Quarterly report pursuant to Section 13 or 15(d)

Debt

v2.4.0.8
Debt
 3 Months Ended
Nov. 30, 2013
Debt Disclosure [Abstract]  
Debt
Debt
The following is a summary of the Company’s long-term indebtedness (in thousands):
 
 
November 30,
2013
 
August 31,
2013
Senior Credit Facility
 
 
 
 
Revolver
 
$
113,000

 
$
125,000

Term Loan
 
90,000

 
90,000

 
 
203,000

 
215,000

5.625% Senior Notes
 
300,000

 
300,000

Total Senior Indebtedness
 
503,000

 
515,000

Less: current maturities of long-term debt
 
(1,125
)
 
—

Total long-term debt, less current maturities
 
$
501,875

 
$
515,000


The Company’s Senior Credit Facility, which matures on July 18, 2018, includes a $600 million revolving credit facility, a $90 million term loan and a $350 million expansion option, subject to certain conditions. Borrowings are subject to a pricing grid, which can result in increases or decreases to the borrowing spread above LIBOR, depending on the Company’s leverage ratio, ranging from 1.00% to 2.50% in the case of loans bearing interest at LIBOR and from 0.00% to 1.50% in the case of loans bearing interest at the base rate. At November 30, 2013, the borrowing spread on LIBOR based borrowings was 1.50% (aggregating to approximately 1.70%). In addition, a non-use fee is payable quarterly on the average unused credit line under the revolver ranging from 0.15% to 0.40% per annum. At November 30, 2013, the available and unused credit line under the revolver was $483.0 million. Quarterly principal payments of $1.1 million will begin on the term loan on September 30, 2014, increasing to $2.3 million per quarter beginning on September 30, 2015, with the remaining principal due at maturity. The Senior Credit Facility, which is secured by substantially all of the Company’s domestic personal property assets, also contains customary limits and restrictions concerning investments, sales of assets, liens on assets, dividends and other payments. The two financial covenants included in the Senior Credit Facility agreement are a maximum leverage ratio of 3.75:1 and a minimum interest coverage ratio of 3.50:1. The Company was in compliance with all financial covenants at November 30, 2013.
On April 16, 2012, the Company issued $300 million of 5.625% Senior Notes due 2022 (the “Senior Notes”). The Senior Notes require no principal installments prior to their June 15, 2022 maturity, require semiannual interest payments in December and June of each year and contain certain financial and non-financial covenants.