Long-Term Debt

9 Months Ended

Nov. 30, 2021

Debt Disclosure [Abstract]

Long-Term Debt

Note 9 - Long-Term Debt

A summary of our long-term debt follows:

(in thousands)	November 30, 2021		February 28, 2021
Mississippi Business Finance Corporation Loan (the “MBFC Loan”) (1)	$	16,707	$	18,607
Credit Agreement (2)	434,000		329,000
Subtotal	450,707		347,607
Unamortized prepaid financing fees	(3,239)		(3,977)
Total long-term debt	447,468		343,630
Less: current maturities of long-term debt	(1,884)		(1,884)
Long-term debt, excluding current maturities	$	445,584	$	341,746

(1)The MBFC Loan is unsecured and bears floating interest based on either the London Interbank Offered Rate (“LIBOR”) plus a margin of up to 2.0%, or a Base Rate plus a margin of up to 1.0%, as determined by the interest rate elected and the Net Leverage Ratio defined in the loan agreement. The weighted average interest rate on borrowings outstanding was 1.1% at both November 30, 2021 and February 28, 2021.

(2)The Credit Agreement (defined below) is unsecured and bears floating interest at either the Base Rate or LIBOR, plus a margin based on the Net Leverage Ratio (as defined in the Credit Agreement) of 0% to 1.0% and 1.0% to 2.0% for Base Rate and LIBOR borrowings, respectively. These floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement (see Notes 10, 11, and 12 for additional information regarding interest rate swaps). The weighted average interest rate on borrowings outstanding was 1.1% at both November 30, 2021 and February 28, 2021.

Credit Agreement

We have a credit agreement (the "Credit Agreement") with Bank of America, N.A., as administrative agent, and other lenders that provides for an unsecured total revolving commitment of $1.25 billion. As of November 30, 2021, the balance of outstanding letters of credit was $32.7 million and the amount available for borrowings was $783.3 million. Covenants in the Credit Agreement limit the amount of total indebtedness we can incur. As of November 30, 2021, these covenants effectively limited our ability to incur more than $735.8 million of additional debt from all sources, including the Credit Agreement, or $783.3 million in the event a qualified acquisition is consummated.

Debt Covenants

As of November 30, 2021, we were in compliance with all covenants as defined under the terms of the Credit Agreement and our other debt agreements.