Debt and Credit Lines

Debt obligations due within the next twelve months consist of the following:



	February 28, 2019		November 30, 2018
	(Dollars in millions)
$350 million Term Loan B, due 2023, current portion (interest at 5.75% and 5.55%, respectively)	$	3.5	$	3.5
Capital lease obligations, current portion	.8		.7
Total	$	4.3	$	4.2

The Company’s long-term debt consists of the following:



	February 28, 2019			November 30, 2018
	(Dollars in millions)
$350 million Term Loan B, due 2023 (interest at 5.75% and 5.55%, respectively)	$	301.3		$	302.1
Senior Secured Revolving Credit Facility, due 2021 (interest at 4.00% and 3.88%, respectively)	11.0			12.0
Capital lease obligations	15.4			15.6
Gross debt	327.7			329.7
Less: current portion	(4.3		)	(4.2		)
Unamortized original issue discount	(2.0		)	(2.1		)
Debt issuance costs	(4.4		)	(4.7		)
Total long-term debt, net of current portion	$	317.0		$	318.7

The weighted-average interest rate on the Company’s short-term debt was 5.71% and 5.70% during the first quarters of 2019 and 2018, respectively.

Term Loan

The Company's $350.0 million Term Loan B ("Term Loan B") matures on August 26, 2023 and is primarily secured by all real property, plant, and equipment of the Company's U.S. facilities and fully and unconditionally and jointly and severally guaranteed by the material U.S. subsidiaries of the Company. The Term Loan B contains affirmative and negative covenants, including a requirement to maintain a net debt leverage ratio of 5.0 to 1.0, limitations on additional debt, certain investments, and acquisitions outside of the Company’s line of business. The Company is in compliance with its Term Loan B covenants as of February 28, 2019.

The Company's Term Loan B has an interest rate of LIBOR plus 3.25% for Eurodollar rate loans and 2.25% for base rate loans. The Term Loan B agreement permits the Company to request additional term loans or incremental equivalent debt borrowings (the “Additional Term Loans”) in a maximum aggregate amount equal to the greater of (a) $120.0 million and (b) an aggregate principal amount such that, on a pro forma basis (giving effect to any Additional Term Loans), the Company’s senior secured net debt leverage ratio will not exceed 4.0 to 1.0.

Senior Secured Revolving Credit Facility

The Company has a Senior Secured Revolving Credit Facility (the "Facility") which matures on August 26, 2021. The Facility is secured by U.S. accounts receivable, inventory, and intangible assets. The Facility contains affirmative and negative covenants, similar to the Term Loan B, including limitations on additional debt, certain investments and acquisitions outside of the Company’s line of business. If the average excess availability of the Facility falls below $25.0 million during any fiscal quarter, the Company must then maintain a fixed charge coverage ratio greater than 1.1 to 1.0 as defined in the agreement. The Company was in compliance with this requirement at February 28, 2019. At February 28, 2019 there was a balance of $11.0 million borrowed under the Facility and the amount available for borrowing under the Facility was $51.7 million.

Eurodollar Revolving Loan

The Company has a €16.0 million Eurodollar Revolving Loan ("Revolver") to provide additional liquidity and working capital flexibility in Europe. The terms of the Revolver are similar to the Company's U.S. Facility, including the maturity date of August 26, 2021. The Revolver contains a €9.0 million expansion feature the Company may exercise in the future to gain additional liquidity should secured collateral of accounts receivable increase. At February 28, 2019 there were no amounts borrowed under the Revolver and the amount available for borrowing under the Revolver was €11.5 million.

Other Debt

The Company has borrowing facilities at certain of its foreign subsidiaries, which consist of overdraft lines, working capital credit lines, and facilities for the issuance of letters of credit and short-term borrowing needs. Total borrowing capacity for these facilities was $10.2 million and $7.0 million as of February 28, 2019 and November 30, 2018, respectively. These facilities support commitments made in the ordinary course of business.

Capital Lease Obligations

At February 28, 2019, the Company had net assets under capital leases totaling $14.5 million, which are included in property, plant, and equipment in the accompanying Consolidated Balance Sheets.

The following is a schedule by year of future minimum lease payments under the Company's capital leases together with the present value of the net future minimum lease payments as of February 28, 2019:



Year Ending November 30:	(Dollars in millions)
2019	$	1.1
2020	1.5
2021	1.5
2022	1.4
2023	1.4
Thereafter	15.2
Total minimum lease payments	22.1
Less: Amount representing estimated executory costs	(.5		)
Net minimum lease payments	21.6
Less: Amount representing interest	(6.2		)
Present value of minimum lease payments	$	15.4

Debt Issuance Costs and Original Issue Discounts

Debt issuance costs and original issue discounts incurred in connection with the issuance of the Company's debt are being amortized over the respective terms of the underlying debt, including any amendments. Total amortization expense of debt issuance costs and original issue discounts is included as a component of interest expense and was $0.4 million and $0.3 million for the three months ended February 28, 2019 and 2018, respectively.

During the quarter ended February 28, 2018, the Company made a $40.0 million prepayment and determined that this constituted a partial extinguishment of debt and as such, wrote-off $0.8 million of debt issuance costs and original issue discounts.