Financing Arrangements

6 Months Ended

Nov. 30, 2018

Note 8 – Financing Arrangements

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


	November 30,		May 31,
	2018		2018
Revolving Credit Facility expiring November 1, 2021 with interest payable monthly	$	197.0	$	130.0
Term loan due November 1, 2021 with interest payable monthly		23.3		23.9
Industrial revenue bond due August 1, 2018		—		25.0
Total debt		220.3		178.9
Debt issuance costs, net		(1.4)		(1.7)
Long-term debt	$	218.9	$	177.2

At November 30, 2018, our variable rate debt had a fair value that approximates its carrying value and is classified as Level 2 in the fair value hierarchy.

The industrial revenue bond was paid on August 1, 2018 using our Revolving Credit Facility.

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 (“MRO”) facilities 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 fluctuating Prime Rate plus 25 to 125 basis points based on certain financial measurements, if a Prime Rate loan.

Our financing arrangements also require 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 November 30, 2018, we were in compliance with the financial and other covenants in our financing agreements.