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Long-Term Debt
6 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Long-Term Debt

8.Long-term Debt

Long-term debt consists of the following:

 

 

March 31,

2019

 

 

September 30,

2018

 

Series B term loan, net of original issue discount of $2,523 and $2,712 at

   March 31, 2019 and September 30, 2018, respectively (excluding the

   effect of the hedges)

 

$

1,026,700

 

 

$

1,034,288

 

Receivables financing agreement

 

 

150,000

 

 

 

140,000

 

Financing costs, net

 

 

(18,861

)

 

 

(20,046

)

Total debt, net

 

 

1,157,839

 

 

 

1,154,242

 

Less: Current portion of long-term debt

 

 

10,370

 

 

 

12,963

 

Long-term debt, net

 

$

1,147,469

 

 

 

1,141,279

 

 

First Lien credit facility term loans due 2020 and Series B Term Loan due 2025

In connection with the KKR Acquisition, the Company and a group of financial institutions entered into a credit agreement (the “Credit Agreement”) dated December 18, 2013. The Credit Agreement consisted of seven-year $1,460,000 term loans (“First Lien Term Loans”) and a five-year $210,000 revolving credit facility. All amounts outstanding under the Credit Agreement were collateralized by substantially all of the assets of the Company. Debt repayments for the First Lien Term Loans totaled $347,050 for the year ended September 30, 2018 and consisted of $10,950 in contractual repayments per the Credit Agreement and $336,100 in voluntary repayments in connection with the IPO.  

On August 15, 2018, the Company entered into Amendment No. 5 to the Credit Agreement (the “Amended Credit Agreement”). Under the terms of the Amended Credit Agreement, the Credit Agreement was amended to provide for: (i) a $1,037,000 seven-year term loan (the “Series B Term Loan”) and (ii) a $260,000 five-year revolving credit facility.  The Company used the net proceeds from the Series B Term Loan to repay all amounts outstanding under the Company’s First Lien Term Loans. An original discount of $2,775 was incurred when the Series B Term Loan was issued and is being amortized using the effective interest method over the life of the debt, resulting in an effective yield of 2.5%. Debt repayments for the Series B Term Loan consisted of contractual payments per the Credit Agreement and totaled $7,778 for the six month period ended March 31, 2019.

Revolving credit facility

The Company has a five-year $260,000 revolving credit facility (the “Revolving Credit Facility”) that matures on August 15, 2023 and bears interest at a rate per annum of LIBOR plus a margin ranging from 2.00% to 2.50%, with the margin determined based on the Company’s first lien net leverage ratio. The Revolving Credit Facility replaces the previous $210,000 revolving credit facility under the Credit Agreement.  The Company had no outstanding balance under the Revolving Credit Facility as of March 31, 2019 and September 30, 2018.  During the six months ended March 31, 2019, the Company borrowed and fully repaid $10,000 against the revolving credit facility.

Receivables financing agreement

On April 28, 2017, the Company, through a wholly-owned subsidiary, entered into a receivables financing agreement (the “Receivables Financing Agreement”). The Receivables Financing Agreement provided a borrowing capacity of $175,000 through April 27, 2020. On February 21, 2019, the Company entered into the First Amendment to the Receivables Financing Agreement (the "Amendment Agreement") which increased the borrowing capacity to $200,000 and extended the term through February 20, 2022. All amounts outstanding under the Receivables Financing Agreement are collateralized by substantially all of the accounts receivables and unbilled revenue of the Company. During the six months ended March 31, 2019, the Company borrowed $85,000 against the capacity and voluntarily repaid $75,000.

The following are the scheduled maturities of long-term debt, which do not include any estimated excess cash flow payments:

 

 

March 31,

 

2020

 

$

10,370

 

2021

 

 

10,370

 

2022

 

 

160,370

 

2023

 

 

10,370

 

2024 and thereafter

 

 

987,743

 

Total long-term debt

 

 

1,179,223

 

Less: Current maturities

 

 

10,370

 

Less: Original issue discount

 

 

2,523

 

Less: Financing costs

 

 

18,861

 

Total long-term debt, net

 

$

1,147,469

 

 

The Company has estimated the fair value of its long-term debt to be approximately $1,172,789 and $1,182,152 as of March 31, 2019 and September 30, 2018, respectively. Fair value is based on market bid prices around period-end (Level 2 inputs).