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Debt | 12 Months Ended
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Jun. 30, 2014
Debt |
Debt | 8. Debt On February 26, 2013, the Company completed an offering and sale of $300 million in aggregate principal amount of its 4.45% Senior Notes due 2023 (the “Notes”). The Notes accrue interest at the rate of 4.45% per annum, with interest payable in cash semi-annually in arrears on each March 1 and September 1, commencing September 1, 2013. The Notes will mature on March 1, 2023. The Notes will be senior unsecured indebtedness of the Company, ranking equally in right of payment with all its existing and future senior unsecured indebtedness and senior to its future subordinated indebtedness. We used the net proceeds from the issuance of the Notes to repay in full $100 million in aggregate principal amount of our senior unsecured notes due May 2013. We used the remaining net proceeds from the issuance of the Notes for general corporate purposes, which included discretionary pension contributions, additions to working capital and capital expenditures. On June 28, 2013, the Company entered into $500 million syndicated credit facility (“Credit Agreement”) that extends to June 28, 2018. The Credit Agreement replaced the Company’s previous revolving credit facility, dated as of June 21, 2011, which had been set to expire in June 2016. During the fiscal year ended June 30, 2013, the Company capitalized $0.8 million of debt issue costs paid in connection with the Credit Agreement. Interest on the borrowings under the Credit Agreement accrue at variable rates, based upon LIBOR or a defined “Base Rate,” that are determined based upon the rating of the Company’s senior unsecured long-term debt (the “Debt Rating”). The applicable margin to be added to LIBOR ranges from 0.75% to 1.90% (1.25% as of June 30, 2014), and for Base Rate-determined loans, from 0.0% to 0.90% (0.25% as of June 30, 2014). The Company also pays a quarterly commitment fee ranging from 0.075% to 0.375% (0.15% as of June 30, 2014), determined based upon the Company’s Debt Rating, of the $500 million commitment under the Credit Agreement. In addition, the Company must pay certain letter of credit fees, ranging from 0.75% to 1.90% (1.25% as of June 30, 2014), with respect to letters of credit issued under the Credit Agreement. The Company has the right to voluntarily prepay and reborrow loans and to terminate or reduce the commitments under the facility. As of June 30, 2014, the Company had $8.2 million of issued letters of credit under the Credit Agreement, with the balance of $491.8 million available for future borrowings. The Company is subject to certain financial and restrictive covenants under the Credit Agreement, which, among other things, require the maintenance of a minimum interest coverage ratio (of 3.50 to 1.00 for any period of four consecutive fiscal quarters of the Company). The interest coverage ratio is defined in the Credit Agreement as, for any period, the ratio of consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) to consolidated interest expense for such period. The Credit Agreement also requires the Company to maintain a debt to capital ratio of less than 55%. The debt to capital ratio is defined in the Credit Agreement as the ratio of consolidated indebtedness, as defined, to consolidated capitalization, as defined. As of June 30, 2014, the Company was in compliance with all of the covenants of the Credit Agreement. Long-term debt outstanding as of June 30, 2014 and 2013 consisted of the following:
|  | June 30, |
($ in millions) |  | 2014 |  | 2013 |
Medium-term notes, Series B at 6.97% to 7.10% due from April 2018 to May 2018 (face value of $55.0 million at June 30, 2014 and 2013) |  | $ | 55.0 |  | $ | 55.0 |
Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2014 and 2013) |  | 249.7 |  | 249.7 |
Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at June 30, 2014 and 2013) |  | 299.6 |  | 299.5 |
Total |  | 604.3 |  | 604.2 |
Less amounts due within one year |  | — |  | — |
Long-term debt, net of current portion |  | $ | 604.3 |  | $ | 604.2 |
Aggregate maturities of long-term debt for the five years subsequent to June 30, 2014, are $0.0 million in fiscal year 2015, 2016, 2017, $55.0 million in 2018, $0.0 in 2019 and $550.0 million thereafter. For the years ended June 30, 2014, 2013 and 2012, interest costs totaled $32.1 million, $27.8 million and $25.0 million, respectively, of which $15.1 million, $6.8 million and $1.2 million, respectively, were capitalized as part of the cost of property, plant, equipment and software.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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