Debt and Receivables Securitization

3 Months Ended

Aug. 31, 2023

Debt Disclosure [Abstract]

Debt and Receivables Securitization

Note H – Debt and Receivables Securitization

The following table summarizes our long-term debt and short-term borrowings outstanding at August 31, 2023 and May 31, 2023:

	August 31,			May 31,
(In thousands)	2023			2023
Short-term borrowings	$	-		$	2,813
4.60% senior notes due August 10, 2024		150,000			150,000
4.55% senior notes due April 15, 2026		-			243,623
4.30% senior notes due August 1, 2032		200,000			200,000
1.56% Series A senior note due August 23, 2031		39,791			39,226
1.90% Series B senior notes due August 23, 2034		59,634			58,786
Other		401			528
Total debt		449,826			694,976
Unamortized discount and debt issuance costs		(1,475	)		(2,181	)
Total debt, net		448,351			692,795
Less: current maturities and short-term borrowings		150,268			3,077
Total long-term debt	$	298,083		$	689,718

Maturities of long-term debt and short-term borrowings in the current fiscal year and next four fiscal years thereafter, are as follows:

(In thousands)
2024	$	133
2025		150,268
2026		-
2027		-
2028		-
Thereafter		299,425
Total	$	449,826

Long-Term Debt

On April 15, 2014, we issued senior unsecured notes in the principal amount of $250,000, which bear interest at a rate of 4.55% and are scheduled to mature on April 15, 2026 (the “2026 Notes”). During fiscal 2023, we purchased approximately $6,377 of principal amount of the 2026 Notes in open market transactions, leaving $243,623 within long-term debt at May 31, 2023. On June 29, 2023, we notified the trustee under the indenture to which the 2026 Notes are subject that we had elected to redeem in full the 2026 Notes. On July 28, 2023, we redeemed, in full, the 2026 Notes at a price that approximated the par value of the debt of $243,623. In connection with the debt redemption, we recognized a non-cash loss of $1,534 related primarily to unamortized debt issuance costs and amounts deferred in AOCI associated with an interest rate swap executed prior to the issuance of the 2026 Notes.

Other Financing Arrangements

We maintain a $500,000 multi-year revolving credit facility scheduled to mature on August 20, 2026 (the “Credit Facility”) with a group of lenders. Borrowings under the Credit Facility have maturities of up to one year. We have the option to borrow at rates equal to an applicable margin over the Simple SOFR Rate, the Prime Rate of PNC Bank, National Association or the Overnight Bank Funding Rate. The applicable margin is determined by our credit rating. There were no borrowings outstanding under the Credit Facility at August 31, 2023, leaving $500,000 available for future use.

On May 19, 2022, we entered into a 5-year revolving trade accounts receivable securitization facility (“AR Facility”) that allowed for short-term borrowings of up to $175,000 through the factoring and subsequent sale, on a revolving basis, of eligible accounts receivable of certain of our subsidiaries to Worthington Receivables Company, LLC, a wholly-owned, consolidated, bankruptcy-remote indirect subsidiary. On June 29, 2023, we elected to terminate the AR Facility. No early termination or other similar fees or penalties were paid in connection with the termination.