FINANCING ARRANGEMENTS

3 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS:

The Company's debt consists of the following:

	Maturity Date	September 30, 2023	September 30, 2023		June 30, 2023
	(Fiscal Year)	(Interest rate %)	(Dollars in thousands)
Term loan	2026	9.69%	$	172,106	$	172,268
Deferred financing fees			(6,406)		(6,471)
Term loan, net			$	165,700	$	165,797
Revolving credit facility	2026	9.69%	12,000		10,000
Paid-in-kind interest			2,032		1,033
Total long-term debt, net			$	179,732	$	176,830

The Company's credit facility matures in August 2025. In addition to a $10.0 million minimum liquidity covenant, the amended credit agreement includes typical provisions and financial covenants, including minimum EBITDA, leverage and fixed-charge coverage ratio covenants, the latter two of which are not tested until December 31, 2023. The agreement utilizes an interest rate margin that is subject to annual increases. The margin applicable to term secured overnight financing rate (SOFR) loans was 3.875% through March 27, 2023. Effective March 27, 2023, the margin increased to 6.25%, of which 4.25% is paid currently in cash and 2.00% is PIK interest (added to the principal balance and thereafter accruing interest). Effective March 27, 2024, the margin will increase to 7.25%, of which 4.25% will be paid currently in cash and 3.00% will be PIK interest. The margin applicable to base rate loans will be 100 basis points (1.00%) less than the margin applicable to term SOFR loans. Interest expense is recorded based on a weighted average effective interest rate method. The significant assumptions used in the weighted average estimate are the future SOFR rates and debt balance, as well as the length of time the debt will be outstanding. Cash interest paid in the three months ended September 30, 2023 and 2022 was $4.8 and $3.2 million, respectively.

At September 30, 2023, the Company had outstanding standby letters of credit under the revolving credit facility of $9.8 million, primarily related to the Company's self-insurance program. As of September 30, 2023, total liquidity and available credit under the revolving credit facility, as defined by the agreement, were $42.4 and $33.1 million, respectively. As of September 30, 2023, the Company had cash and cash equivalents of $9.3 million and current liabilities of $117.2 million.

The Company was in compliance with its covenants and other requirements of the financing arrangements as of September 30, 2023.