Long-term Debt and Line of Credit

12 Months Ended

Sep. 30, 2023

Long-Term Debt, Unclassified [Abstract]

On August 9, 2022, the Company and certain of its subsidiaries entered into the Amended and Restated Credit Agreement (the “A&R Credit Facility”) with Truist Bank. The A&R Credit Facility provides for a $65.0 million revolving credit facility (the “A&R Revolving Facility”) that may be used for revolving credit loans (including up to $5.0 million in swingline loans and up to $5.0 million in letters of credit) and a $445.0 million term loan (the “A&R Term Loan”). Subject to certain conditions, the available amount under the revolving credit facility and term loans may be increased by $125.0 million in the aggregate. The A&R Credit Facility bears interest at a rate that is equal to Term SOFR plus an applicable margin ranging from 1.75% to 2.75% based on certain consolidated leverage ratio measures. The A&R Revolving Facility matures on August 9, 2027. The A&R Term Loan is repayable in installments beginning December 31, 2022, with the remainder due on August 9, 2027.

The A&R Credit Facility is collateralized by certain real and personal property (including certain capital stock) of the Company and its subsidiaries. The collateral does not include inventory and certain other assets of the Company’s subsidiaries financed under the Seventh Inventory Financing Facility. The A&R Credit Facility is subject to certain financial covenants related to the maintenance of a minimum fixed charge coverage ratio and a maximum consolidated leverage ratio. The A&R Credit Facility also contains non-financial covenants and restrictive provisions that, among other things, limit the ability of the Company to incur additional debt, transfer or dispose of all of its assets, make certain investments, loans or payments and engage in certain transactions with affiliates. The Company was in compliance with all covenants at September 30, 2023.

Long-term debt consisted of the following at:


($ in thousands)	September 30, 2023		September 30, 2022
Term note payable to Truist Bank, secured and bearing interest at 7.53% at September 30, 2023 and 5.31% at September 30, 2022. The note requires quarterly principal payments commencing on December 31, 2022 and maturing with a full repayment on August 9, 2027	$	428,313	$	445,000
Revolving note payable for an amount up to $65.0 million to Truist Bank, secured and bearing interest at 7.50% at September 30, 2023. The note requires full repayment on August 9, 2027	30,000		—
Notes payable to commercial vehicle lenders secured by the value of the vehicles bearing interest at rates ranging from 0.0% to 10.8% per annum. The notes require monthly installment payments of principal and interest ranging from $100 to $3,100 through September 2028	3,645		4,173
Note payable to Tom George Yacht Group, unsecured and bearing interest at 5.5% per annum. The note requires monthly interest payments, with a balloon payment of principal due on December 1, 2023	2,056		2,056
Note payable to Norfolk Marine Company, unsecured and bearing interest at 4.0% per annum. The note requires quarterly interest payments, with a balloon payment of principal due on December 1, 2024.	1,126		1,126
Total debt outstanding	465,140		452,355
Less current portion (net of current debt issuance costs)	(29,324)		(21,642)
Less unamortized portion of debt issuance costs	(7,377)		(9,551)
Long-term debt, net of current portion and unamortized debt issuance costs	$	428,439	$	421,162

Principal repayment requirements of long-term debt at September 30, 2023 are as follows (in thousands):


Year ending September 30,
2024	$	31,223
2025	35,674
2026	45,278
2027	352,945
2028	20
Total principal payments	$	465,140

Debt issuance costs are amortized on a straight-line basis over the life of the loan, which approximates the effective interest method. During the fiscal year ended 2023, the Company did not capitalize any loan costs. During the fiscal year ended 2022, the Company capitalized loan costs of $9.1 million. In connection with entering into the A&R Credit Facility, the Company wrote off unamortized debt issuance cost of $0.4 million which was included in Loss on extinguishment of debt in the consolidated statements of operations for the year ended September 30, 2022. Amortization for the years ended September 30, 2023, 2022 and 2021 amounted to $2.2 million, $1.3 million and $0.7 million, respectively, and is included in Interest expense - other in the consolidated statements of operations.

As of September 30, 2023 and 2022, the Company had $0.7 million and $0.4 million, respectively, in letters of credit outstanding under the A&R Revolving Facility.