Financing Arrangements

3 Months Ended

Aug. 31, 2015

Financing Arrangements

Financing Arrangements

Note 7 — Financing Arrangements

A summary of the carrying amount of our debt is as follows:

	August 31,			May 31,
	2015			2015
Revolving Credit Facility expiring March 24, 2020 with interest payable monthly	$	105.0		$	50.0
Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 with interest payable monthly	25.0			25.0
Note payable due March 9, 2017 with floating interest rate, payable semi-annually on June 1 and December 1	15.0			20.0
Convertible notes payable due March 1, 2016 with interest at 2.25% payable semi-annually on March 1 and September 1	34.5			48.0
Mortgage loan (secured by Wood Dale, Illinois facility) due August 1, 2015	—			11.0
Total debt	179.5			154.0
Current maturities of debt	(44.5		)	(69.0		)
Long-term debt	$	135.0		$	85.0

At August 31, 2015, the carrying value of our 2.25% convertible notes was $34.5 million and the estimated fair value was approximately $35.5 million.  The 2.25% convertible notes are classified as Level 2 in the fair value hierarchy.  This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly.

At August 31, 2015, the remaining variable rate and fixed rate debt had a fair value that approximates the carrying value of $145.0 million.  These debt instruments are classified as Level 3 in the fair value hierarchy which is defined as a fair value determined based upon one or more significant unobservable inputs.

We are subject to a number of covenants under our financing arrangements, including restrictions that relate to the payment of cash dividends, maintenance of debt-to-EBITDA and interest coverage ratios, sales of assets, additional financing, purchase of our shares and other matters.  We are in compliance with all financial and other covenants under our financing arrangements.

Convertible Notes

During the three-month period ended August 31, 2015, we repurchased $14.4 million of our outstanding 2.25% convertible notes due March 1, 2016 for $14.6 million cash including $0.2 million of accrued interest.  We recognized a $0.3 million loss on the early extinguishment of the notes.

The interest expense associated with the convertible notes was as follows:

	Three Months Ended
	August 31,
	2015		2014
Coupon interest	$	0.3	$	0.5
Amortization of deferred financing fees	—		0.1
Amortization of discount	0.6		0.7
Interest expense related to convertible notes	$	0.9	$	1.3