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Debt
12 Months Ended
Sep. 30, 2023
Debt  
Debt

6.      Debt

Debt consists of the following at September 30, 2023 and 2022:

(Dollars in thousands)

    

2023

    

2022

Total borrowings

$

102,000

 

153,000

Current portion of long-term debt and short-term borrowings

 

(20,000)

 

(20,000)

Total long-term debt, less current portion

$

82,000

 

133,000

On August 30, 2023, the Company entered into a new five-year credit facility (“the Credit Facility"), replacing its previous credit facility which would have matured September 27, 2024. The Credit Facility includes a $500 million revolving line of credit as well as provisions allowing for the increase of the credit facility commitment amount by an additional $250 million, if necessary, with the consent of the lenders. The bank syndication supporting the facility is comprised of a diverse group of seven banks led by JP Morgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and Commerce Bank and TD Bank, N.A. as co-documentation agents. The Credit Facility matures August 30, 2028, with balance due by this date.

Interest on borrowings under the Credit Facility is calculated at a spread over either an Adjusted Term SOFR Rate, Adjusted EURIBOR Rate, Adjusted CDOR Rate, Alternate Base Rate or Daily Simple RFR, at the Company’s election. The Credit Facility also requires a facility fee ranging from 12.5 to 25 basis points per annum on the unused portion. The interest rate spreads and the facility fee are subject to increase or decrease depending on the Company’s leverage ratio.

The Credit Facility is secured by the unlimited guaranty of our direct and indirect material U.S. subsidiaries and the pledge of 100% of the equity interests of our direct and indirect material foreign subsidiaries. The financial covenants of the Credit Facility include a leverage ratio and an interest coverage ratio. As of September 30, 2023, we were in compliance with all covenants.

At September 30, 2023, we had approximately $390 million available to borrow under the Credit Facility, plus the $250 million increase option subject to the lenders’ consent, in addition to $41.9 million cash on hand. We classified $20 million as the current portion of long-term debt as of September 30, 2023, as we intend to repay this amount within the next twelve months; however, we have no contractual obligation to repay such amount during the next twelve months.

During 2023 and 2022, our maximum aggregate short-term borrowings at any month-end were $161 million and $208 million, respectively, and the average aggregate short-term borrowings outstanding based on month-end balances were $140.3 million and $189.8 million, respectively. The weighted average interest rates were 5.82% and 2.11% for 2023 and 2022, respectively. As of September 30, 2023, the interest rate on our debt was 6.81%. The letters of credit issued and outstanding under the Credit Facility totaled $8.3 million and $8.0 million at September 30, 2023 and 2022, respectively.