Indebtedness

6 Months Ended

Sep. 30, 2021

Indebtedness [Abstract]

Indebtedness

Note 17: Indebtedness

Long-term debt consisted of the following:

_	Fiscal year of maturity	September 30, 2021			March 31, 2021
Term loans	2025	$	171.9		$	178.9
Revolving credit facility	2025		67.2			4.8
5.9% Senior Notes	2029		100.0			100.0
5.8% Senior Notes	2027		50.0			50.0
Other (a)			3.4			3.6
			392.5			337.3
Less: current portion			(21.8	)		(21.9	)
Less: unamortized debt issuance costs			(3.8	)		(4.2	)
Total long-term debt		$	366.9		$	311.2

(a) Other long-term debt primarily includes finance lease obligations.

Long-term debt, including the current portion of long-term debt, matures as follows:

Fiscal Year
Remainder of 2022	$	15.1
2023		21.8
2024		21.8
2025		215.2
2026		33.8
2027 & beyond		84.8
Total	$	392.5

The Company maintains a credit agreement with a syndicate of banks that provides for a multi-currency $250.0 million revolving credit facility expiring in June 2024.  In addition, this credit agreement provides for both U.S. dollar- and euro-denominated term loan facilities and shorter-duration swingline loans.  Borrowings under the revolving credit, swingline and term loan facilities bear interest at a variable rate based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below.  At September 30, 2021, the weighted-average interest rates for revolving credit facility borrowings and the term loans were each 1.6 percent.  Based upon the terms of the credit agreement, the Company classifies borrowings under its revolving credit and swingline facilities as long-term and short-term debt, respectively, on its consolidated balance sheets.

At September 30, 2021, the Company’s revolving credit facility borrowings totaled $67.2 million and domestic letters of credit totaled $5.7 million, resulting in available borrowings under the revolving credit facility of $177.1 million.

The Company also maintains credit agreements for its foreign subsidiaries. The outstanding short-term borrowings related to these foreign credit agreements totaled $15.2 million at September 30, 2021, of which $15.0 million was classified as held for sale.  The $5.0 million of outstanding short-term foreign borrowings at March 31, 2021 were classified as held for sale.  See Note 2 for additional information.

Provisions in the Company’s credit agreement, Senior Note agreements, and various foreign credit agreements require the Company to maintain compliance with various covenants and include certain cross-default clauses.  Under its primary debt agreements in the U.S., the Company has provided liens on substantially all domestic assets.  Also, as specified in the credit agreement, the term loans may require prepayments in the event of certain asset sales.  In addition, at the time of each incremental borrowing under the revolving credit facility, the Company is required to represent to the lenders that there has been no material adverse effect, as defined in the credit agreement, on its business, property, or results of operations.

The leverage ratio covenant requires the Company to limit its consolidated indebtedness, less a portion of its cash balances, both as defined by the credit agreements, to no more than three and one-quarter times consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA”.)  The Company is also subject to an interest expense coverage ratio covenant, which requires the Company to maintain Adjusted EBITDA of at least three times consolidated interest expense.  As of September 30, 2021, the Company was in compliance with its debt covenants; its leverage ratio and interest coverage ratio were 2.5 and 10.1, respectively.

The Company estimates the fair value of long-term debt using discounted future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. As of September 30, 2021 and March 31, 2021, the carrying value of the Company’s long-term debt approximated fair value, with the exception of the Senior Notes, which had an aggregate fair value of $155.1 million and $146.0 million, respectively.  The fair value of the Company’s long-term debt is categorized as Level 2 within the fair value hierarchy.  Refer to Note 4 for the definition of a Level 2 fair value measurement.