XML 50 R16.htm IDEA: XBRL DOCUMENT v3.20.1
Long-Term Debt
6 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Long-Term Debt

8.Long-term Debt

Long-term debt consists of the following:

 

 

 

March 31,

2020

 

 

September 30,

2019

 

Series B term loan

 

$

1,016.7

 

 

$

1,021.7

 

Revolving credit facility

 

 

60.0

 

 

 

 

Receivables financing agreement

 

 

170.0

 

 

 

140.0

 

Financing costs, net

 

 

(15.5

)

 

 

(17.1

)

Total debt, net

 

 

1,231.2

 

 

 

1,144.6

 

Less: Current portion of long-term debt

 

 

10.4

 

 

 

10.4

 

Long-term debt, net

 

$

1,220.8

 

 

$

1,134.2

 

 

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 $1,460.0 term loans (“First Lien Term Loans”) and a five-year $210.0 revolving credit facility. All amounts outstanding under the Credit Agreement were collateralized by substantially all of the assets of the Company.

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 $1,037.0 seven-year term loan (the “Series B Term Loan”) and (ii) a $260.0 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 $2.8 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 $5.2 for the six month period ended March 31, 2020.

Revolving credit facility

The Company has a five-year $260.0 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 $210.0 revolving credit facility under the Credit Agreement. The Company had an outstanding balance under the Revolving Credit Facility of $60.0 as of March 31, 2020. The Company had no outstanding balance under the Revolving Credit Facility as of September 30, 2019.  There were $70.0 borrowings under the facility for the six months ended March 31, 2020, of which, $10.0 were repaid.

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 $175.0 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 $200.0 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, 2020, the Company borrowed $80.0 against the capacity and voluntarily repaid $50.0. During the six months ended March 31, 2019, the Company borrowed $85.0 against the capacity and voluntarily repaid $75.0.

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

 

 

 

March 31,

 

2021

 

$

10.4

 

2022

 

 

180.4

 

2023

 

 

10.4

 

2024

 

 

70.4

 

2025 and thereafter

 

 

977.2

 

Total long-term debt

 

 

1,248.8

 

Less: Current maturities

 

 

10.4

 

Less: Original issue discount

 

 

2.1

 

Less: Financing costs

 

 

15.5

 

Total long-term debt, net

 

$

1,220.8

 

 

The Company has estimated the fair value of its long-term debt to be approximately $1,132.8 and $1,166.6 as of March 31, 2020 and September 30, 2019, respectively. Fair value is based on market bid prices around period-end (Level 2 inputs).