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Debt | 9 Months Ended
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Mar. 31, 2021
Debt Disclosure [Abstract] |
Debt | Debt On July 10, 2020, the Company completed its offering and sale of $400 million in aggregate principal amount of 6.375% Senior Notes due 2028 (the “Notes”). The Notes accrue interest at the rate of 6.375% per annum, with interest payable in cash semi-annually in arrears on each January 15 and July 15, commencing January 15, 2021. The Notes will mature on July 15, 2028. The Notes are senior unsecured indebtedness of the Company, ranking equally in right of payment with all its existing and future senior unsecured indebtedness and senior to any future subordinated indebtedness. The Company utilized a portion of the net proceeds from the issuance of the Notes to repay in full $250.0 million in aggregate principal amount of its senior unsecured notes due July 2021. The Company used or intends to use the remaining net proceeds from the issuance of the Notes for general corporate purposes. On March 26, 2021, the Company entered into a $300.0 million secured revolving credit facility (the “Credit Facility”). The Credit Facility amended and restated the Company's previous revolving credit facility, dated March 31, 2017, which had been set to expire in March 2022. The Credit Facility extends the maturity to March 31, 2024, subject to a springing maturity of November 30, 2022. If, by November 30, 2022, the Company’s outstanding $300.0 million 4.45% Senior Notes due in March 2023 are not redeemed, repurchased or refinanced with indebtedness having a maturity date of October 1, 2024 or later, all indebtedness under the Credit Facility will be due. The Credit Facility contains a revolving credit commitment amount of $300.0 million, subject to the Company’s right, from time to time, to request an increase of the commitment to $500.0 million in the aggregate; and provides for the issuance of letters of credit subject to a $40.0 million sub-limit. The Company has the right to terminate or reduce the commitments under the Credit Facility, and, subject to certain lender approvals, to join subsidiaries as subsidiary borrowers. Interest on the borrowings under the Credit Facility accrue at variable rates, based upon a “Eurocurrency Rate” or a defined “Base Rate”. Both are determined based upon the credit rating of the Company’s senior unsecured long-term debt (the “Debt Rating”). The applicable margin to be added to Eurocurrency Rate ranges from 1.25% to 2.25% (2.00% as of March 31, 2021), and for Base Rate-determined loans, from 0.25% to 1.25% (1.00% as of March 31, 2021). The Company also pays a quarterly commitment fee ranging from 0.275% to 0.375% (0.35% as of March 31, 2021), determined based upon the Debt Rating, of the unused portion of the $300.0 million commitment under the Credit Facility. In addition, the Company must pay certain letter of credit fees, ranging from 1.25% to 2.25% (2.00% as of March 31, 2021), with respect to letters of credit issued under the Credit Facility. The Company has the right to voluntarily prepay and re-borrow loans and to terminate or reduce the commitments under the facility. As of March 31, 2021, the Company had $5.4 million of issued letters of credit and no short-term borrowings under the Credit Facility with the balance of $294.6 million available to the Company. As of March 31, 2021, the borrowing rate for the Credit Facility was 2.11%. The Company is subject to certain financial and restrictive covenants under the Credit Facility, which, among other things, require the maintenance of a minimum interest coverage ratio. The interest coverage ratio is defined in the Credit Facility as, for any period, the ratio of consolidated earnings before interest, taxes, depreciation and amortization and non-cash net pension expense (“EBITDA”) to consolidated interest expense for such period. The interest coverage covenant is waived until the quarter ended March 31, 2022 at which time it will be 3.00 to 1.00 and then 3.50 to 1.00 thereafter. The Credit Facility also requires the Company to maintain a debt to capital ratio of less than 55 percent. The debt to capital ratio is defined in the Credit Facility as the ratio of consolidated indebtedness, as defined therein, to consolidated capitalization, as defined therein. During the period which the interest coverage covenant is waived, the Credit Facility requires that the Company maintain a minimum available liquidity of $150.0 million for certain periods, which is defined in the Credit Facility as aggregate amount of loans available to be drawn under the credit facility plus non-restricted cash and cash equivalents as defined therein. In addition, the Company is also subject to an asset coverage ratio minimum of 1.10 to 1.00. The asset coverage ratio is defined in the Credit Facility as eligible receivables and inventory, as defined therein, to outstanding loans and obligations, as defined therein. As of March 31, 2021, the Company was in compliance with all of the covenants of the Credit Facility. Long-term debt outstanding as of March 31, 2021 and June 30, 2020 consisted of the following:
($ in millions) |  | March 31, 2021 |  | June 30, 2020 |  |  |  |
Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2020) |  | $ | — |  |  | $ | 252.3 |  |  |  |  |
Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at March 31, 2021 and June 30, 2020) |  | 299.4 |  |  | 299.5 |  |  |  |  |
Senior unsecured notes, 6.375% due July 2028 (face value of $400.0 million at March 31, 2021) |  | 394.9 |  |  | — |  |  |  |  |
Total |  | 694.3 |  |  | 551.8 |  |  |  |  |
Less: amounts due within one year |  | — |  |  | — |  |  |  |  |
Long-term debt, net of current portion |  | $ | 694.3 |  |  | $ | 551.8 |  |  |  |  |
For the three months ended March 31, 2021 and 2020, interest costs totaled $10.1 million and $7.2 million, respectively, of which $1.2 million and $2.3 million, respectively, were capitalized as part of the cost of property, plant, equipment and software. For the nine months ended March 31, 2021 and 2020, interest costs totaled $30.4 million and $22.1 million, respectively, of which $6.9 million and $6.5 million, respectively, were capitalized as part of the cost of property, plant, equipment and software. Debt extinguishment losses, net for the nine months ended March 31, 2021 includes $10.5 million of debt prepayment costs on the Notes due July 2021 offset by gains of $2.3 million on related interest rate swaps that were terminated in connection with the prepayment. For the three and nine months ended March 31, 2020, debt extinguishment losses, net totaled $0.0 million.

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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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