Subsequent Event

9 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

Subsequent to the quarter ended March 31, 2023, the Company entered into a second amendment (the "Second Amendment") to its Credit Facility on April 14, 2023. The Second Amendment increases the revolving credit commitment amount under the Credit Facility from $300.0 million to $350.0 million as well as modifies the financial and restrictive covenants under the Company's previous Amendment. Interest on the borrowings under the amended Credit Facility will accrue at variable rates which are determined based upon the calculation of a consolidated net leverage ratio. The applicable margin to be added to Alternative Currency Daily Rate, Alternative Currency Term Rate and Term SOFR determined loans ranges from 1.75 percent to 2.50 percent, and for Base Rate-determined loans, from 0.75 percent to 1.50 percent. The Company will also pay a quarterly commitment fee ranging from 0.250 percent to 0.375 percent, determined based upon the consolidated net leverage ratio, of the unused portion of the commitment under the Credit Facility. In addition, the Company must pay certain letter of credit fees, ranging from 1.75 percent to 2.50 percent, with respect to letters of credit issued under the Credit Facility. The Second Amendment revises the consolidated interest coverage ratio covenant under the Credit Facility to require a minimum interest coverage ratio of 3.00 to 1.00 and requires a consolidated net leverage ratio of no more than 4.00 to 1.00 with a first test date of June 30, 2023, for each. The asset coverage ratio covenant will no longer be required under the Second Amendment. The Second Amendment extends the maturity to April 12, 2028. The Credit Facility discussions in Note 8. Debt pertain to the terms in place as of the current quarter ended March 31, 2023.