Short-Term Borrowings and Long-Term Debt

The following table presents the Company’s debt as of September 30, 2017 and June 30, 2017.



	September 30, 2017		June 30, 2017
	(in thousands)
Current portion of long-term debt	$	26	$	—
Revolving credit facility	280,334		91,871
Long-term debt	5,403		5,429
Total debt	$	285,763	$	97,300

Revolving Credit Facility

The Company has a multi-currency senior secured revolving credit facility with JPMorgan Chase Bank N.A., as administrative agent, and a syndicate of banks (the “Amended Credit Agreement”) that is scheduled to mature on April 3, 2022. On August 8, 2017, the Company amended the Amended Credit Agreement to increase the maximum credit facility from $300 million to $400 million. The Amended Credit Agreement allows for the issuance of up to $50 million for letters of credit and has a $200 million accordion feature that allows the Company to increase the availability to $600 million, subject to obtaining additional credit commitments from the lenders participating in the increase.

At the Company's option, loans denominated in U.S. dollars under the Amended Credit Agreement, other than swingline loans, bear interest at a rate equal to a spread over the London Interbank Offered Rate ("LIBOR") or alternate base rate depending upon the Company's ratio of total debt (excluding accounts payable and accrued liabilities), measured as of the end of the most recent quarter, to adjusted earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") for the most recently completed four quarters (the "Leverage Ratio"). This spread ranges from 1.00% to 2.125% for LIBOR-based loans and 0.00% to 1.125% for alternate base rate loans. Additionally, the Company is assessed commitment fees ranging from 0.175% to 0.35%, depending upon the Leverage Ratio, on non-utilized borrowing availability, excluding swingline loans. Borrowings are guaranteed by substantially all of the domestic assets of the Company and a pledge of up to 65% of capital stock or other equity interest in certain foreign subsidiaries determined to be either material or a subsidiary borrower as defined in the Amended Credit Agreement.

At September 30, 2017, the spread in effect was 1.125% for LIBOR-based loans and 0.125% for alternate base rate loans. The commitment fee rate in effect as of September 30, 2017 was 0.175%. The Company was in compliance with all covenants under the credit facility as of September 30, 2017.

The average daily outstanding balance during the three month periods ended September 30, 2017 and 2016 was $218.5 million and $102.3 million, respectively. There was $119.7 million and $208.1 million available for additional borrowings as of September 30, 2017 and June 30, 2017, respectively. There were no letters of credit issued under the multi-currency revolving credit facility as of September 30, 2017 and June 30, 2017.

Long-Term Debt

On August 1, 2007, the Company entered into an agreement with the State of Mississippi to provide financing for the acquisition and installation of certain equipment to be utilized at the Company’s Southaven, Mississippi warehouse, through the issuance of an industrial development revenue bond. The bond matures on September 1, 2032 and accrues interest at the 30-day LIBOR rate plus a spread of 0.85%. The terms of the bond allow for payment of interest only for the first 10 years of the agreement, and then, starting on September 1, 2018 through 2032, principal and interest payments are due until the maturity date or the redemption of the bond. The agreement also provides the bondholder with a put option, exercisable only within 180 days of each fifth anniversary of the agreement, requiring the Company to pay back the bonds at 100% of the principal amount outstanding. As of September 30, 2017, the Company was in compliance with all covenants under this bond. The interest rate at September 30, 2017 and June 30, 2017 was 2.081% and 1.926%, respectively.

Debt Issuance Costs

As of September 30, 2017, net debt issuance costs associated with the credit facility and bond totaled $1.6 million, of which $0.3 million were associated with the August 8, 2017 amendment to the credit facility and are being amortized on a straight-line basis through the maturity date of each respective debt instrument.