LINE-OF-CREDIT BORROWINGS AND DEBT

12 Months Ended

Jun. 30, 2015

6. LINE‑OF‑CREDIT BORROWINGS AND DEBT

The Company has a $450 million credit agreement maturing in May 2019. The credit agreement consists of a $450 million revolving credit facility, including a $375 million sub‑limit for letters of credit. The Company has the ability to increase the facility by $200 million under certain circumstances. Borrowings under this facility bear interest at LIBOR plus a margin of 1.25% as of June 30, 2015. This margin is determined by the Company’s consolidated leverage ratio and may range from 1.25% to 2.0%. Letters of credit reduce the amount available to borrow by their face value. As of June 30, 2015, the unused portion of the facility bears a commitment fee of 0.20%, but can range from 0.20% to 0.35% based on the Company’s consolidated leverage ratio. The Company’s borrowings under the credit agreement are guaranteed by the Company’s U.S.‑based subsidiaries and are secured by substantially all of the Company’s and certain subsidiaries’ assets. The agreement contains various representations, warranties, affirmative, negative and financial covenants, and conditions of default customary for financing agreements of this type. As of June 30, 2015, there was no borrowing outstanding under the revolving credit facility and letters‑of‑credit outstanding totaled $6.0 million. As of June 30, 2015, the Company believes that it is in material compliance with all related covenants to this credit facility.

Several of the Company’s foreign subsidiaries maintain bank lines‑of‑credit, denominated in local currencies and U.S. dollars, to meet short‑term working capital requirements and for the issuance of letters‑of‑credit. As of June 30, 2015, $46.3 million was outstanding under these lines‑of‑credit facilities, while no debt was outstanding. As of June 30, 2015, the total amount available under these credit facilities was $12.9 million, with a total cash borrowing sub‑limit of $1.6 million.

In September 2012, the Company entered into a term loan agreement for $11.1 million to fund the acquisition of land and a building in the state of Washington. The loan is payable over seven years and bears interest at LIBOR plus 1.25%, which is payable on a monthly basis. Concurrent with entering into the floating rate loan, the Company entered into an interest rate swap agreement that effectively locks the interest rate of the loan to 2.2% per annum for the term of the loan. As of June 30, 2015, $6.9 million remained outstanding under this loan.

Long‑term debt consisted of the following at June 30 (in thousands):


	2014		2015
Term loans	$	10,921	$	8,935
Other long-term debt		2,334		2,422
		13,255		11,357
Less current portion of long-term debt		2,819		2,801
Long-term portion of debt	$	10,436	$	8,556

Fiscal year principal payments of long‑term debt as of June 30, 2015 are as follows (in thousands):


2016	$	2,801
2017		2,707
2018		2,249
2019		1,877
2020		746
Thereafter		977
Total	$	11,357