832,341 at April 30, 2020 and July 31, 2019, respectively. The fair value of the Company's debt is primarily estimated using Level 2 inputs as defined by ASC 820, primarily based on quoted market prices for the term loan debt. The fair value of other debt held by the Company approximates fair value.