11. Long-Term Debt

The Company’s debt as of January 31, 2018 and July 31, 2017 consisted of the following:

	January 31,			July 31,
	2018			2017
	(Amounts in thousands)
Senior secured debt:
Term loan, maturing on June 15, 2024, variable interest rates based on LIBOR plus 2.75%, at January 31, 2018	$	344,000		$	540,000
Total debt		344,000			540,000
Current maturities of long-term debt		—			(3,167	)
Unamortized debt issuance costs and original issue discount		(6,952	)		(13,731	)
Long-term debt, net of current maturities	$	337,048		$	523,102

On June 15, 2017, the Company entered into a credit agreement (as amended, the “Credit Agreement”) with KeyBank National Association, as agent, KeyBanc Capital Markets, Inc., HSBC Securities (USA) Inc., and JPMorgan Chase Bank, N.A., as joint lead arrangers and joint bookrunners, the lenders named therein, and ING Capital LLC, as documentation agent. The Credit Agreement provides for a seven year syndicated senior secured term loan of $550.0 million (the “Term Loan”) and a five year senior secured revolving credit facility of $50.0 million (the “Revolving Loan”). On December 19, 2017, the Company entered into an amendment to the Credit Agreement to reduce the interest rate margins applicable to borrowings under the Term Loan and the Revolving Loan.

During the six months ended January 31, 2018, the Company made principal payments totaling $196.0 million on the Term Loan, including $175.7 million paid using the net proceeds from the public offering of the Company’s common stock that closed on October 23, 2017. In conjunction with the amendment to the Credit Agreement and principal payments on the Term Loan, the Company recorded an accelerated amortization of deferred financing costs and original issue discount of $6.1 million as a loss on extinguishment of debt in the Company’s condensed consolidated statements of income. At January 31, 2018, the Company had $344.0 million outstanding under the Term Loan, with up to $46.9 million of additional borrowing capacity under the Revolving Loan after giving effect to a reduction of $3.1 million for outstanding letters of credit.

The Term Loan bears interest at a varying rate of LIBOR plus a margin based on net funded debt to adjusted EBITDA, as calculated in accordance with the Credit Agreement:

Term Loan - Ratio of Net Funded Debt to Adjusted EBITDA	Margin
Greater than 2.5 to 1.0		2.75	%
Less than or equal to 2.5 to 1.0		2.50	%

The Revolving Loan bears interest at a varying rate of LIBOR plus a margin based on net funded debt to adjusted EBITDA, as calculated in accordance with the Credit Agreement:

Revolving Loan - Ratio of Net Funded Debt to Adjusted EBITDA	Margin
Greater than 4.25 to 1.0		2.75	%
Greater than 3.75 to 1.0, but less than or equal to 4.25 to 1.0		2.50	%
Less than 3.75 to 1.0		2.25	%

As of January 31, 2018, the Term Loan bore interest at 4.323% and the Revolving Loan bore interest at 3.823%. There were no outstanding borrowings under the Revolving Loan as of January 31, 2018. The Company also incurs an unused commitment fee on the unused amount of commitments under the Revolving Loan of 0.375%.

Loans under the Credit Agreement are secured by the Company’s assets, including stock in subsidiaries, inventory, accounts receivable, equipment, intangible assets, and real property. The Credit Agreement has restrictive covenants, including a covenant that the Company must maintain a consolidated net leverage ratio between 6.5 to 1.0 through the fiscal quarter ended April 30, 2018, which ratio is reduced each year thereafter by an amount set forth in the Credit Agreement, until the twelve months ended April 30, 2022, following which the Company must maintain a consolidated net leverage ratio below 4.0 to 1.0. As of January 31, 2018, the Company was in compliance with all covenants of the Credit Agreement.