Debt

On August 1, 2019, the Company and certain of its subsidiaries entered into an unsecured $200,000 multi-currency revolving loan agreement with a group of five banks that replaced and terminated the Company's previous $300,000 revolving credit agreement that had been entered into on September 25, 2015. Refer to Item 8, Note 16, "Subsequent Events" for information regarding the Company's new revolving loan agreement.

On September 25, 2015, the Company and certain of its subsidiaries entered into an unsecured $300,000 multi-currency revolving loan agreement with a group of six banks. Under this revolving loan agreement, which had a final maturity date of September 25, 2020, the Company had the option to select either a base interest rate (based upon the higher of the federal funds rate plus one-half of 1%, the prime rate of Bank of America plus a margin based on the Company’s consolidated leverage ratio, or the one-month LIBOR rate plus 1%) or a Eurocurrency interest rate (at the LIBOR rate plus a margin based on the Company’s consolidated leverage ratio). At the Company’s option, and subject to certain conditions, the available amount under the revolving loan agreement could have been increased from $300,000 up to $450,000. The maximum amount outstanding on the Company's revolving loan agreement during the fiscal year ended July 31, 2019 was $7,901. As of July 31, 2019, there were no borrowings outstanding on the credit facility. There was $296,729 available for future borrowing under the credit facility, which can be increased to $446,729 at the Company's option, subject to certain conditions. The revolving loan agreement had a final maturity date of September 25, 2020.

On May 13, 2010, the Company completed a private placement of €75,000 aggregate principal amount of senior unsecured notes to accredited institutional investors. The €75,000 of senior notes consisted of €30,000 aggregate principal amount of 3.71% Series 2010-A Senior Notes, which were repaid during fiscal 2017, and €45,000 aggregate principal amount of 4.24% Series 2010-A Senior Notes, due May 13, 2020, with interest payable on the notes semiannually. This private placement was exempt from the registration requirements of the Securities Act of 1933. The notes have been fully and unconditionally guaranteed on an unsecured basis by the Company’s domestic subsidiaries. The borrowing is included in "Current maturities on long-term debt" and "Long-term obligations" in the accompanying Consolidated Balance Sheets as of July 31, 2019 and 2018, respectively.

The Company’s old debt agreements required it to maintain certain financial covenants, including a ratio of debt to the trailing twelve months EBITDA, as defined in the debt agreements, of not more than a 3.25 to 1.0 ratio (leverage ratio) and the trailing twelve months EBITDA to interest expense of not less than a 3.0 to 1.0 ratio (interest expense coverage). The Company’s new debt agreements require it to maintain certain financial covenants, including a ratio of debt to the trailing twelve months EBITDA, as defined in the debt agreements, of not more than a 3.50 to 1.0 ratio (leverage ratio) and the trailing twelve months EBITDA to interest expense of not less than a 3.0 to 1.0 ratio (interest expense coverage). As of July 31, 2019, the Company was in compliance with these financial covenants, with the ratio of debt to EBITDA, as defined by the agreements, equal to 0.3 to 1.0 and the interest expense coverage ratio equal to 71.9 to 1.0.

Total debt consists of the following as of July 31:



	2019		2018
Euro-denominated notes payable in 2020 at a fixed rate of 4.24%	$	50,166	$	52,618

The Company had outstanding letters of credit of $3,271 and $3,043 at July 31, 2019 and 2018, respectively.

The estimated fair value of the Company’s long-term obligations, including current maturities, was $51,566 and $55,707 at July 31, 2019 and 2018, respectively, as compared to the carrying value of $50,166 and $52,618 at July 31, 2019 and 2018, respectively. The fair value of the long-term obligations, which was determined using the market approach based upon the interest rates available to the Company for borrowings with similar terms and maturities, was determined to be Level 2 under the fair value hierarchy.

Maturities on long-term debt are as follows:



Years Ending July 31,
2020	$	50,166
Total	$	50,166