Debt

3 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

Our debt portfolio includes a term loan facility (the “Term Loan Facility”). Interest rates reset every one, three or six months at the discretion of the Company. At September 30, 2023, the Term Loan Facility had an interest rate of Secured Overnight Financing Rate plus 122.5 bps. Additionally, the provisions of the Term Loan Facility allow for prepayments at the Company's discretion. During the three months ended September 30, 2023, we made principal payments totaling $175 million related to the Term Loan Facility. Refer to the Company’s 2023 Annual Report on Form 10-K for further discussion.

Commercial paper notes outstanding at September 30, 2023 and June 30, 2023 were $1.6 billion and $1.8 billion, respectively.

Based on the Company’s rating level at September 30, 2023, the most restrictive financial covenant provides that the ratio of debt to debt-shareholders' equity cannot exceed 0.65 to 1.0. At September 30, 2023, our debt to debt-shareholders' equity ratio was 0.54 to 1.0. We are in compliance, and expect to remain in compliance, with all covenants set forth in the credit agreement and indentures.