The Amended Credit Facility allows for up to two temporary increases in the maximum leverage ratio from
3.50x to 4.00x for a four quarter period following an acquisition larger than $250,000. Effective December 7, 2018 through December 28, 2019, the maximum leverage ratio was increased to 4.00x. On December 29, 2019, the maximum
leverage ratio returned to 3.50x.
As of March 31, 2021, the Company had $0 outstanding under the Amended 2017 Revolver and $376,039 under the
Amended 2017 Term Loan.
The current portion of the Amended 2017 Term Loan of $45,579 is classified as long-term debt as the Company expects to refinance
the future quarterly payments with revolver borrowings under the Amended Credit Facility.
Interest Rates on Long Term Debt
The weighted average interest rate on the long term debt at March 31, 2021 and March 31, 2020, was 3.5% and 3.7%, respectively.
Interest Paid
The Company paid in cash, $36,365,
$38,632 and $29,552, net of interest received, for interest during the fiscal years ended March 31, 2021, 2020 and 2019, respectively.
Covenants
The Companys financing
agreements contain various covenants, which, absent prepayment in full of the indebtedness and other obligations, or the receipt of waivers, would limit the Companys ability to conduct certain specified business transactions including
incurring debt, mergers, consolidations or similar transactions, buying or selling assets out of the ordinary course of business, engaging in sale and leaseback transactions, paying dividends and certain other actions. The Company is in compliance
with all such covenants.
Short-Term Debt
As
of March 31, 2021 and 2020, the Company had $34,153 and $46,544, respectively, of short-term borrowings. The weighted-average interest rate on these borrowings was approximately 2% and 3%, respectively, for fiscal years ended March 31,
2021 and 2020.
Letters of Credit
As of
March 31, 2021 and 2020, the Company had $2,959 and $7,720, respectively, of standby letters of credit.
Debt Issuance Costs
In fiscal 2020, the Company capitalized $4,607 of debt issuance costs in connection with the issuance of the 2027 Notes. In fiscal 2019, the Company
capitalized $1,393 in debt issuance costs and wrote off $483 of unamortized debt issuance costs related to the Amended Credit Facility. Amortization expense, relating to debt issuance costs, included in interest expense was $2,072, $1,673, and
$1,316 for the fiscal years ended March 31, 2021, 2020 and 2019, respectively. Debt issuance costs, net of accumulated amortization, totaled $6,421 and $8,493 as of March 31, 2021 and 2020, respectively.
Available Lines of Credit
As of March 31,
2021 and 2020, the Company had available and undrawn, under all its lines of credit, $697,875 and $693,640, respectively, including $122,303 and $105,946, respectively, of uncommitted lines of credit as of March 31, 2021 and March 31,
2020.
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