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Debt and Receivables Securitization
12 Months Ended
May 31, 2021
Debt Disclosure [Abstract]  
Debt and Receivables Securitization

Note I – Debt and Receivables Securitization

The following table summarizes our long-term debt and short-term borrowings outstanding at May 31, 2021 and 2020:

 

(in thousands)

2021

 

2020

 

1.56% Series A senior notes due August 23, 2031

 

44,871

 

 

40,750

 

1.90% Series B senior notes due August 23, 2034

 

67,245

 

 

61,071

 

4.30% senior notes due August 1, 2032

 

200,000

 

 

200,000

 

4.55% senior notes due April 15, 2026

 

250,000

 

 

250,000

 

4.60% senior notes due August 10, 2024

 

150,000

 

 

150,000

 

Other

 

1,363

 

 

1,239

 

Total debt

 

713,479

 

 

703,060

 

Unamortized discount and debt issuance costs

 

(2,990

)

 

(3,395

)

Total debt, net

 

710,489

 

 

699,665

 

Less: current maturities and short-term borrowings

 

458

 

 

149

 

Total long-term debt

$

710,031

 

$

699,516

 

 

Maturities of long-term debt in the next five fiscal years, and the remaining years thereafter, are as follows:

 

(in thousands)

 

 

 

 

2022

 

$

458

 

2023

 

 

302

 

2024

 

 

302

 

2025

 

 

150,302

 

2026

 

 

-

 

Thereafter

 

 

562,115

 

Total

 

$

713,479

 

 

Long-Term Debt

On August 23, 2019, two of our European subsidiaries issued a €36,700,000 principal amount unsecured 1.56% Series A Senior Note due August 23, 2031 (the “Series A Senior Note”) and €55,000,000 aggregate principal amount of unsecured 1.90% Series B Senior Notes due August 23, 2034 (the “Series B Senior Notes”).  The Series A Senior Note is to be repaid in the principal amount of €30,000,000, together with accrued interest, on August 23, 2029, with the remaining €6,700,000 principal amount payable on August 23, 2031, together with accrued interest.  The Series B Senior Notes are to be repaid in the aggregate principal amount of €23,300,000, together with accrued interest, on August 23, 2031, with the remaining €31,700,000 aggregate principal amount payable on August 23, 2034, together with accrued interest.  Debt issuance costs of $134,000 were incurred in connection with the issuance of the Senior Notes and have been recorded on the consolidated balance sheets within long-term debt as a contra-liability.  They will continue to be amortized, through interest expense, in our consolidated statements of earnings over the term of the respective Senior Notes.  The unamortized portion of the debt issuance costs was $116,000 at May 31, 2021.

The Senior Notes were issued in a private placement and the proceeds thereof were used in the redemption of $150,000,000 aggregate principal amount of unsecured 6.50% senior notes that were set to mature on April 15, 2020 (the “2020 Notes”).  The 2020 Notes were redeemed in full on August 30, 2019.  In connection with the early redemption, the Company recognized a loss on extinguishment of debt of $4,034,000, which was presented separately in our consolidated statement of earnings for fiscal 2020.

On July 28, 2017, we issued $200,000,000 aggregate principal amount of senior unsecured notes due August 1, 2032 (the “2032 Notes”).  The 2032 Notes bear interest at a rate of 4.300%.  The 2032 Notes were sold to the public at 99.901% of the principal amount thereof, to yield 4.309% to maturity.  We used a portion of the net proceeds from the offering to repay amounts then outstanding under our multi-year revolving credit facility and amounts then outstanding under our revolving trade accounts receivable securitization facility, both of which are described in more detail below.  We entered into an interest rate swap in June 2017, in anticipation of the issuance of the 2032 Notes.  The interest rate swap had a notional amount of $150,000,000 to hedge the risk of changes in the semi-annual interest

rate payments attributable to changes in the benchmark interest rate during the several days leading up to the issuance of the 2032 Notes.  Upon pricing of the 2032 Notes, the derivative instrument was settled resulting in a gain of approximately $3,098,000, which was reflected in AOCI.  Approximately $2,116,000 and $198,000 were allocated to debt issuance costs and the debt discount, respectively.  The debt issuance costs and the debt discount have been recorded on the consolidated balance sheets within long-term debt as a contra-liability.  Each will continue to be amortized, through interest expense, in our consolidated statements of earnings over the term of the 2032 Notes.  The unamortized portions of the debt issuance costs and the debt discount were $1,575,000 and $147,000, respectively, at May 31, 2021 and $1,717,000 and $161,000, respectively, at May 31, 2020.

On April 15, 2014, we issued $250,000,000 aggregate principal amount of unsecured senior notes due on April 15, 2026 (the “2026 Notes”).  The 2026 Notes bear interest at a rate of 4.55%.  The 2026 Notes were sold to the public at 99.789% of the principal amount thereof, to yield 4.573% to maturity.  We used a portion of the net proceeds from the offering to repay borrowings then outstanding under our revolving credit facility.  Approximately $3,081,000, $2,279,000 and $528,000 were allocated to the settlement of a derivative contract entered into in anticipation of the issuance of the 2026 Notes, debt issuance costs, and the debt discount, respectively.  The debt issuance costs and the debt discount have been recorded on the consolidated balance sheets within long-term debt as a contra-liability, and the loss on the derivative contract recorded within AOCI.  Each will continue to be amortized, through interest expense, in our consolidated statements of earnings over the term of the 2026 Notes.  The unamortized portions of the debt issuance costs and the debt discount were $918,000 and $212,000, respectively, at May 31, 2021 and $1,108,000 and $256,000, respectively, at May 31, 2020.

On August 10, 2012, we issued $150,000,000 aggregate principal amount of unsecured senior notes due August 10, 2024 (the “2024 Notes”).  The 2024 Notes bear interest at a rate of 4.60%.  The net proceeds from this issuance were used to repay a portion of the then outstanding borrowings under our revolving credit facilities.  Approximately $80,000 of the aggregate proceeds were allocated to debt issuance costs.  The unamortized portion of the debt issuance costs was $21,000 and $28,000 at May 31, 2021 and 2020, respectively.

Other Financing Arrangements

During fiscal 2021, fiscal 2020, and fiscal 2019, we maintained a revolving trade accounts receivable securitization facility (the “AR Facility”).  On July 22, 2020, the Company elected to terminate the AR Facility. Facility fees of $5,500, $132,000 and $202,000 were recognized within interest expense during fiscal 2021, fiscal 2020 and fiscal 2019, respectively.  

We maintain a $500,000,000 multi-year revolving credit facility (the “Credit Facility”) with a group of lenders that matures in February 2023. Debt issuance costs of $805,000 were incurred as a result of the renewal.  These costs have been deferred and are being amortized over the life of the Credit Facility to interest expense.  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 LIBOR, Prime rate or Overnight Bank Funding rate.  The applicable margin is determined by our credit rating.  There were no borrowings outstanding under the Credit Facility at May 31, 2021.  As discussed in “Note G – Guarantees,” we provided $17,350,000 in letters of credit for third-party beneficiaries as of May 31, 2021.  None of these letters of credit were issued against availability under the Credit Facility, leaving $500,000,000 available at May 31, 2021.