Debt

9 Months Ended

Mar. 31, 2020

The Company maintains a $400.0 million unsecured revolving credit facility (“Credit Agreement”) that extends to March 2022. Interest on the borrowings under the Credit Agreement accrue at variable rates, based upon LIBOR or a defined “Base Rate”. Both are determined based upon the credit rating of the Company’s senior unsecured long-term debt (the “Debt Rating”). The applicable margin to be added to LIBOR ranges from 1.00% to 1.75% (1.25% as of March 31, 2020), and for Base Rate-determined loans, from 0.00% to 0.75% (0.25% as of March 31, 2020). The Company also pays a quarterly commitment fee ranging from 0.125% to 0.400% (0.20% as of March 31, 2020), determined based upon the Debt Rating, of the unused portion of the $400.0 million commitment under the Credit Agreement. In addition, the Company must pay certain letter of credit fees, ranging from 1.00% to 1.75% (1.25% as of March 31, 2020), with respect to letters of credit issued under the Credit Agreement. The Company has the right to voluntarily prepay and re-borrow loans and to terminate or reduce the commitments under the facility. As of March 31, 2020, the Company had $5.9 million of issued letters of credit and $170.0 million of short-term borrowings under the Credit Agreement with the balance of $224.1 million available to the Company. As of March 31, 2020, the borrowing rate for the Credit Agreement was 2.49%.

The Company is subject to certain financial and restrictive covenants under the Credit Agreement, which, among other things, require the maintenance of a minimum interest coverage ratio of 3.50 to 1.00. The interest coverage ratio is defined in the Credit Agreement as, for any period, the ratio of consolidated earnings before interest, taxes, depreciation and amortization and non-cash net pension expense (“EBITDA”) to consolidated interest expense for such period. The Credit Agreement also requires the Company to maintain a debt to capital ratio of less than 55 percent. The debt to capital ratio is defined in the Credit Agreement as the ratio of consolidated indebtedness, as defined therein, to consolidated capitalization, as defined therein. As of March 31, 2020 and June 30, 2019, the Company was in compliance with all of the covenants of the Credit Agreement.

Long-term debt outstanding as of March 31, 2020 and June 30, 2019 consisted of the following:



($ in millions)	March 31, 2020		June 30, 2019
Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at March 31, 2020 and June 30, 2019)	$	252.8	$	251.2
Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at March 31, 2020 and June 30, 2019)	299.6		299.4
Total	552.4		550.6
Less: amounts due within one year	—		—
Long-term debt, net of current portion	$	552.4	$	550.6

For the three months ended March 31, 2020 and 2019, interest costs totaled $7.2 million and $8.4 million, respectively, of which $2.3 million and $1.3 million, respectively, were capitalized as part of the cost of property, plant, equipment and software. For the nine months ended March 31, 2020 and 2019, interest costs totaled $22.1 million and $23.5 million, respectively, of which $6.5 million and $3.2 million, respectively, were capitalized as part of the cost of property, plant, equipment and software.