Financing Arrangements

9 Months Ended

Apr. 30, 2020

Our long-term debt consists of the following:


	April 30, 2020		July 31, 2019
Revolving credit loans outstanding	$	399,000	$	43,000
Tranche A term loans outstanding	577,875		190,000
Financing component of interest rate swap⁽¹⁾	8,295		—
Unamortized debt issuance costs	(9,745)		(2,149)
Total long-term debt, net of unamortized debt issuance costs	975,425		230,851
Current portion of long-term debt	(31,414)		(10,000)
Long-term debt, net of unamortized debt issuance costs and excluding current portion	$	944,011	$	220,851

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(1)See Note 8, “Derivatives” for additional information.

On September 6, 2019, we entered into a First Amendment (the “Amendment”), amending our Fourth Amended and Restated Credit Agreement (as amended by the Amendment, the “Amended Credit Agreement”) dated as of June 28, 2018. The Amendment added a $400,000 delayed draw term loan facility (the “Delayed Draw Facility”), in addition to the existing tranche A term loan and existing revolving credit facility. The Delayed Draw Facility and a portion of the revolving credit facility was used to finance a portion of the cash consideration for our acquisition of Hu-Friedy. The remaining proceeds were used to refinance certain existing indebtedness of Cantel and Hu-Friedy, and to pay the fees and expenses incurred in connection therewith, as well as for working capital, capital expenditures and other corporate purposes. Pursuant to the Amended Credit Agreement, subject to the satisfaction of certain conditions precedent, including the consent of the lenders, we may from time to time increase our borrowing capacity under the revolving credit facility by, or incur incremental term loans in, an aggregate

amount not to exceed the sum of (i) the greater of (x) $300,000 or (y) an amount equal to two times the our consolidated EBITDA, calculated on a pro forma basis, plus (ii) the aggregate principal amount of voluntary prepayments of the revolving loans and term loans.

At April 30, 2020, we had $577,875 of term loan A borrowings outstanding and $399,000 of revolver borrowings under the Amended Credit Agreement. The tranche A term loans are subject to principal amortization, with $19,500 due and payable in fiscal 2020, $29,500 due and payable in each of fiscal 2021, 2022, 2023, and 2024, with the remaining $452,500 due and payable at maturity on September 6, 2024. During the nine months ended April 30, 2020, we made principal payments of $12,125.

Borrowings under the Amended Credit Agreement bear interest at rates ranging from 0.00% to 1.25% above prime rate for base rate borrowings, or at rates ranging from 1.00% to 2.25% above the LIBOR, depending upon our “Consolidated Leverage Ratio,” which is the consolidated ratio of total funded debt (minus certain unrestricted cash) to consolidated EBITDA. At April 30, 2020, LIBOR was 0.40% and the margin applicable to our outstanding borrowings were 2.25% above LIBOR. All of our outstanding borrowings were under LIBOR contracts at April 30, 2020. The Amended Credit Agreement also provides for fees on the unused portion of our facility at rates ranging from 0.20% to 0.40%, depending upon our Consolidated Leverage Ratio, which was 0.40% at April 30, 2020. At April 30, 2020, the interest rate on our outstanding borrowings was approximately 2.69%.

On May 11, 2020, we entered into a Second Amendment to the Fourth Amended and Restated Credit Agreement. See Note 16, “Subsequent Events” for additional information.