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Debt
 6 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
Long‑term debt, including accrued interest, consists of the following:
March 31,
2022		September 30,
2021
2021 Term Loan, due April 1, 2028 (1)
$471,438 $473,837 
2021 Revolving Credit Facility, due April 1, 2026 (2)
221,106 37,268 
Securitization Facility, due April 1, 2024 (3)
150,078 150,061 
Equipment Financing, due September 30, 2023 to July 31, 2029, interest rates ranging from 3.13% to 8.07%
102,752 93,375 
Notes Payable, due July 31, 2023 (4)
— 402 
Total debt945,374 754,943 
Less unamortized deferred financing fees(10,812)(11,738)
Total net debt934,562 743,205 
Less current portion(14,219)(12,775)
Total long‑term debt$920,343 $730,430 
(1)The interest rate on the 2021 Term Loan was 2.75% as of March 31, 2022, comprised of 0.25% LIBOR plus the 2.50% spread. Includes accrued interest of $0 and $25 at March 31, 2022 and September 30, 2021, respectively.
(2)The 2021 Revolving Credit Facility includes $187,000 with an interest rate of 2.20% as of March 31, 2022, comprised of 0.25% LIBOR plus the 1.95% spread, and $34,000 with an interest rate of 4.45%. as of March 31, 2022, comprised of 3.50% Prime Rate plus the 0.95% spread. During the three months ended March 31, 2022, the spread on the 2021 Revolving Credit Facility was reduced from 2.25% at September 30, 2021 as a result of a Sustainability Pricing Adjustment per the 2021 Credit Agreement. Includes accrued interest of $106 and $268, at March 31, 2022 and September 30, 2021, respectively.
(3)The interest rate on the Securitization Facility was 1.70% as of March 31, 2022, comprised of 0.45% LIBOR plus the 1.25% spread. Includes accrued interest of $78 and $61 at March 31, 2022 and September 30, 2021, respectively.
(4)In March 2022, the outstanding balance of the Notes Payable due July 31, 2023, was repaid in conjunction with the Company’s acquisition of TWO. See Note 23, “Subsequent Events” for further discussion.
2021 Credit Agreement
On April 1, 2021, EWT III entered into a Credit Agreement (the “2021 Credit Agreement”) among EWT III, as borrower, EWT II, as parent guarantor, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and ING Capital, LLC, as sustainability coordinator. The 2021 Credit Agreement provides for a multi-currency senior secured revolving credit facility in an aggregate principal amount not to exceed the U.S. dollar equivalent of $350,000 (the “2021 Revolving Credit Facility”) and a discounted senior secured term (the “2021 Term Loan”) in the amount of $475,000 (together with the 2021 Revolving Credit Facility, the “Senior Facilities”). The 2021 Credit Agreement also provides for a letter of credit sub-facility not to exceed $60,000.

The 2021 Credit Agreement contains customary representations, warranties, affirmative covenants, and negative covenants, including, among other things, a springing maximum first lien leverage ratio of 5.55 to 1.00. The Company did not exceed this ratio during the six months ended March 31, 2022, does not anticipate exceeding this ratio during the year ending September 30, 2022, and therefore does not anticipate any additional repayments during the year ending September 30, 2022.
The following table summarizes the amount of the Company’s outstanding borrowings and outstanding letters of credit under the 2021 Revolving Credit Facility as of March 31, 2022 and September 30, 2021.
March 31,
2022		September 30,
2021
Borrowing availability$350,000 $350,000 
Outstanding borrowings221,000 37,000 
Outstanding letters of credit9,604 10,112 
Unused amounts$119,396 $302,888 
Receivables Securitization Program
On April 1, 2021, Evoqua Finance LLC (“Evoqua Finance”), an indirect wholly-owned subsidiary of the Company, entered into an accounts receivable securitization program (the “Receivables Securitization Program”) consisting of, among other agreements, (i) a Receivables Financing Agreement (the “Receivables Financing Agreement”) among Evoqua Finance, as the borrower, the lenders from time to time party thereto (the “Receivables Financing Lenders”), PNC Bank, National Association (“PNC Bank”), as administrative agent, EWT LLC, as initial servicer, and PNC Capital Markets LLC (“PNC Markets”), as structuring agent, pursuant to which the lenders have made available to Evoqua Finance a receivables finance facility (the “Securitization Facility”) in an amount up to $150,000 and (ii) a Sale and Contribution Agreement (the “Sale Agreement”) among Evoqua Finance, as purchaser, EWT LLC, as initial servicer and as an originator, and Neptune Benson, Inc., an indirectly wholly-owned subsidiary of the Company, as an originator (together with EWT LLC, the “Originators”).
The Receivables Securitization Program contains certain customary representations, warranties, affirmative covenants, and negative covenants, subject to certain cure periods in some cases, including the eligibility of the Receivables being sold by the Originators and securing the loans made by the Receivables Financing Lenders, as well as customary reserve requirements, events of default, termination events, and servicer defaults. The Company was in compliance with all covenants during the six months ended March 31, 2022, does not anticipate becoming noncompliant during the year ending September 30, 2022, and therefore, subject to limitations arising from collateral availability, does not anticipate any additional repayments during the year ending September 30, 2022.
Equipment Financings
During the six months ended March 31, 2022, the Company completed the following equipment financings:
Date EnteredDueInterest Rate at March 31, 2022Principal Amount
March 18, 2022March 17, 20294.67 %$1,839 
March 16, 2022
July 31, 2029(1)
4.75 %1,317 
March 15, 2022April 1, 20294.74 %4,788 
December 30, 2021December 30, 20283.94 %2,207 
December 23, 2021
July 31, 2029(1)
4.75 %3,742 
$13,893 
(1)    Represents an advance received from the lender on a multiple draw term loan in which the Company is making interest only payments through August 1, 2022 based on a 1.00% LIBOR floor plus a 3.75% spread. The Company entered into an interest rate swap with an effective date of August 1, 2022 to mitigate risk associated with this variable rate equipment financing, see Note 12, “Derivative Financial Instruments” for further discussion.
Deferred Financing Fees and Discounts
Deferred financing fees and discounts related to the Company’s long-term debt were included as a contra liability to debt on the Consolidated Balance Sheets as follows:
March 31,
2022		September 30,
2021
Current portion of deferred financing fees and discounts(1)
$(1,883)$(1,866)
Long-term portion of deferred financing fees and discounts(2)
(8,929)(9,872)
Total deferred financing fees and discounts$(10,812)$(11,738)
(1)Included in Current portion of debt, net of deferred financing fees and discounts on the Consolidated Balance Sheets.
(2)Included in Long-term debt, net of deferred financing fees and discounts on the Consolidated Balance Sheets.
Amortization of deferred financing fees and discounts included in interest expense was $459 and $518 for the three months ended March 31, 2022 and 2021 and $926 and $1,044 for the six months ended March 31, 2022 and 2021, respectively.
Repayment Schedule
Aggregate maturities of all long‑term debt, including current portion of long‑term debt and excluding finance lease obligations as of March 31, 2022, are presented below:
Fiscal Year
Remainder of 2022$7,886 
202316,748 
2024165,512 
202517,100 
202620,417 
Thereafter
717,711 
Total
$945,374