XML 23 R18.htm IDEA: XBRL DOCUMENT v3.24.0.1
Debt
6 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt

Note 9. Debt

 

The Company's outstanding debt as of December 31, 2023 and June 30, 2023, is as follows (in thousands):

 

 

December 31, 2023

 

 

June 30, 2023

 

 

Principal Amount

 

 

Unamortized Debt Costs

 

 

Net Carrying Amount

 

 

Principal Amount

 

 

Unamortized Debt Costs

 

 

Net Carrying Amount

 

3.75% Convertible Senior Notes due 2026

$

100,000

 

 

$

(1,517

)

 

$

98,483

 

 

$

100,000

 

 

$

(1,811

)

 

$

98,189

 

Term Loan Facility

 

67,000

 

 

 

(725

)

 

 

66,275

 

 

 

70,000

 

 

 

(906

)

 

 

69,094

 

Revolving Credit Facility

 

10,000

 

 

 

 

 

 

10,000

 

 

 

10,000

 

 

 

 

 

 

10,000

 

Total debt

$

177,000

 

 

$

(2,242

)

 

$

174,758

 

 

$

180,000

 

 

$

(2,717

)

 

$

177,283

 

Reported as:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term debt

 

 

 

 

 

 

$

6,738

 

 

 

 

 

 

 

 

$

5,721

 

Long-term debt

 

 

 

 

 

 

 

168,020

 

 

 

 

 

 

 

 

 

171,562

 

Total debt

 

 

 

 

 

 

$

174,758

 

 

 

 

 

 

 

 

$

177,283

 

3.75% Convertible Senior Notes due June 2026

In May 2021, the Company issued $100.0 million aggregate principal amount of its 3.75% Convertible Senior Notes due June 2026 (the “3.75% Convertible Notes due 2026”) under an indenture agreement between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. As of December 31, 2023, the if-converted value of its 3.75% Convertible Notes due 2026 did not exceed the outstanding principal amount.

Credit Facilities

The Company has a $40.0 million revolving credit facility (the “Revolving Credit Facility”) and a five-year $80.0 million term loan (the “Term Loan Facility”). In fiscal year 2024, interest on the borrowings under the Credit Facilities is payable in arrears on the applicable interest payment date, at an annual interest rate of reserve-adjusted, 90-day term Secured Overnight Financing Rate (subject to a 0.50% floor) plus a margin between 2.50% and 3.25% margin, determined by the Consolidated Senior Net Leverage Ratio (as defined in the credit agreement governing the Credit Facilities (the “Credit Agreement”)). The weighted average effective interest rate on the Term Loan Facility and Revolving Credit Facility was approximately 8.4% during both the three and six months ended December 31, 2023.

 

The Credit Agreement requires the Company to pay the lenders an unused commitment fee equal to the average unused portion of the Revolving Credit Facility. The Company pays a rate of 0.25% to 0.40% per annum of the average unused portion of the Revolving Credit Facility, determined by the Consolidated Senior Net Leverage Ratio (as defined in the Credit Agreement). If all or a portion of the loans under the Term Loan Facility are prepaid, then the Company will be required to pay a fee equal to 1% of the aggregate amount of the loans so prepaid, subject to certain exceptions.

 

The Credit Agreement contains restrictions and covenants applicable to the Company and its subsidiaries. Among other requirements, the Company may not permit the Fixed Charge Coverage Ratio (as defined in the Credit Agreement) to be less than a certain specified ratio for each fiscal quarter during the term of the Credit Agreement or the consolidated senior net leverage ratio to be greater than a certain specified ratio for each fiscal quarter during the term of the Credit Agreement. As of December 31, 2023, the Company was in compliance with its covenants under the Credit Agreement.

 

A summary of interest expense on the 3.75% Convertible Notes due 2026, the Revolving Credit Facility, and the Term Loan Facility is as follows (in thousands):

 

 

 

Three Months Ended
December 31,

 

 

Six Months Ended
December 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Interest expense related to contractual interest coupon

 

$

2,653

 

 

$

2,362

 

 

$

5,322

 

 

$

4,394

 

Interest expense related to amortization of debt issuance costs

 

 

237

 

 

 

228

 

 

 

475

 

 

 

447

 

Total

 

$

2,890

 

 

$

2,590

 

 

$

5,797

 

 

$

4,841