Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.22.2
Debt
 9 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Debt Debt
The Company maintains credit facilities to finance acquisitions, to fund the purchase of real estate, construction equipment, plants and other fixed assets, and for general working capital purposes. Debt at June 30, 2022 and September 30, 2021 consisted of the following (in thousands):
June 30, 2022 September 30, 2021
(unaudited)
Long-term debt:
Term Loan $ 250,000  $ 197,500 
Revolving Credit Facility 105,100  20,000 
Total long-term debt 355,100  217,500 
Deferred debt issuance costs (1,427) (1,325)
Current maturities of long-term debt (12,500) (10,000)
Long-term debt, net of current maturities $ 341,173  $ 206,175 
On June 30, 2022, the Company and each of its subsidiaries entered into a Third Amended and Restated Credit Agreement with PNC Bank, National Association, as administrative agent and lender, PNC Capital Markets LLC, as joint lead arranger and sole bookrunner, Regions Bank and BofA Securities, Inc., each as a joint arranger, and certain other lenders (as amended and restated, the “Credit Agreement”). The Credit Agreement provides for (i) a term loan facility in an initial aggregate principal amount of $250.0 million (the “Term Loan”) the full amount of which was drawn at closing, (ii) a revolving credit facility in an initial aggregate principal amount of $325.0 million, (the “Revolving Credit Facility”), and (iii) a delayed draw term loan facility in an initial aggregate principal amount of $50.0 million. Among other things, the proceeds of the Term Loan were used to refinance indebtedness of the Company and its subsidiaries under its prior credit facility.
The Term Loan, inclusive of any incremental borrowings made in the form of a term loan, will amortize in quarterly installments commencing on September 30, 2022 in an amount (subject, in each case, to adjustments for prior mandatory and voluntary prepayments of principal) equal to: (i) 1.25% of the original principal amount of the Term Loan on September 30, 2022 and on each of the following eleven quarter-end payment dates, and (ii) 1.875% of the original principal amount of the Term Loan on each of the next eight quarter-end payment dates. All outstanding advances under the Term Loan and Revolving Credit Facility are due and payable in full on June 30, 2027. The annual interest rates applicable to advances will be calculated, at the Company’s option, by using either a base rate, Daily Simple SOFR plus 0.10%, or Term SOFR plus 0.10%, and in each case, plus an applicable margin percentage that corresponds to the Company’s consolidated net leverage ratio. Subject to various requirements, the Company generally may (and, under certain circumstances, must), prepay all or a portion of the outstanding balance of the advances, together with accrued interest thereon, prior to their contractual maturity. The obligations of the Company and its subsidiaries under the Credit Agreement are secured by a first priority security interest in substantially all of the Company’s assets.