XML 26 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Current And Long-Term Debt
3 Months Ended
Nov. 30, 2013
Debt Disclosure [Abstract]  
Current And Long-Term Debt
3.    Current and Long-Term Debt

Principal Payment

During the first quarter of fiscal 2014, the Company made a scheduled principal payment on its private placement notes in the amount of $16.2 million. The next principal payment of $16.2 million is due in September 2014.

Short-term Borrowings

On November 13, 2013, the Company entered into a new five-year unsecured revolving credit facility with a syndicate of lenders for borrowings of up to $600 million. The credit facility matures on November 13, 2018, and provides for two, one-year extensions requiring lender consent. Any borrowings under the credit facility accrue interest at a variable rate based on short-term market interest rates. The credit facility replaced the Company's previous four-year $400 million unsecured revolving credit facility.

On November 13, 2013, the Company entered into a new four-year unsecured revolving credit facility with a syndicate of lenders for borrowings of up to $300 million. The credit facility matures on November 13, 2017, and provides for two, one-year extensions requiring lender consent. Any borrowings under the credit facility accrue interest at a variable rate based on short-term market interest rates. The credit facility replaced the Company’s previous five-year $300 million unsecured credit facility.

As of November 30, 2013, the Company had $242.0 million of short-term borrowings outstanding under its unsecured revolving credit facilities. During the first quarter of fiscal 2014, the Company had net borrowings of $242.0 million and an average daily outstanding balance of $149.0 million at a weighted-average interest rate of 1.5% under its unsecured revolving credit facilities.

The Company's unsecured revolving credit facilities contain certain restrictive financial covenants, which include a consolidated debt to consolidated capitalization ratio, a fixed charge coverage ratio, and a priority debt to consolidated net worth ratio. As of November 30, 2013, the Company was in compliance with all such covenants. The Company's revolving credit facilities provide the capacity to borrow up to $900 million (less standby letters of credit needed for collateral for its insurance programs of $18.7 million).