Debt

3 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Debt Disclosure

Debt

The following table represents our debt at carrying value at December 31, 2024 and September 30, 2024:

	December 31, 2024		September 30, 2024
	(In thousands)
Current maturities on debt:
The $300 Million Term Loan	15,000		15,000
Long-term debt:
Revolving line of credit	425,000		210,000
The $300 Million Term Loan	240,000		243,750
The $450 Million Term Loan	450,000		450,000
The 2018 Senior Notes	400,000		400,000
The 2019 Senior Notes and the 2021 Senior Notes	900,000		900,000
Less: debt issuance costs	(8,900)		(9,729)
Long-term debt	2,406,100		2,194,021
Total debt	$	2,421,100	$	2,209,021

Revolving Line of Credit and Term Loans

We have a $600 million unsecured revolving line of credit, a $300 million unsecured term loan (the “$300 Million Term Loan”), and a $450 million unsecured term loan (the “$450 Million Term Loan”) with a syndicate of banks that mature on August 19, 2026. Borrowings under the revolving line of credit and the term loans can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of our common stock. The $300 Million Term Loan requires principal payments in consecutive quarterly installments of $3.75 million on the last business day of each quarter. We have no obligation to make scheduled principal payments on the $450 Million Term Loan prior to the maturity date, but may prepay the $450 Million Term Loan, without premium or penalty, in whole or in part. Interest rates on amounts borrowed under the revolving line of credit and the term loans are based on (i) an adjusted base rate, which is the greatest of (a) the prime rate, (b) the Federal Funds rate plus 0.5%, and (c) one-month adjusted term Secured Overnight Financing Rate (“SOFR”) plus 1%, plus, in each case, an applicable margin, or (ii) an adjusted term SOFR plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement). Adjusted term SOFR is defined as term SOFR for the relevant interest period plus a SOFR adjustment of 0.10% per annum. The applicable margin for base rate borrowings and for SOFR borrowings is determined based on our consolidated leverage ratio. The applicable margin for base rate borrowings ranges from 0% to 0.75% per annum and for SOFR borrowings ranges from 1% to 1.75% per annum. In addition, we must pay certain credit facility fees. The revolving line of credit and the term loans contain certain restrictive covenants including a maximum consolidated leverage ratio of 3.5 to 1.0, subject to a step up to 4.0 to 1.0 following certain permitted acquisitions and subject to certain conditions, and a minimum interest coverage ratio of 3.0 to 1.0. The credit agreement also contains other covenants typical of unsecured credit facilities.

As of December 31, 2024, we had $425.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 5.762%, $255.0 million in outstanding balance of the $300 Million Term Loan at an interest rate of 5.794%, and $450.0 million in outstanding balance of the $450 Million Term Loan at an interest rate of 5.745%. We were in compliance with all financial covenants under the credit agreement as of December 31, 2024.

Senior Notes

On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes require interest payments semi-annually at a rate of 5.25% per annum and will mature on May 15, 2026.

On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028.

On December 17, 2021, we issued $550 million of additional senior notes of the same class as the 2019 Senior Notes in a private offering to qualified institutional investors (the “2021 Senior Notes,” and collectively with the 2018 Senior Notes and the 2019 Senior Notes, the “Senior Notes”). The 2021 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028, the same date as the 2019 Senior Notes.

The indentures for the Senior Notes contain certain covenants typical of unsecured obligations and we were in compliance as of December 31, 2024.

The following table presents the face values and fair values for the Senior Notes at December 31, 2024 and September 30, 2024:

	December 31, 2024				September 30, 2024
	Face Value		Fair Value		Face Value		Fair Value
	(In thousands)
The 2018 Senior Notes	$	400,000	$	398,000	$	400,000	$	399,500
The 2019 Senior Notes and the 2021 Senior Notes	900,000		849,375		900,000		864,000
Total	$	1,300,000	$	1,247,375	$	1,300,000	$	1,263,500