Debt

3 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Debt

9. Debt

On January 31, 2017 the Company entered into a Credit Agreement ("Credit Agreement") and $545,000,000 of new debt facilities ("Facilities") in connection with the STAHL acquisition. The Facilities consist of a Revolving Facility ("Revolver") in the amount of $100,000,000 and a $445,000,000 1st Lien Term Loan ("Term Loan"). The Term Loan has a seven-year term maturing in 2024 and the Revolver has a five-year term maturing in 2022.

During the three months ended June 30, 2020, the Company drew $25,000,000 from the Revolver for liquidity and working capital purposes. The borrowings on the Revolver triggered the debt covenant provision which requires the Total Leverage Ratio not to exceed 3.00:1.00 as of December 31, 2019 and thereafter. As of June 30, 2020, the Company's Total Leverage Ratio was below the allowed maximum, therefore, this Company is in compliance with the provision of the Credit Agreement.

The outstanding principal balance of the Term Loan was $258,238,000 as of June 30, 2020. The Company repaid $1,113,000 of required principal payments on the Term Loan during the three months ended June 30, 2020. The Company is obligated to make $4,450,000 of principal payments over the next 12 months. In response to COVID-19 the Company is seeking to take all appropriate measures to protect the cash flow and liquidity of the Company. As such, only the required principal amount has been recorded within the current portion of long-term debt on the Company's Condensed Consolidated Balance Sheet with the remaining balance recorded as long-term debt.

There were $25,000,000 in outstanding borrowings and $16,730,000 in outstanding letters of credit issued against the Revolver as of June 30, 2020. The $25,000,000 in outstanding borrowings is recorded within the current portion of long term debt on the Company's Condensed Consolidated Balance Sheet as the Company plans to pay down the balance within the next 12 months. The outstanding letters of credit as of June 30, 2020 consisted of $873,000 in commercial letters of credit and $15,857,000 of standby letters of credit.

The gross balance of deferred financing costs on the Term Loan was $14,690,000 as of June 30, 2020 and March 31, 2020. The accumulated amortization balances were $7,170,000 and $6,645,000 as of June 30, 2020 and March 31, 2020, respectively.

The gross balance of deferred financing costs associated with the Revolver is $2,789,000 as of June 30, 2020 and March 31, 2020, which is included in other assets on the Condensed Consolidated Balance Sheet. The accumulated amortization balances were $1,906,000 and $1,766,000 as of June 30, 2020 and March 31, 2020, respectively.

Unsecured and uncommitted lines of credit are available to meet short-term working capital needs for certain of our subsidiaries operating outside of the U.S. The lines of credit are available on an offering basis, meaning that transactions under the line of credit will be on such terms and conditions, including interest rate, maturity, representations, covenants and events of default, as mutually agreed between our subsidiaries and the local bank at the time of each specific transaction. As of June 30, 2020,

unsecured credit lines totaled approximately $2,471,000, of which $0 was drawn. In addition, unsecured lines of $14,450,000 were available for bank guarantees issued in the normal course of business of which $10,553,000 was utilized.

Refer to the Company’s consolidated financial statements included in its 2020 10-K for further information on its debt arrangements.