Subsequent Event - Debt Refinancing (Notes)

3 Months Ended

Feb. 28, 2013

Subsequent Event [Line Items]

Subsequent Events [Text Block]

Subsequent Event

Debt Refinancing

On March 7, 2013, due to lower prevailing interest rates, the Company amended its existing $200 million Term Loan that had a balance of $195.5 million. The amendment extends the facility maturity date to May 2018 and reduces the borrowing spreads. The eurodollar rate is now subject to a floor of 1.25% instead of the previous 1.75% and the applicable margin is now 3.00% instead of the previous 3.75%. The Amended Term Loan retains most of the other provisions of the $200 million Term Loan, including annual principal payments of $2.0 million with the balance to be repaid at maturity. Certain covenants have been removed including eliminating the interest coverage ratio and restrictions on capital spending.

In connection with this refinancing action, the Company incurred approximately $0.9 million in fees of which $0.8 million will be expensed in the second quarter of 2013 as financing expense and the remainder will be recorded as deferred financing fees which will be amortized over the term of the debt. Additionally, $0.4 million of existing deferred financing fees and $0.2 million of existing deferred original issue discount fees will be written-off in the second quarter of 2013. As a result of this refinancing action, the Company anticipates annual interest expense savings of $2.4 million, at current market rates.