Indebtedness

3 Months Ended

Jun. 30, 2025

Indebtedness

Indebtedness

Note 17: Indebtedness

Long-term debt consisted of the following:

	Fiscal year
	of maturity		June 30, 2025		March 31, 2025
Revolving credit facility		2028	$	221.0	$	30.0
Term loans		2028		194.4		193.7
5.9% Senior Notes		2029		93.8		100.0
5.8% Senior Notes		2027		16.7		16.7
Finance lease obligations				2.7		2.7
				528.6		343.1
Less: current portion				(45.0)		(44.8)
Less: unamortized debt issuance costs				(1.5)		(1.6)
Total long-term debt			$	482.1	$	296.7

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

Fiscal Year (a)
Remainder of 2026	$	35.8
2027		45.0
2028		421.5
2029		25.5
2030		0.1
2031 & beyond		0.7
Total	$	528.6
____

(a) Amounts reflect scheduled maturity payments as of June 30, 2025. As described below, the Company executed an amended credit agreement in July 2025, which extended the maturity dates for the revolving credit and term loan facilities.

Borrowings under the revolving credit, swingline and term loan facilities bear interest at variable rates, based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below. At June 30, 2025, the weighted-average interest rate for revolving credit facility borrowings and the term loans was 5.8 and 5.3 percent, respectively.

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 June 30, 2025, the Company’s borrowings under its revolving credit facility totaled $221.0 million and domestic letters of credit totaled $6.2 million. As a result, available borrowing capacity under the Company’s revolving credit facility was $47.8 million as of June 30, 2025. At June 30, 2025 and March 31, 2025 the Company had no borrowings under the swingline facility. At March 31, 2025, the Company’s borrowings under its revolving credit facility totaled $30.0 million.

The Company also maintains credit agreements for its foreign subsidiaries. There were no short-term borrowings related to these foreign credit agreements at June 30, 2025. At March 31, 2025, the outstanding short-term borrowings on foreign credit agreements totaled $9.3 million.

In July 2025, the Company executed an amended and restated credit agreement with a syndicate of banks that provides for a multi-currency $400.0 million revolving credit facility and a $200.0 million term loan facility maturing in July 2030.  This credit agreement modified the Company’s then-existing revolving credit and term loan facilities, which would have matured in October 2027.  The Company also amended the agreement governing its Senior Notes to conform the applicable terms to those of the aforementioned amended and restated credit agreement.

Indebtedness under the Company’s credit agreement and Senior Notes is secured by substantially all domestic assets, excluding real estate. These agreements further require compliance with various covenants that may limit the Company’s ability to incur additional indebtedness; grant liens; make investments, loans, or guarantees; engage in certain transactions with affiliates; and make restricted payments, including dividends. In addition, the agreements may require prepayment in the event of certain asset sales.

Financial covenants within the credit agreements include a leverage ratio covenant, which requires the Company to limit the ratio of its consolidated indebtedness, less a portion of its cash balances, both as defined by the credit agreements, to its consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA”). The credit agreements existing as of June 30, 2025 included a leverage ratio covenant of no more than three and one-quarter times. As amended, the credit agreements include a leverage ratio covenant of no more than three and one-half times. The Company must also maintain a ratio of Adjusted EBITDA of at least three times consolidated interest expense. As of June 30, 2025, the Company was in compliance with its debt covenants.

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 June 30, 2025 and March 31, 2025, 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 $112.2 million and $116.6 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.