Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.23.4
Debt
 3 Months Ended
Nov. 30, 2023
Debt Disclosure [Abstract]  
Debt
Note 8. Debt
The following is a summary of the Company’s long-term indebtedness (in thousands):
November 30, 2023 August 31, 2023
Senior Credit Facility
Revolver 47,000  16,000 
Term Loan 198,125  198,750 
Total Senior Indebtedness 245,125  214,750 
Less: Current maturities of long-term debt (4,375) (3,750)
Debt issuance costs (622) (663)
Total long-term debt, less current maturities $ 240,128  $ 210,337 

Senior Credit Facility
On September 9, 2022, the Company refinanced its previous senior credit facility with a new $600 million senior credit facility, comprised of a $400 million revolving line of credit and a $200 million term loan, which will mature in September 2027. The Company has the option to request up to $300 million of additional revolving commitments and/or term loans under the new facility, subject to customary conditions, including the commitment of the participating lenders. This facility replaces LIBOR with adjusted term SOFR as the interest rate benchmark and provides for interest rate margins above adjusted term SOFR ranging from 1.125% to 1.875% per annum depending on the Company’s net leverage ratio. In addition, a non-use fee is payable quarterly on the average unused amount of the revolving line of credit ranging from 0.15% to 0.3% per annum, based on the Company's net leverage. Borrowings under the new facility initially bear interest at adjusted term SOFR plus 1.125% per annum.
The facility contains financial covenants requiring the Company to not permit (i) the net leverage ratio, determined as of the end of each of its fiscal quarters, to exceed 3.75 to 1.00 (or, at the Company’s election and subject to certain conditions, 4.25 to 1.00 for the covenants period during which certain material acquisitions occur and the next succeeding four testing periods) or (ii) the interest coverage ratio, determined as of the end of each of its fiscal quarters, to be less than 3.00 to 1.00. Borrowings under the facility are secured by substantially all personal property assets of the Company and its domestic subsidiary guarantors (other than certain specified excluded assets) and certain of the equity interests of certain subsidiaries of the Company. The Company was in compliance with all covenants under the credit facility at November 30, 2023.
At November 30, 2023, there were $198.1 million in borrowings outstanding under the term loans, $47.0 million in borrowings outstanding under the revolving line of credit and $351.8 million available for borrowing under the revolving line of credit facility after reduction for $1.2 million of outstanding letters of credit issued under the facility.