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Long-Term Debt | 6 Months Ended
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Jan. 31, 2024
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt The components of long-term debt are as follows:
|  | January 31, 2024 |  | July 31, 2023
Term loan |  | $ | 807,621 |  |  | $ | 758,094 |
Asset-based credit facility |  | 59,604 |  |  | — |
Senior unsecured notes |  | 500,000 |  |  | 500,000 |
Unsecured notes |  | 27,093 |  |  | 27,558 |
Other debt |  | 35,468 |  |  | 41,753 |
Total long-term debt |  | 1,429,786 |  |  | 1,327,405 |
Debt issuance costs, net of amortization |  | (22,083) |  |  | (24,726) |
Total long-term debt, net of debt issuance costs |  | 1,407,703 |  |  | 1,302,679 |
Less: Current portion of long-term debt |  | (17,234) |  |  | (11,368) |
Total long-term debt, net, less current portion |  | $ | 1,390,469 |  |  | $ | 1,291,311 |
As discussed in Note 13 to the Company’s Consolidated Financial Statements included in the Fiscal 2023 Form 10-K, the Company is a party to a term loan (“term loan”) agreement, which consists of a U.S. dollar-denominated term loan tranche and a Euro-denominated term loan tranche, and a $1,000,000 revolving asset-based credit facility (“ABL”). On November 15, 2023, the Company entered into amendments to both its term loan and ABL agreements to extend maturities and lower the applicable margins used to determine the interest rate on the U.S. dollar-denominated term loan tranche. Pursuant to the term loan amendments, the applicable margin used to determine the interest rate on U.S. dollar-denominated loans was reduced by 0.25% so that the applicable margin for Alternate Base Rate ("ABR")-based loans is 1.75% and 2.75% for Secured Overnight Financing Rate (“SOFR”)-based loans. The SOFR credit spread adjustment applicable to U.S. dollar-denominated SOFR-based loans was eliminated. The applicable margin for Euro-denominated EURIBOR-based loans was unchanged. The maturity date for the term loan was extended from February 1, 2026 to November 15, 2030. Covenants and other material provisions of the term loan agreement remain materially unchanged. Following the amendments, the principal amounts outstanding under the term loan agreement were $450,000 on the U.S. dollar-denominated term loan tranche and 330,000 Euro on the Euro-denominated term loan tranche. Under the provisions of the amended term loan, both the U.S. and Euro tranches require annual principal payments of 1.0% of the new term loan balance, payable quarterly in 0.25% installments starting on May 1, 2024. Pursuant to the ABL amendment, the maturity date for loans under the ABL agreement was extended from September 1, 2026 to November 15, 2028. Maximum availability under the ABL remains at $1,000,000 and there were no borrowings outstanding as of the November 15, 2023 amendment date. The applicable margin, covenants and other material provisions of the ABL remain materially unchanged. The November 15, 2023 debt amendments noted above were evaluated on a creditor-by-creditor basis pursuant to the requirements in ASC 470-50 related to syndicated loan arrangements. Extinguishment accounting was applied to the creditors that were deemed to have a substantial difference in terms based on an analysis of the present values of cash flows before and after the amendments. As a result of this analysis, the Company recorded expense of $14,741 in the second quarter of fiscal 2024. $7,566 of this $14,741 expense is classified as interest expense in the Company’s Condensed Consolidated Statements of Income and Comprehensive Income and primarily represents extinguishment charges, while the remaining $7,175 is classified as administrative expense and primarily represents third-party costs attributed to the modified loans. In addition, during the second quarter of fiscal 2024 the Company capitalized qualifying financing-related costs of $10,480 related to these amendments which will be amortized over the remaining term of the amended agreements subject to acceleration for early term loan principal payments. As of January 31, 2024, the outstanding U.S. term loan tranche balance of $450,000 was subject to a SOFR-based rate totaling 8.083%. As of July 31, 2023, the outstanding U.S. term loan tranche balance of $271,900 was subject to a SOFR-based rate totaling 8.433%. The interest rate on the January 31, 2024 outstanding Euro term loan tranche balance of $357,621 was 6.88%, and the interest rate on the July 31, 2023 outstanding Euro term loan tranche of $486,194 was 6.625%. As of January 31, 2024, the weighted-average interest rate on the outstanding ABL borrowings of $59,604 was 5.108%. As of July 31, 2023, there were no outstanding ABL borrowings. The Company may, generally at its option, pay any borrowings under the ABL, in whole or in part, at any time and from time to time, without penalty or premium. Availability under the ABL agreement is subject to a borrowing base based on a percentage of applicable eligible receivables and eligible inventory. The unused availability under the ABL is generally available to the Company for general operating purposes and, based on January 31, 2024 eligible receivables and inventory balances, net of amounts drawn, totaled approximately $938,000. As discussed in Note 13 to the Company’s Consolidated Financial Statements included in the Fiscal 2023 Form 10-K, on October 14, 2021, the Company issued an aggregate principal amount of $500,000 of 4.000% Senior Unsecured Notes (“Senior Unsecured Notes”) that will mature on October 15, 2029 unless redeemed or repurchased earlier. Interest on the Senior Unsecured Notes is payable in semi-annual installments on April 15 and October 15 of each year. The unsecured notes of 25,000 Euro ($27,093) relate to long-term debt of our European segment. There are two series, 20,000 Euro ($21,674) with an interest rate of 1.945% maturing in March 2025, and 5,000 Euro ($5,419) with an interest rate of 2.534% maturing in March 2028. Other debt relates primarily to real estate loans with varying maturity dates through September 2032 and interest rates ranging from 2.38% to 2.87%. Total contractual gross debt maturities are as follows:
For the remainder of the fiscal year ending July 31, 2024 | $ | 7,532
For the fiscal year ending July 31, 2025 | 40,626
For the fiscal year ending July 31, 2026 | 11,201
For the fiscal year ending July 31, 2027 | 10,731
For the fiscal year ending July 31, 2028 | 16,215
For the fiscal year ending July 31, 2029 and thereafter | 1,343,481
| $ | 1,429,786
For the three and six months ended January 31, 2024, interest expense on the term loan, ABL, Senior Unsecured Notes and other debt facilities was $30,548 and $53,747, respectively, which includes amortization of capitalized debt issuance costs and the debt extinguishment charges noted above totaling $8,992 and $11,864, respectively. For the three and six months ended January 31, 2023, interest expense on the term loan, ABL and other debt facilities was $26,926 and $49,940, respectively, which includes amortization of debt issuance costs of $2,862 and $5,697, respectively. The fair value of the Company’s Senior Unsecured Notes at January 31, 2024 and July 31, 2023 was $444,950 and $430,650, respectively. The fair value of all other debt held by the Company approximates carrying value. The fair values of the Company’s long-term debt are primarily estimated using Level 2 inputs as defined by ASC 820, based on quoted prices in markets that are not active.

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