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DEBT | 9 Months Ended
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Mar. 31, 2021
Debt Disclosure [Abstract] |
DEBT | DEBT On March 30, 2021, the Company, as borrower and certain domestic subsidiaries entered into an amended and restated credit agreement (the “Third Amended and Restated Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), the other financial institutions named as lenders therein, and Wells Fargo as administrative agent and collateral agent for the lenders, that extended the $700 million senior secured revolving credit facility (the “Revolving Facility”) and provided a new $500 million senior secured term loan facility (the “Term Facility”, together with the Revolving Facility, the “Facilities”), and extended the maturity of the Facilities to March 30, 2026. In addition, the Facilities include an option to request increases in the amounts of such credit facilities by up to an additional $500 million in the aggregate. The Third Amended and Restated Credit Agreement replaced the Company's existing $700 million senior secured revolving facility (the “Existing Revolving Facility”) and $500 million senior secured term loan facility (the “Existing Term Facility”, together with the Existing Revolving Facility, the “Existing Facilities”) under the Second Amended & Restated Credit Agreement, dated as of January 17, 2018 (as amended by the First Amendment, dated as of June 29, 2018, the Second Amendment, dated as of March 15, and the Third Amendment, dated as of September 9, 2019, the “Existing Credit Agreement”). The Facilities replace the Company's Existing Facilities under the Existing Credit Agreement, which has been terminated in connection with the Third Amended and Restated Credit Agreement. At the closing of the Third Amended and Restated Credit Agreement, the Term facility was fully drawn, of which $462.5 million and $0.7 million was used to repay the Existing Term Facility under the Existing Credit Agreement for principal and interest, respectively. Additionally, at closing of the Third Amended and Restated Credit Agreement, $75.0 million and $0.4 million of the Existing Revolving Facility under the Existing Credit Agreement was repaid for principal and interest, respectively. The Company then borrowed $75.0 million under the Revolving Facility under the Third Amended and Restated Credit Agreement. The Company incurred $3.3 million of debt issuance costs which are capitalized and amortized as interest expense over the life of the facilities. The Company’s Debt consisted of the following (in thousands):
| March 31, 2021 |  | June 30, 2020
Term Loan - short term | $ | 25,000 |  |  | $ | 25,000 |
Debt issuance costs, net | (1,135) |  |  | (933) |
Total Debt - short term | 23,865 |  |  | 24,067 |
Term Loan - long term | 475,000 |  |  | 450,000 |
Revolver - long term | 75,000 |  |  | 180,000 |
Debt issuance costs, net | (1,867) |  |  | (1,563) |
Total Debt - long term | $ | 548,133 |  |  | $ | 628,437 |
The Revolving Facility includes a sub-limit of $25.0 million for letters of credit and a sub-limit of $25.0 million for swingline loans. The Facilities are available for working capital and general corporate purposes that comply with the terms of the Third Amended and Restated Credit Agreement, including to finance the repurchase of the Company’s common stock or to make dividends to the holders of the Company’s common stock. Under the Third Amended and Restated Credit Agreement, revolving loans and swingline loans may be borrowed, repaid and reborrowed until March 30, 2026, at which time all amounts borrowed must be repaid. The term loan is payable in quarterly installments of 1.25% of the original principal amount of the term loan, commencing with the quarter ending June 30, 2021. Revolving, swingline and term loans may be prepaid at any time without penalty. Revolving and term loans bear interest, at the Company’s option, at either (i) a floating rate per annum equal to the base rate plus a margin of between 0.50% and 1.25%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter or (ii) a floating per annum rate equal to the applicable LIBOR rate (or replacement rate) for a specified period, plus a margin of between 1.50% and 2.25%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter. Swingline loans bear interest at a floating rate per annum equal to the base rate plus a margin of between 0.50% and 1.25%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter. Base rate is defined as the greatest of (A) Wells Fargo’s prime rate, (B) the federal funds rate plus 0.50% or (C) the applicable LIBOR rate (or replacement rate) for a period of one month plus 1.00%. A default interest rate shall apply on all obligations during certain events of default under the Third Amended and Restated Credit Agreement at a rate per annum equal to 2.00% above the applicable interest rate. The Company will pay to each lender a facility fee on a quarterly basis based on the unused amount of each lender’s commitment to make revolving loans, of between 0.20% and 0.35%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter. The Company will also pay to the applicable lenders on a quarterly basis certain fees based on the daily amount available to be drawn under each outstanding letter of credit, including aggregate letter of credit commissions of between 1.50% and 2.25%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter, and issuance fees of 0.125% per annum. The Company is also obligated to pay Wells Fargo, as agent, fees customary for a credit facility of this size and type. The Third Amended and Restated Credit Agreement requires the Company to maintain during the term of the Facilities a maximum consolidated total leverage ratio of 3.50 to 1.00 and a minimum consolidated interest coverage ratio of 3.5 to 1.00. In addition, the Third Amended and Restated Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the ability of the Company and its subsidiaries to, among other things, grant liens or enter into agreements restricting their ability to grant liens on property, enter into mergers, dispose of assets, change their accounting or reporting policies, change their business and incur indebtedness, in each case subject to customary exceptions for a credit facility of this size and type. The Third Amended and Restated Credit Agreement includes customary events of default that include, among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments, change of control and certain ERISA events. The occurrence of an event of default could result in the acceleration of the obligations under the Third Amended and Restated Credit Agreement. The Facilities As of March 31, 2021, $500.0 million was outstanding on the Term Facility and $75.0 million on the Revolving Facility, leaving $625.0 million available on the Revolving Facility. Term Facility: Under the Existing Credit Agreement, during the three months ended March 31, 2021, the Company made no principal payments against the Existing Term Facility, however, made $2.0 million payment of interest. During the nine months ended March 31, 2021, the Company made aggregate payments of $19.1 million under the Existing Term Facility, of which $12.5 million was repayment of principal and $6.6 million was payment of interest. As of March 31, 2021, the interest rate on the term loan was 1.61%. As of April 30, 2021, the most currently available reset date, the Term Facility has an interest rate of 1.6%. Revolving Facility: Under the Existing Credit Agreement, during the three months ended March 31, 2021, the Company made aggregate payments of $71.0 million under the Existing Revolving Facility, of which $70.0 million was repayment of principal and $1.0 million was payment of interest. During the nine months ended March 31, 2021, the Company made aggregate payments of $182.9 million under the Existing Revolving Facility, of which $180.0 million was repayment of principal and $2.9 million was payment of interest. The table below shows the respective interest rates as of March 31, 2021, in addition to the interest rate reset dates as available for each revolver draw.
Debt Payment Obligations |  | Interest Rate as of March 31, 2021 |  | Rate Reset Date |  | Reset Rate
$75 Million Revolver |  | 1.61 | % |  | April 30, 2021 |  | 1.61%
The following table summarizes the Company’s estimated debt and interest payment obligations as of March 31, 2021, for the remainder of fiscal 2021 and future fiscal years (in thousands):
| 2021 (remainder) |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | Thereafter |  | Total
Debt payment obligations | $ | 6,250 |  |  | $ | 25,000 |  |  | $ | 25,000 |  |  | $ | 25,000 |  |  | $ | 25,000 |  |  | $ | 468,750 |  |  | $ | 575,000 |
Interest and other payments on debt payment obligations (1) | 2,654 |  |  | 10,391 |  |  | 9,983 |  |  | 9,601 |  |  | 9,167 |  |  | 6,590 |  |  | 48,386 |
Total | $ | 8,904 |  |  | $ | 35,391 |  |  | $ | 34,983 |  |  | $ | 34,601 |  |  | $ | 34,167 |  |  | $ | 475,340 |  |  | $ | 623,386 |
(1) - Interest payments are calculated based on the applicable rates and payment dates as of March 31, 2021. Although the Company’s interest rates on our debt obligations may vary, the Company has assumed the most recent available interest rates for all periods presented.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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