Debt

6 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

5. Debt

Long-term debt consists of the following:

	March 31, 2022	September 30, 2021
	(dollars in thousands)
Secured Credit Facility Term Loan, due October 2027	1,014,275	1,020,525
Secured Credit Facility Incremental Term Loan, due October 2027	250,000	—
Secured Credit Facility Revolving Loan	31,500	—
Total borrowings	1,295,775	1,020,525
Deferred financing costs	(19,768)	(17,692)
Original issue discount	(11,272)	(5,515)
Total debt	1,264,735	997,318
Less: Current portion of long-term debt and other borrowings	(46,500)	(12,500)
Total long-term debt	1,218,235	984,818

Aggregate maturities of long-term debt as of March 31, 2022, are as follows (dollars in thousands):

Remaining period of 2022	$	7,500
2023	15,000
2024	15,000
2025	15,000
2026	15,000
Thereafter	1,196,775
	$	1,264,275

Incremental Term Loan

On March 2, 2022, the Company exercised its right under the credit facility ("Secured Credit Facility") to borrow $250.0 million of incremental term loans (the “Incremental Term Loan”). In connection with the Incremental Term Loan, the Company paid financing costs totaling $9.7 million, including an original issue discount of $6.3 million. The financing costs and original issue discount were recorded as deferred financing costs in the condensed consolidated balance sheets and are amortized over the remaining life of the Incremental Term Loan.

The Incremental Term Loan matures on October 30, 2027. Principal payments on the Incremental Term Loan will commence on June 30, 2022, and will be payable quarterly at scheduled amounts, with the balance due at maturity. At the Company’s option, the Incremental Term Loan interest rate is based on either (a) Term secured overnight financing rate (“SOFR”) for the applicable interest period (subject to a floor of 0.75%) plus an applicable margin or (b) base rate equal to the highest of (i) the rate of interest publicly announced from time to time by the administrative agent as its “prime rate”, (ii) the federal funds effective rate plus 0.50% and (iii) Term SOFR for an interest period of one month plus 1.00% (subject to a floor of 0.75% per annum), in each case, plus an applicable margin. As of March 31, 2022, the interest rate on the Incremental Term Loan was SOFR plus 4.25%. Interest is payable on the last business day of the month for the relevant interest period selected.

Secured Credit Facility

The Company's Secured Credit Facility includes an initial term loan (“Term Loan”) of $1,250.0 million, an Incremental Term Loan of $250.0 million and a revolving credit facility (“Revolving Loan”) with a maximum commitment of $300.0 million. As of March 31, 2022, the Revolving Loan had borrowings outstanding of $31.5 million and letters of credit issued of $2.1 million leaving $266.4 million of available borrowing capacity.

Covenants

The Secured Credit Facility contains certain restrictive covenants relating to, among other things, limitations on indebtedness, transactions with affiliates, sales of assets, acquisitions and members’ distributions. In addition, above a certain borrowing level, there is a financial covenant relating to the Company’s average leverage ratio. As of March 31, 2022, the Company was in compliance with all covenants in the Secured Credit Facility.