FINANCING ARRANGEMENTS

12 Months Ended

Jun. 30, 2019

The Company's long-term debt consists of the following:



		Interest rate %
		Fiscal Years		June 30,
	Maturity Date	2019	2018	2019		2018
	(fiscal year)			(Dollars in thousands)
Revolving credit facility	2023	3.65%	3.34%	$	90,000	$	90,000

The debt agreements contain covenants, including limitations on incurrence of debt, granting of liens, investments, merger or consolidation, certain restricted payments and transactions with affiliates. In addition, the Company must adhere to specified fixed charge coverage and leverage ratios. The Company was in compliance with all covenants and other requirements of our financing arrangements as of June 30, 2019.

Revolving Credit Facility

As of June 30, 2019 and 2018, the Company had $90.0 million of outstanding borrowings under a $295.0 million revolving credit facility. The unsecured five-year revolving credit facility expires in March 2023 and includes, among other things, a maximum consolidated net leverage ratio covenant, a minimum fixed charge coverage ratio covenant, and certain restrictions on liens, investments and other indebtedness. The revolving credit facility includes a $30.0 million subfacility for the issuance of letters of credit and a $30.0 million sublimit for swingline loans. The Company may request an increase in revolving credit commitments under the facility of up to $150.0 million under certain circumstances. The revolving credit facility has variable interest rates tied to LIBOR plus 1.25% to 1.85% and includes a facility fee of 0.25% to 0.40%. Both the LIBOR credit spread and the facility fee are based on the Company's consolidated net leverage ratio.

In connection with entering into the revolving credit facility, the Company terminated its previous $200.0 million revolving credit facility. As a result of terminating the $200.0 million revolving credit facility, the Company recognized $0.1 million of additional interest expense related to unamortized commitment fees during the fiscal year 2018.

At June 30, 2019, the Company has outstanding standby letters of credit under the Revolving Credit Facility of $21.5 million primarily related to the Company's self-insurance program, therefore, unused available credit under the facility was $183.5 million.

Senior Term Notes

In fiscal year 2018, the Company redeemed all of its 5.5% senior term notes that were due December 2019 (Senior Term Notes) for $124.2 million, which included a $1.2 million premium. The Company utilized $90.0 million under the revolving credit facility and cash on hand of $34.2 million to repay the Senior Term Notes. As a result of redeeming the Senior Term Notes, the Company recorded $1.7 million of additional interest expense related to the unamortized debt discount and debt issuance costs during the fiscal year 2018.

Sale and Leaseback Transactions

In fiscal year 2019, the Company sold its Salt Lake City and Chattanooga Distribution Centers to an unrelated party. The Company is leasing the properties back for 15 years with the option to renew. As the Company plans to lease the property for more than 75% of its economic life, the sales proceeds received from the buyer-lessor are recognized as a financial liability. This financial liability is reduced based on the rental payments made under the lease that are allocated between principal and interest. As of June 30, 2019, the current portion of the Company’s lease liabilities was $0.9 million.

The Company’s long-term lease liability consists of the following:



	Maturity Date	Interest Rate	June 30, 2019		June 30, 2018
	(Fiscal Year)		(Dollars in thousands)
Financial liability - Salt Lake City Distribution Center	2034	3.30%	$	17,354	$	—
Financial liability - Chattanooga Distribution Center	2034	3.70%	11,556		—
Long-term lease liability			$	28,910	$	—

As of June 30, 2019, future lease payments due are as follows:



	Salt Lake City		Chattanooga
2020	$	1,120	$	805
2021	1,157		817
2022	1,171		829
2023	1,186		842
2024	1,200		854
Thereafter	11,952		9,282
Total	$	17,786	$	13,429

The lease liability does not include interest. Future lease payments above are due per the lease agreement and include embedded interest. Therefore, the total payments do not equal the liability.

The Company was in compliance with all covenants and requirements of its financing arrangements as of and during the year ended June 30, 2019.