Financing Arrangements

3 Months Ended

Aug. 31, 2017

Financing Arrangements

Financing Arrangements

Note 7 — Financing Arrangements

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

	August 31,			May 31,
	2017			2017
Revolving Credit Facility expiring November 1, 2021 with interest payable monthly	$	165.0		$	131.0
Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 with interest payable monthly	25.0			25.0
Capital lease obligations	2.9			3.3
Total debt	192.9			159.3
Current maturities of debt	(2.0		)	(2.0		)
Debt issuance costs, net	(1.9		)	(2.0		)
Long-term debt	$	189.0		$	155.3

At August 31, 2017, our variable rate and fixed rate debt had a fair value that approximates the carrying value of $192.9 million and are classified as Level 2 in the fair value hierarchy.

The industrial revenue bond that matures on August 1, 2018 has been classified as a long-term liability due to our intent and ability to refinance this bond on a long-term basis using our Revolving Credit Facility.

Our financing arrangements also requires us to comply with leverage and interest coverage ratios, maintain a minimum net working capital level, and comply with certain affirmative and negative covenants, including those relating to financial reporting and notification, payment of indebtedness, cash dividends, taxes and other obligations, compliance with applicable laws, and limitations on additional liens, indebtedness, acquisitions, investments and disposition of assets.  The Revolving Credit Facility also requires our significant domestic subsidiaries, and any subsidiaries that guarantee our other indebtedness, to provide a guarantee of payment under the Revolving Credit Facility.  At August 31, 2017, we were in compliance with the financial and other covenants in our financing agreements.