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Debt | 12 Months Ended
--- | ---
Sep. 30, 2024
Debt Disclosure [Abstract] |
Debt Disclosure | Debt The following table represents our debt at carrying value at September 30, 2024 and September 30, 2023:
| September 30, 2024 |  | September 30, 2023
| (In thousands)
Current maturities on debt: |  |  |
Revolving line of credit | $ | — |  |  | $ | 35,000 |
The $300 Million Term Loan | 15,000 |  |  | 15,000 |
Current maturities on debt | 15,000 |  |  | 50,000 |
Long-term debt: |  |  |
Revolving line of credit | 210,000 |  |  | 265,000 |
The $300 Million Term Loan | 243,750 |  |  | 258,750 |
The $450 Million Term Loan | 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 | (9,729) |  |  | (12,092) |
Long-term debt | 2,194,021 |  |  | 1,811,658 |
Total debt | $ | 2,209,021 |  |  | $ | 1,861,658 |
Revolving Line of Credit and Term Loans We have a $600 million unsecured revolving line of credit and a $300 million unsecured term loan (the “$300 Million Term Loan”) with a syndicate of banks that mature on August 19, 2026. Borrowings under the revolving line of credit and the $300 Million Term Loan 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. Interest rates on amounts borrowed under the revolving line of credit and the $300 Million Term Loan 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 $300 Million Term Loan 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. On June 13, 2024, we amended our credit agreement to provide for the issuance of a new $450 million unsecured term loan (the “$450 Million Term Loan”) with a syndicate of banks, increasing the total capacity of the credit agreement to $1.35 billion. The $450 Million Term Loan is subject to the same interest rate provisions and covenants as the revolving line of credit and the $300 Million Term Loan, and matures on August 19, 2026. 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. As of September 30, 2024, we had $210.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 6.396%, $258.8 million in outstanding balance of the $300 Million Term Loan at an interest rate of 6.344%, and $450.0 million in outstanding balance of the $450 Million Term Loan at an interest rate of 6.281%. We were in compliance with all financial covenants under the credit agreement as of September 30, 2024. Future principal payments for the term loans are as follows:
Year Ending September 30, | (In thousands)
2025 | $ | 15,000 |
2026 | 693,750 |
Total | $ | 708,750 |
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 September 30, 2024. The following table presents the face values and fair values for the Senior Notes at September 30, 2024 and 2023:
| September 30, 2024 |  | September 30, 2023
| Face Value |  | Fair Value |  | Face Value |  | Fair Value
| (In thousands)
The 2018 Senior Notes | $ | 400,000 |  |  | $ | 399,500 |  |  | $ | 400,000 |  |  | $ | 386,000 |
The 2019 Senior Notes and the 2021 Senior Notes | 900,000 |  |  | 864,000 |  |  | 900,000 |  |  | 803,250 |
Total | $ | 1,300,000 |  |  | $ | 1,263,500 |  |  | $ | 1,300,000 |  |  | $ | 1,189,250 |
Future principal payments for the Senior Notes are as follows:
Year Ending September 30, | (In thousands)
2026 | $ | 400,000 |
2027 | — |
2028 | 900,000 |
Total | $ | 1,300,000 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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