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Long-Term Debt | 9 Months Ended
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Apr. 30, 2022
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt The components of long-term debt are as follows:
|  | April 30, 2022 |  | July 31, 2021
Term loan |  | $ | 1,347,392 |  |  | $ | 1,540,013 |
Asset-based credit facility |  | 100,000 |  |  | — |
Senior unsecured notes |  | 500,000 |  |  | — |
Unsecured notes |  | 26,350 |  |  | 29,728 |
Other debt |  | 55,618 |  |  | 70,952 |
Gross long-term debt |  | 2,029,360 |  |  | 1,640,693 |
Debt issuance costs, net of amortization |  | (34,773) |  |  | (33,461) |
Total long-term debt, net of debt issuance costs |  | 1,994,587 |  |  | 1,607,232 |
Less: current portion of long-term debt |  | (10,991) |  |  | (12,411) |
Total long-term debt, net, less current portion |  | $ | 1,983,596 |  |  | $ | 1,594,821 |
The Company is a party to a term loan (“term loan”) agreement, which consists of both a United States Dollar-denominated term loan tranche and a Euro-denominated term loan tranche, and a revolving asset-based credit facility (“ABL”). Subject to earlier termination, the term loan matures on February 1, 2026 and the ABL originally matured on February 1, 2024. In connection with the Airxcel acquisition discussed in Note 2 to the Condensed Consolidated Financial Statements, effective September 1, 2021, the Company expanded its existing ABL facility from $750,000 to $1,000,000, favorably amended certain terms of the ABL agreement and extended the maturity date of the ABL from February 1, 2024 to September 1, 2026, subject to a springing maturity at an earlier date if the maturity date of the Company’s term loan has not been extended or refinanced. The ABL interest rate provisions remain unchanged. As of April 30, 2022, the entire outstanding U.S. term loan tranche balance of $836,900 was subject to a LIBOR-based rate totaling 3.813%. The interest rate on $326,300 of that balance, however, was fixed at 5.466% through an interest rate swap, dated March 18, 2019, by swapping the underlying one-month LIBOR rate for a fixed rate of 2.466%. As of July 31, 2021, the entire outstanding U.S. term loan tranche balance of $941,900 was subject to a LIBOR-based rate totaling 3.125%, but the interest rate on $482,138 of that balance was fixed at 5.466% through an interest rate swap, dated March 18, 2019, by swapping the underlying one-month LIBOR rate for a fixed rate of 2.466%. The total interest rate on the April 30, 2022 outstanding Euro term loan tranche balance of $510,492 was 3.000%, and the total interest rate on the July 31, 2021 outstanding Euro term loan tranche of $598,113 was also 3.000%. As of April 30, 2022, the total weighted-average interest rate on the outstanding ABL borrowings of $100,000 was 1.702%. The Company may, generally at its option, repay any borrowings under the ABL, in whole or in part, at any time and from time to time, without penalty or premium. On October 14, 2021, the Company issued an aggregate principal amount of $500,000 of 4.000% Senior Unsecured Notes due 2029 (“Senior Unsecured Notes”). The Senior Unsecured Notes will mature on October 15, 2029 unless redeemed or repurchased earlier. Net proceeds from the Senior Unsecured Notes, along with cash on hand, were used to repay $500,000 of borrowings outstanding on the Company’s ABL and for certain transaction costs. Interest on the Senior Unsecured Notes is payable in semi-annual installments on April 15 and October 15 of each year, and the first semi-annual interest payment was made on April 14, 2022. The Senior Unsecured Notes rank equally in right of payment with all of the Company’s existing and future senior indebtedness and senior to the Company’s future subordinated indebtedness, and effectively junior in right of payment to the Company’s existing and future secured indebtedness to the extent of the assets securing such indebtedness. The Company must make mandatory prepayments of principal under the term loan agreement upon the occurrence of certain specified events, including certain asset sales, debt issuances and receipt of annual cash flows in excess of certain amounts. No such specified events occurred during the three or nine months ended April 30, 2022 or 2021. Availability under the ABL agreement is subject to a borrowing base based on a percentage of applicable eligible receivables and eligible inventory. The ABL carries interest at an annual base rate plus 0.25% to 0.50%, or LIBOR plus 1.25% to 1.50%, based on adjusted excess availability as defined in the ABL agreement. This agreement also includes a 0.20% unused facility fee. The unused availability under the ABL is generally available to the Company for general operating purposes and, based on April 30, 2022 eligible accounts receivable and inventory balances, net of amounts drawn, totaled approximately $870,000. The unsecured notes of 25,000 Euro ($26,350) relate to long-term debt of our European segment. There are two series, 20,000 Euro ($21,080) with an interest rate of 1.945% maturing in March 2025, and 5,000 Euro ($5,270) with an interest rate of 2.534% maturing March 2028. Other debt relates primarily to real estate loans with varying maturity dates through September 2032 and interest rates ranging from 2.400% to 3.430%. Total contractual gross debt maturities are as follows:
For the remainder of the fiscal year ending July 31, 2022 | $ | 3,694
For the fiscal year ending July 31, 2023 | 10,809
For the fiscal year ending July 31, 2024 | 10,924
For the fiscal year ending July 31, 2025 | 31,888
For the fiscal year ending July 31, 2026 | 1,450,019
For the fiscal year ending July 31, 2027 and thereafter | 522,026
| $ | 2,029,360
For the three and nine months ended April 30, 2022, interest expense on the term loan, ABL, Senior Unsecured Notes and other debt facilities was $19,604 and $58,059, respectively. For the three and nine months ended April 30, 2021, interest expense on the term loan, ABL and other debt facilities was $18,361 and $59,612, respectively. In fiscal 2019, the Company incurred fees to secure the term loan and ABL, and those amounts are being amortized ratably over the respective seven and five-year terms of those agreements. The Company also incurred and capitalized certain creditor fees related to the March 25, 2021 repricing of its term loan, to be amortized over the remaining life of the term loan, and certain creditor fees related to the September 1, 2021 expansion of the ABL, which are being amortized over the remaining life of the extended ABL. In addition, the Company incurred fees of $8,445 relative to the $500,000 Senior Unsecured Notes issued October 14, 2021 discussed above, and those debt issuance costs are being amortized over the eight-year term of those notes. The Company recorded total charges related to the amortization of these term loan, ABL and Unsecured Senior Note fees, which are classified as interest expense, of $2,889 and $8,457 for the three and nine months ended April 30, 2022, respectively. The total charges related to the amortization of these fees were $7,365 and $12,825 for the three and nine months ended April 30, 2021, respectively, which included $4,688 of accelerated amortization on certain fees related to the term loan debt repricing done in the three months ended April 30, 2021. The unamortized balance of all capitalized ABL facility fees was $6,747 at April 30, 2022 and $7,005 as of July 31, 2021 and is included in Other long-term assets in the Condensed Consolidated Balance Sheets. The fair value of the Company’s term-loan debt at April 30, 2022 and July 31, 2021 was $1,330,550 and $1,551,141, respectively, and the fair value of the Company’s Senior Unsecured Notes at April 30, 2022 was $421,900. The fair values of the Company’s term-loan debt and Senior Unsecured Notes are primarily estimated using Level 2 inputs as defined by ASC 820, primarily based on quoted market prices. The fair value of other debt held by the Company approximates carrying value.

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