Financing Arrangements

9 Months Ended

Feb. 29, 2016

Financing Arrangements

Financing Arrangements

Note 9 — Financing Arrangements

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

	February 29,			May 31,
	2016			2015
Revolving Credit Facility expiring March 24, 2020 with interest payable monthly	$	135.0		$	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	10.0			20.0
Convertible notes payable due March 1, 2016 with interest at 2.25% payable semi-annually on March 1 and September 1	25.7			48.0
Mortgage loan (secured by Wood Dale, Illinois facility) due August 1, 2015	—			11.0
Total debt	195.7			154.0
Current maturities of debt	(35.7		)	(69.0		)
Long-term debt	$	160.0		$	85.0

At February 29, 2016, the carrying value of our variable rate and fixed rate debt had a fair value that approximates the carrying value of $195.7 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 and recognized a $0.3 million loss on the early extinguishment of the notes.

During the three-month period ended November 30, 2015, we repurchased $9.7 million of our outstanding 2.25% convertible notes due March 1, 2016 for $9.7 million cash and recognized a $0.1 million loss on the early extinguishment of the notes.

On March 1, 2016, we retired the remaining balance of our 2.25% convertible notes at maturity for $26.0 million cash including accrued interest of $0.3 million.

The interest expense associated with convertible notes was as follows:

	Three Months Ended				Nine Months Ended
	February 29/28,				February 29/28,
	2016		2015		2016		2015
Coupon interest	$	0.2	$	0.3	$	0.6	$	1.2
Amortization of deferred financing fees	—		—		—		0.1
Amortization of discount	0.3		0.4		1.3		1.7
Interest expense related to convertible notes	$	0.5	$	0.7	$	1.9	$	3.0