Long-Term Debt and Credit Arrangements Long-Term Debt and Credit Arrangements | 6 Months Ended |
Feb. 28, 2014 |
LONG-TERM DEBT AND CREDIT ARRANGEMENTS [Abstract] | ' |
Long-term Debt [Text Block] | ' |
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-4 | LONG-TERM DEBT AND CREDIT ARRANGEMENTS | | | | | | |
The following table summarizes short-term and long-term debt obligations outstanding: |
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| February 28, 2014 | | 31-Aug-13 |
| (In thousands) |
Notes payable and other, due within one year | $ | 7,096 | | | $ | 5,042 | |
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Current portion of long-term debt | 13,476 | | | 3,331 | |
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Short-term debt | $ | 20,572 | | | $ | 8,373 | |
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Revolving credit loan, LIBOR plus applicable spread, due 2016 | $ | — | | | $ | 150,000 | |
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Revolving credit loan, LIBOR plus applicable spread, due 2018 | 57,907 | | | — | |
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Term loan, due 2018 | 185,625 | | | — | |
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Euro notes, 4.485%, due 2016 | 59,099 | | | 56,626 | |
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Capital leases and other long-term debt | 350 | | | 809 | |
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Long-term debt | $ | 302,981 | | | $ | 207,435 | |
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In the first quarter of fiscal 2014, the Company and certain of its wholly-owned subsidiaries entered into an amended and restated Credit Agreement, dated September 24, 2013, and containing a maturity date of September 24, 2018, with JPMorgan Chase Bank, N.A., as administrative agent, J.P. Morgan Europe Limited, as global agent, the lenders named in the Credit Agreement and J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and PNC Capital Markets LLC as lead arrangers ("the Credit Agreement"). The Credit Agreement provides for: |
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• | a multicurrency revolving credit facility in the aggregate principal amount of up to $300 million (the “Revolving Facility"); | | | | | | |
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• | a $200 million term loan facility (the "Term Loan Facility"); and | | | | | | |
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• | an expansion feature allowing the Company to incur, subject to certain terms and conditions, up to an additional $250 million of revolving loans and/or term loans ("the Incremental Facility" and, together with the Revolving Facility and the Term Loan Facility, the "Credit Facility"). | | | | | | |
The Credit Facility is jointly and severally guaranteed by certain material domestic subsidiaries. The Credit Agreement contains certain covenants that, among other things, restrict the Company's ability to incur indebtedness and grant liens other than certain types of permitted indebtedness and permitted liens. The Company is also required to maintain a minimum interest coverage ratio and cannot exceed a maximum net debt leverage ratio. The Company was in compliance with these covenants and does not believe a subsequent covenant violation is reasonably possible as of February 28, 2014. |
Interest rates under the Credit Agreement are based on LIBOR or EURIBOR (depending on the borrowing currency) plus a spread determined by the Company's total leverage ratio. The Company is also required to pay a facility fee on the commitments, whether used or unused. The Revolving Facility provides for a portion of the funds to be made available as a short-term swing-line loan. The swing-line loan interest rate varies based on a mutually agreed upon rate between the bank and the Company. As of February 28, 2014, the amount available under the Credit Facility was reduced by outstanding letters of credit of $1.0 million and borrowings of $253.5 million. Outstanding letters of credit and borrowings as of August 31, 2013 were $1.0 million and $150.0 million, respectively. |
On February 14, 2014, the Company obtained a $15.0 million uncommitted line of credit from Huntington National Bank, available until September 24, 2018. The interest rate is based upon the 30-day LIBOR index that is 10 basis points below the applicable spread on the Revolving Facility, noted above. The Company has no outstanding borrowings under this line of credit as of February 28, 2014. |
On March 1, 2006, the Company issued €50.3 million of senior guaranteed notes in Germany in the private placement market maturing on March 1, 2016, with a fixed interest rate of 4.485% (“Euro Notes”). The carrying value of the Euro Notes approximate €45.3 million, or $62.6 million, as of February 28, 2014. Repayment of the Euro Notes prior to maturity would cost approximately $11.0 million in early termination fees as of February 28, 2014. |
The Euro Notes are guaranteed by certain material domestic subsidiaries and contain covenants similar to those in the Credit Agreement discussed above. The Company was in compliance with its covenants relating to the Euro Notes and does not believe a subsequent covenant violation is reasonably possible as of February 28, 2014. |
Below summarizes the Company’s available funds: |
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| February 28, 2014 | | August 31, 2013 |
| (In thousands) |
Existing capacity: | | | |
Revolving Facility | $ | 300,000 | | | $ | 300,000 | |
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Term Loan Facility | 195,625 | | | — | |
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Domestic short-term lines of credit | 15,000 | | | — | |
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Foreign short-term lines of credit | 61,627 | | | 56,178 | |
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Total capacity from credit lines and notes | $ | 572,252 | | | $ | 356,178 | |
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Availability: | | | |
Revolving Facility | $ | 241,117 | | | $ | 149,024 | |
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Term Loan Facility | — | | | — | |
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Domestic short-term lines of credit | 15,000 | | | — | |
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Foreign short-term lines of credit | 53,251 | | | 49,302 | |
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Total available funds from credit lines and notes | $ | 309,368 | | | $ | 198,326 | |
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Total available funds from credit lines and notes represents the total capacity from credit lines and notes less outstanding borrowings of $261.9 million and $156.9 million as of February 28, 2014 and August 31, 2013, respectively, and issued letters of credit of $1.0 million as of February 28, 2014 and August 31, 2013. |