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DEBT
 9 Months Ended
May 31, 2024
Debt Disclosure [Abstract]  
DEBT DEBT
Short-term borrowings consist of unsecured lines of credit and short-term overdraft borrowings. The following table summarizes the balances of total facilities, facilities used and facilities available (in thousands):
Facilities Used
Total Amount
of Facilities
Short-term
Borrowings
Letters of
Credit
Facilities
Available
Weighted average
interest rate
May 31, 2024 - Committed$75,000 $— $84 $74,916 — %
May 31, 2024 - Uncommitted96,000 10,078 — 85,922 11.4 
May 31, 2024 - Total$171,000 $10,078 $84 $160,838 — %
August 31, 2023 - Committed$75,000 $— — $75,000 — %
August 31, 2023 - Uncommitted91,000 8,376 — 82,624 13.2 
August 31, 2023 - Overdraft Used (Uncommitted)— 303 — — 12.0 
August 31, 2023 - Total$166,000 $8,679 $— $157,624 12.7 %
As of May 31, 2024 and August 31, 2023, the Company was in compliance with all covenants or amended covenants for each of its short-term facility agreements. These facilities generally expire annually or bi-annually and are normally renewed. One of these facilities is a committed credit agreement with one bank for $75.0 million. In exchange for the bank’s commitment to fund any drawdowns the Company requests, the Company pays an annual commitment fee of 0.25%, payable quarterly, on any unused portion of this facility. Additionally, the Company has uncommitted facilities in most of the countries where it operates, with drawdown requests subject to approval by the individual banks each time a drawdown is requested.
The following table provides the changes in long-term debt for the nine months ended May 31, 2024:
(Amounts in thousands)
Current portion of long-term debt
Long-term debt (net of current portion)
Total
Balances as of August 31, 2023$20,193 $119,487 $139,680 
(1)
Proceeds from long-term debt incurred during the period:
Panama subsidiary
— 16,500 16,500 
Total proceeds from long-term debt incurred during the period— 16,500 16,500 
Repayments of long-term debt:(2,786)(18,647)(21,433)
Reclassifications of long-term debt due in the next 12 months19,231 (19,231)— 
Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar(2)
34 317 351 
Balances as of May 31, 2024$36,672 $98,426 $135,098 
(3)
(1)The carrying amount of non-cash assets assigned as collateral for these loans was $156.2 million. The carrying amount of cash assets assigned as collateral for these loans was $3.5 million.
(2)These foreign currency translation adjustments are recorded within other comprehensive income.
(3)The carrying amount of non-cash assets assigned as collateral for these loans was $135.2 million. The carrying amount of cash assets assigned as collateral for these loans was $2.0 million.
As of May 31, 2024 and August 31, 2023, the Company had approximately $80.1 million and $91.2 million, respectively, of long-term loans held in the U.S. entity and in several foreign subsidiaries, which require these entities to comply with certain annual or quarterly financial covenants, which include debt service and leverage ratios. The Company was in compliance with all covenants or amended covenants for both periods.
The Company entered into a loan agreement in the second quarter of fiscal year 2024 for $16.5 million to partially fund the purchase of our Via Brasil club in Panama. This loan has a term of 15 years and an interest rate of 1.80% plus the 3-month variable Secured Overnight Financing Rate (SOFR). Additionally, the loan includes a 1.00% special interest compensation fund (FECI) surcharge on the outstanding balance. Refer to “Note 2 – Summary of Significant Accounting Policies” for additional information.
Annual maturities of long-term debt are as follows (in thousands):
Twelve Months Ended May 31,Amount
2025$36,672 
202614,881 
202739,122 
202814,410 
20294,411 
Thereafter25,602 
Total$135,098