Financing Arrangements

6 Months Ended

Nov. 30, 2017

Financing Arrangements

Financing Arrangements

Note 8 — Financing Arrangements

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

	November 30,			May 31,
	2017			2017
Revolving Credit Facility expiring November 1, 2021 with interest payable monthly	$	168.0		$	131.0
Term loan due November 1, 2021 with interest payable monthly	24.0			—
Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 with interest payable monthly	25.0			25.0
Capital lease obligations	2.4			3.3
Total debt	219.4			159.3
Current maturities of debt	(1.7		)	(2.0		)
Debt issuance costs, net	(1.9		)	(2.0		)
Long-term debt	$	215.8		$	155.3

At November 30, 2017, our variable rate and fixed rate debt had a fair value that approximates the carrying value of $219.4 million and are classified as Level 2 in the fair value hierarchy.

On October 18, 2017, we entered into a Credit Agreement with the Canadian Imperial Bank of Commerce, as lender (the “Credit Agreement”).  The Credit Agreement provided a Canadian $31 million term loan with the proceeds used to fund the acquisition of two maintenance, repair, and overhaul facilities (“MRO”) in Canada from Premier Aviation.  The term loan is due in full at the expiration of the Credit Agreement on November 1, 2021 unless terminated earlier pursuant to the terms of the Credit Agreement.  Interest is payable monthly on the term loan at the offered fluctuating Canadian Dollar Offer Rate plus 125 to 225 basis points based on certain financial measurements if a Bankers’ Acceptances loan, or at the offered fluctuation Prime Rate plus 25 to 125 basis points based on certain financial measurements, if a Prime Rate loan.

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 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 and Credit Agreement also require our significant domestic subsidiaries, and any subsidiaries that guarantee our other indebtedness, to provide a guarantee of payment.  At November 30, 2017, we were in compliance with the financial and other covenants in our financing agreements.