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CREDIT ARRANGEMENTS | 12 Months Ended
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Aug. 31, 2025
Debt Disclosure [Abstract] |
CREDIT ARRANGEMENTS | NOTE 8. CREDIT ARRANGEMENTS Long-term debt was as follows:
|  | Weighted Average Interest Rate as of August 31, 2025 |  | Year Ended August 31,
(in thousands) |  |  | 2025 |  | 2024
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 |
Series 2025 Bonds, due 2032 |  | 4.625% |  | 150,000 |  |  | — |
Other |  | 5.100% |  | 10,108 |  |  | 11,910 |
Finance leases |  | 5.263% |  | 158,917 |  |  | 141,271 |
Total debt |  |  |  | 1,364,085 |  |  | 1,198,241 |
Less unamortized debt issuance costs |  |  |  | (14,051) |  |  | (13,073) |
Plus unamortized bond premium |  |  |  | 4,261 |  |  | 4,453 |
Total amounts outstanding |  |  |  | 1,354,295 |  |  | 1,189,621 |
Less current maturities of long-term debt |  |  |  | (44,289) |  |  | (38,786) |
Long-term debt |  |  |  | $ | 1,310,006 |  |  | $ | 1,150,835 |
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"). 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"). 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. 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. Series 2025 Bonds In May 2025, the Company announced the issuance of $150.0 million in original aggregate principal amount of tax-exempt bonds (the "Series 2025 Bonds") by the WVEDA. The Series 2025 Bonds were issued at par. The proceeds of the Series 2025 Bonds were loaned to the Compan y pursuant to a loan agreement with the WVEDA and will be used to finance a portion of the construction costs for facilities located in Berkeley County, West Virginia, the site of the Company's fourth micro mill. The Series 2025 Bonds accrue interest at a fixed rate of 4.625%, payable semiannually on April 15 and October 15 of each year, with the first such interest payment made in October 2025. The Series 2025 Bonds have a mandatory tender for purchase on May 15, 2032, and will mature in 2055. Issuance costs of $2.9 million were recorded as a reduction of long-term debt in the consolidated balance sheet as of August 31, 2025. Credit Facilities On October 30, 2024, the Company entered into the First Amendment to the Sixth Amended and Restated Credit Agreement (as amended, the "Credit Agreement"), which, among other things, extended the maturity date of the Credit Agreement from October 26, 2027 to October 26, 2029. The Credit Agreement provides for a $600.0 million revolving credit facility (the "Revolver"). The maximum availability under the Revolver may be increased to $850.0 million with bank approval. The Company had no amounts drawn under the Revolver at August 31, 2025 or 2024. 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. Outstanding stand-by letters of credit reduced availability under the Revolver by $1.0 million and $0.9 million at August 31, 2025 and 2024, respectively. 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, 2025, the Company was in compliance with all financial covenants contained in its credit arrangements. At August 31, 2025, the Company's interest coverage ratio was 10.18 to 1.00 and the Company's debt to capitalization ratio was 0.25 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, 2025 and 2024, CMCP's credit facilities totaled PLN 600.0 million, or $164.5 million and $154.8 million, respectively. The facilities have an expiration date in April 2028. There were no amounts outstanding under these facilities at August 31, 2025 or 2024. 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 $2.7 million and $2.4 million at August 31, 2025 and 2024, 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)
2026 |  | $ | 1,789 |
2027 |  | 1,782 |
2028 |  | 1,795 |
2029 |  | 1,806 |
2030 |  | 301,814 |
Thereafter |  | 896,182 |
Total long-term debt, excluding finance leases |  | 1,205,168 |
Less unamortized debt issuance costs |  | (14,051) |
Plus unamortized bond premium |  | 4,261 |
Total long-term debt outstanding, excluding finance leases |  | $ | 1,195,378 |
The Company capitalized $10.8 million, $5.4 million and $21.5 million of interest in the cost of property, plant and equipment during 2025, 2024 and 2023, 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 had a limit of PLN 288.0 million as of August 31, 2025 and 2024, equivalent to $78.9 million and $74.3 million, respectively. Advances taken under the Poland Facility incur interest based on the Warsaw Interbank Offered Rate plus a margin. Receivables transferred under the Poland Facility do not qualify for sale accounting. Therefore, any advances outstanding under this program are recorded as debt on the consolidated balance sheets. The Company had no outstanding advances under the Poland Facility as of August 31, 2025 or 2024. Commitment Letter In connection with pending acquisitions, the Company entered into a commitment letter (the "Commitment Letter") dated October 15, 2025, with Bank of America, N.A. ("Bank of America"), BofA Securities, Inc. ("BofA"), and Citigroup Global Markets Inc. ("Citi"), pursuant to which Bank of America and Citi agreed to provide a 364-day senior unsecured bridge facility in aggregate principal amount of up to $1.85 billion (the "Bridge Facility") and a senior secured revolving credit facility in the aggregate principal amount of $600.0 million (the "Backstop Facility"), subject to customary terms and conditions. See Note 20, Subsequent Events, in Part II, Item 8 of this Annual Report for information regarding the Company's pending acquisitions and the Commitment Letter.

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