LONG-TERM DEBT AND CREDIT ARRANGEMENTS

The following table summarizes short-term and long-term debt obligations outstanding as of August 31, 2012 and 2011:



	August 31,
	2012		2011
	(In thousands)
Senior notes, LIBOR plus 80 bps, due 2013	$	30,000	$	—
Notes payable and other, due within one year	5,411		11,550
Short-term debt	$	35,411	$	11,550
Revolving credit loan, LIBOR plus applicable spread, due 2016	$	117,000	$	85,000
Euro notes, 4.485%, due 2016	57,130		69,098
Senior notes, LIBOR plus 80 bps, due 2013	—		30,000
Capital leases and other long-term debt	336		500
Long-term debt	$	174,466	$	184,598

In the second quarter of fiscal 2011, the Company and certain of its wholly-owned subsidiaries entered into a Credit Agreement, dated January 7, 2011 and containing a maturity date of January 7, 2016, with JPMorgan Chase Bank, N.A., as administrative agent, J.P. Morgan Europe Limited, and J.P. Morgan Chase Bank Berhad, each as global agent, and other lenders (the “Credit Agreement”). The Credit Agreement provides an aggregate revolving loan facility (the “Revolving Facility”) not to exceed $300 million comprised of a foreign tranche revolving loan of up to the U.S. dollar equivalent of $45 million, a Malaysian tranche revolving loan available in Malaysian ringgits of up to the U.S. dollar equivalent of $5 million and the remaining availability as a U.S. tranche revolving loan. The foreign tranche can be drawn in either Euros or Australian dollars. The Credit Agreement contains certain covenants that, among other things, restrict the Company’s ability to incur indebtedness and grant liens other than certain types of permitted indebtedness and permitted liens. The Company must also maintain a minimum interest coverage ratio and may not exceed a maximum net debt leverage ratio. As of August 31, 2012, the Company was not in violation of any of its covenants relating to the Revolving Facility. The Company was well within compliance with these covenants and does not believe a subsequent covenant violation is reasonably possible as of August 31, 2012. The Revolving Facility matures on January 7, 2016 and contains an accordion feature that would allow the Company to increase its total debt commitment by $150 million with the same original terms and conditions, pending required approval and funding. Outstanding borrowings under the new Credit Agreement are classified as long-term debt as of August 31, 2012.

Interest rates on the Revolving Facility are based on LIBOR, KLIBOR or EURIBOR (depending on the borrowing currency) plus a spread determined by the Company’s total leverage ratio. The Company also pays a facility fee on the commitments whether used or unused. The Revolving Facility allows for a provision which provides a portion of the funds available as a short-term swing-line loan. The swing-line loan interest rate varies based on a mutually agreed upon rate between the bank and the Company. As of August 31, 2012, the amount available under the Revolving Facility was reduced by outstanding letters of credit of $1.7 million and borrowings of $117.0 million. Outstanding letters of credit and borrowings as of August 31, 2011 were $1.9 million and $85.0 million, respectively.

On March 1, 2006, the Company issued senior guaranteed notes (“Senior Notes”) in the private placement market consisting of the following:


•	$30.0 million of Senior Notes in the United States, maturing on March 1, 2013, with a variable interest rate of LIBOR plus 80 bps (“Dollar Notes”). The Company may, at its option, prepay all or part of the Dollar Notes. As of August 31, 2012, the Dollar Notes are classified as short-term debt in the Company's consolidated balance sheet.


•	€50.3 million of Senior Notes in Germany, maturing on March 1, 2016, with a fixed interest rate of 4.485% (“Euro Notes”). The outstanding Euro Notes approximate $60.3 million as of August 31, 2012.

The Senior Notes are guaranteed by the Company’s wholly-owned domestic subsidiaries and contain covenants substantially identical to those in the Revolving Facility. As of August 31, 2012, the Company was not in violation of any of its covenants relating to the Senior Notes. The Company was well within compliance with these covenants and does not believe a subsequent covenant violation is reasonably possible as of August 31, 2012.

Both the Revolving Facility and the Senior Notes are supported by guaranties of certain material domestic subsidiaries and pledges of up to 65% of the capital stock of certain of the Company’s directly owned foreign subsidiaries.

The Company’s interest bearing short-term debt of $35.4 million as of August 31, 2012 had a weighted-average interest rate of approximately 1.8%. Interest bearing short-term debt as of August 31, 2011 was $8.5 million with a weighted-average interest rate of approximately 5.6%.

Below summarizes the Company’s available funds as of August 31, 2012 and 2011:



	As of August 31,
	2012		2011
	(In thousands)
Credit Facility	$	300,000	$	300,000
Foreign uncollateralized short-term lines of credit	48,098		65,436
Total gross available funds from credit lines and notes	$	348,098	$	365,436
Credit Facility	$	181,299	$	213,121
Foreign uncollateralized short-term lines of credit	43,752		58,437
Total net available funds from credit lines and notes	$	225,051	$	271,558

Total net available funds from credit lines and notes represents the total gross available funds from credit lines and notes less outstanding borrowings of $121.3 million and $92.0 million as of August 31, 2012 and 2011, respectively, and issued letters of credit of $1.7 million and $1.9 million as of August 31, 2012 and 2011, respectively.

Aggregate maturities of debt, including capital lease obligations, subsequent to August 31, 2012 are as follows (in thousands):



Fiscal 2013	$	35,411
2014	3,303
2015	3,250
2016	167,838
2017	40