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CREDIT ARRANGEMENTS | 12 Months Ended
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Aug. 31, 2024
Debt Disclosure [Abstract] |
CREDIT ARRANGEMENTS | NOTE 8. CREDIT ARRANGEMENTS Long-term debt was as follows:
|  | Weighted Average Interest Rate as of August 31, 2024 |  | Year Ended August 31,
(in thousands) |  |  | 2024 |  | 2023
2030 Notes |  | 4.125% |  | $ | 300,000 |  |  | $ | 300,000 |
2031 Notes |  | 3.875% |  | 300,000 |  |  | 300,000 |
2032 Notes |  | 4.375% |  | 300,000 |  |  | 300,000 |
Series 2022 Bonds, due 2047 |  | 4.000% |  | 145,060 |  |  | 145,060 |
Short-term borrowings |  | (1) |  | — |  |  | 8,419 |
Other |  | 5.100% |  | 11,910 |  |  | 16,042 |
Finance leases |  | 5.134% |  | 141,271 |  |  | 95,470 |
Total debt |  |  |  | 1,198,241 |  |  | 1,164,991 |
Less unamortized debt issuance costs |  |  |  | (13,073) |  |  | (14,840) |
Plus unamortized bond premium |  |  |  | 4,453 |  |  | 4,646 |
Total amounts outstanding |  |  |  | 1,189,621 |  |  | 1,154,797 |
Less current maturities of long-term debt and short-term borrowings |  |  |  | (38,786) |  |  | (40,513) |
Long-term debt |  |  |  | $ | 1,150,835 |  |  | $ | 1,114,284 |
__________________________________ (1) The weighted average interest rate of short-term borrowings was 6.790% and 7.800% as of August 31, 2024 and 2023, respectively. Senior Notes In January 2022, the Company issued $300.0 million of 4.125% Senior Notes due January 2030 (the "2030 Notes") and $300.0 million of 4.375% Senior Notes due March 2032 (the "2032 Notes"). Aggregate issuance costs associated with the 2030 Notes and 2032 Notes were approximately $9.4 million. Interest on the 2030 Notes is payable semiannually on January 15 and July 15. Interest on the 2032 Notes is payable semiannually on March 15 and September 15. In February 2021, the Company issued $300.0 million of 3.875% Senior Notes due February 2031 (the "2031 Notes") and accepted for purchase all of the previously outstanding $350.0 million of 5.750% Senior Notes due April 2026 (the "2026 Notes") through a cash tender offer. Interest on the 2031 Notes is payable semiannually on February 15 and August 15. Series 2022 Bonds In February 2022, the Company announced the issuance of $145.1 million in original aggregate principal amount of tax-exempt bonds (the "Series 2022 Bonds") by the Industrial Development Authority of the County of Maricopa (the "MCIDA"). The Series 2022 Bonds were priced to yield 3.5% and provided gross proceeds of $150.0 million. The proceeds were loaned to the Company pursuant to a loan agreement between the Company and the MCIDA and were used to fund a portion of the acquisition, construction and equipping of the Company’s third micro mill. Issuance costs associated with the Series 2022 Bonds were $3.1 million. The Series 2022 Bonds accrue interest at 4.0%, payable semiannually on April 15 and October 15, and have a maturity date in October 2047. Credit Facilities The Company has a $600.0 million revolving credit facility (the "Revolver"), pursuant to the Sixth Amended and Restated Credit Agreement (as amended, the "Credit Agreement"). The Credit Agreement has a maturity date in October 2027. The maximum availability under the Revolver can be increased to $850.0 million with bank approval. The Credit Agreement also provided for a delayed draw senior secured term loan facility with a maximum principal amount of $200.0 million, which expired undrawn in October 2023, in accordance with its terms. The Company had no amounts drawn under the Revolver at August 31, 2024 or 2023. The Company's obligations under the Credit Agreement are secured by its U.S.-domiciled inventory. The Credit Agreement's capacity includes a $50.0 million sub-limit for the issuance of stand-by letters of credit. The availability under the Revolver was reduced by outstanding stand-by letters of credit of $0.9 million at August 31, 2024 and 2023. Under the Credit Agreement, the Company is required to comply with certain covenants, including covenants to maintain: (i) an interest coverage ratio (consolidated EBITDA to consolidated interest expense, as each is defined in the Credit Agreement) of not less than 2.50 to 1.00 and (ii) a debt to capitalization ratio (consolidated funded debt to total capitalization, as each is defined in the Credit Agreement) that does not exceed 0.60 to 1.00. Loans under the Credit Agreement bear interest based on the Eurocurrency rate, a base rate, or the Secured Overnight Financing Rate ("SOFR"). At August 31, 2024, the Company was in compliance with all financial covenants contained in its credit arrangements. At August 31, 2024, the Company's interest coverage ratio was 20.37 to 1.00 and the Company's debt to capitalization ratio was 0.22 to 1.00. The Company also has credit facilities in Poland, through its subsidiary, CMC Poland Sp. z.o.o. ("CMCP"), available to support working capital, short-term cash needs, letters of credit, financial assurance and other trade finance-related matters. At August 31, 2024 and 2023, CMCP's credit facilities totaled PLN 600.0 million, or $154.8 million and $145.4 million, respectively. The facilities have an expiration date in April 2026. There were no amounts outstanding under these facilities at August 31, 2024 or 2023. The available balance of these credit facilities was reduced by outstanding stand-by letters of credit, guarantees and/or other financial assurance instruments, which totaled $2.4 million and $16.3 million at August 31, 2024 and 2023, respectively. The scheduled maturities of the Company's long-term debt, excluding obligations related to finance leases, are included in the table below. See Note 7, Leases, for scheduled maturities of finance leases.
Year Ended August 31, |  | (in thousands)
2025 |  | $ | 1,802 |
2026 |  | 1,789 |
2027 |  | 1,782 |
2028 |  | 1,795 |
2029 |  | 1,806 |
Thereafter |  | 1,047,996 |
Total long-term debt, excluding finance leases |  | 1,056,970 |
Less unamortized debt issuance costs |  | (13,073) |
Plus unamortized bond premium |  | 4,453 |
Total long-term debt outstanding, excluding finance leases |  | $ | 1,048,350 |
The Company capitalized $5.4 million, $21.5 million and $11.9 million of interest in the cost of property, plant and equipment during 2024, 2023 and 2022, respectively. Accounts Receivable Facility The Company's subsidiary in Poland, CMCP, transfers trade accounts receivable to financial institutions without recourse (the "Poland Facility"). The Poland Facility has a facility limit of PLN 288.0 million, or $74.3 million and $69.8 million as of August 31, 2024 and 2023, respectively. Advances taken under the Poland Facility incur interest based on the Warsaw Interbank Offered Rate ("WIBOR") plus a margin. The transfers of receivables under the Poland Facility do not qualify to be accounted for as sales. Therefore, any advances outstanding under this program are recorded as debt on the Company's consolidated balance sheets. The Company had no advance payments outstanding under the Poland Facility at August 31, 2024 compared to PLN 34.7 million, or $8.4 million, at August 31, 2023.

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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 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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