Construction Partners, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Debt

Debt

9 Months Ended

Jun. 30, 2018

Note 9 - Debt

The Company maintains various credit facilities from time to time to finance acquisitions, the purchase of real estate, construction equipment, asphalt plants and other fixed assets, and for general working capital purposes. Debt at June 30, 2018 and September 30, 2017 consisted of the following (in thousands):


	June 30, 2018			September 30, 2017
	(unaudited)
Long-term debt:
Compass Term Loan	$	60,900		$	47,500
Compass Revolving Credit Facility		5,000			10,000
Other long-term debt		1,061			—

Total long-term debt		66,961			57,500
Deferred debt issuance costs		(387	)		(364	)
Current maturities of long-term debt		(14,788	)		(10,000	)

Long-term debt, net of current maturities	$	51,786		$	47,136

Current maturities of debt:
Current maturities of long-term debt	$	14,788		$	10,000

Total current maturities of debt	$	14,788		$	10,000

In connection with the Scruggs Acquisition described in Note 6 – Business Acquisition, the Company amended the Compass Credit Agreement and borrowed an additional $22.0 million under its existing term loan (the “Term Loan”) with Compass Bank, as Agent, Sole Lead Arranger and Sole Bookrunner (as amended, the “Compass Credit Agreement”). The additional borrowing is subject to the same terms and conditions as the Term Loan balance outstanding at September 30, 2017. In connection with this additional Term Loan borrowing, the Company entered into a fair value interest rate swap agreement with a notional amount of $11.0 million under which it pays a fixed percentage rate of 3.01% and receives a credit based on the applicable LIBOR rate.