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Debt | 12 Months Ended
--- | ---
Sep. 30, 2024
Debt Disclosure [Abstract] |
Debt | Note 13 - Debt
|  | September 30, 2024 |  | September 30, 2023
|  | Interest Rate |  | Maturity Date |  | Carrying Value of Debt (6) |  | Carrying Value of Debt (6)
Revolving Credit Facility(1) |  | 6.81 | % |  | Nov 2027 |  | $ | 56,000 |  |  | $ | 90,000 |
Avondale Term Loan(2) |  | 7.24 | % |  | May 2028 |  | 28,390 |  |  | 29,251 |
Lisle Term Loan(3) |  | 7.20 | % |  | Apr 2029 |  | 36,929 |  |  | 37,740 |
Finance lease(4) |  | 6.02 | % |  | Jan 2029 |  | 4,768 |  |  | 5,601 |
Total debt |  |  |  |  |  | 126,087 |  |  | 162,592 |
Debt issuance costs presented with debt (5) |  |  |  |  |  | (383) |  |  | (475) |
Total debt, net |  |  |  |  |  | 125,704 |  |  | 162,117 |
Less: current portion of long-term debt |  |  |  |  |  | (2,697) |  |  | (2,517) |
Long-term debt |  |  |  |  |  | $ | 123,007 |  |  | $ | 159,600 |
(1) Interest on the Revolving Credit Facility (as defined below) accrues at annual rate equal to Term SOFR plus a margin of 1.85%. (2) Interest on the Avondale Term Loan (as defined below) accrues at annual rate equal to Term SOFR plus 2.0% and a tranche adjustment of 0.046%. (3) Interest on the Lisle Term Loan (as defined below) accrues at annual rate equal to the Term SOFR plus 2.0%. (4) The finance lease balance as of September 30, 2024 is related to a facility lease with an annual interest rate of 6.02% that matures in 2029. See Note 11 for additional details on our finance leases. (5) The unamortized debt issuance costs as of September 30, 2024 relate to the Avondale Term Loan and the Lisle Term Loan. (6) The Revolving Credit Facility, Avondale Term Loan, Lisle Term Loan and finance leases bear interest at rates commensurate with market rates, and therefore, the respective carrying values approximate fair value (Level 2). Revolving Credit Facility On November 18, 2022, we entered into a $100.0 million senior secured revolving credit facility with Fifth Third Bank (the “Credit Facility” or “Revolving Credit Facility”), which includes a $20.0 million sub facility that is available for letters of credit, for a term of three years. This agreement provides that borrowings under the Credit Facility will amortize on an interest-only basis during its term with principal able to be borrowed, re-paid and re-borrowed throughout the term of the Credit Facility and with the outstanding principal due and payable at maturity. Borrowings under the Credit Facility can bear interest at a variable rate of either (a) the greater of 3.50% or the lender’s Prime rate or (b) either one-month or three-month Term SOFR plus an adjustment of 0.10-0.15%. Any borrowings will also have an applicable margin that varies from 1.75% up to 2.25% based on our total leverage ratio at the time of the borrowing. In executing the Credit Facility, we incurred $0.5 million in debt issuance costs which have been recorded in “Other assets” on the consolidated balance sheets as of September 30, 2024. On November 28, 2022, we drew $90.0 million from the Credit Facility in support of the closing of the Concorde Acquisition. In December 2022, a $1.8 million letter of credit was issued on the Credit Facility, which expired in March 2024. On September 26, 2024, the Credit Facility was amended to increase the commitment amount to $125.0 million and extend the maturity date to November 30, 2027. We also have the option to request an increase of up to an additional $25.0 million, subject to the lender’s discretion to grant such increase. Under the amended agreement, advances made under the Credit Facility bear interest at per annum rate equal to (i) the Tranche Rate (Term SOFR), (ii) the Daily Simple SOFR rate, or (iii) the Base Rate. In each case a SOFR rate is selected, an applicable margin that varies from 1.85% up to 2.35%, based on our then-current total leverage ratio, is applied. In executing the amendment, we incurred $0.3 million in debt issuance costs which have been recorded in “Other assets” on the consolidated balance sheets as of September 30, 2024. During the year ended September 30, 2024, we made payments on the Credit Facility of $75.0 million and we received proceeds of $41.0 million at a base interest rate of 8.0%. The remaining availability under the Credit Facility as of September 30, 2024 was $69.0 million. In October 2024, we used cash on hand to pay $5.0 million on the Credit Facility, which increased the availability under the Credit Facility to $74.0 million. It is likely that we will borrow from the Credit Facility in future periods based on future working capital or other needs. Avondale Term Loan In connection with the Avondale, Arizona building purchase in December 2020, we entered into a credit agreement with Fifth Third Bank, national banking association (the “Avondale Lender”) on May 12, 2021 in the maximum principal amount of $31.2 million with a maturity of seven years (the “Avondale Term Loan”). Originally, the Avondale Term Loan bore interest at the rate of LIBOR plus 2.0%. On April 3, 2023 in connection with applying the guidance in ASU 2020-04, we executed an amendment for our Avondale Term Loan to convert the stated rate from LIBOR to Term SOFR. As of April 3, 2023, the Avondale Term Loan bears interest at the rate of Term SOFR plus 2.0% and a tranche rate adjustment of 0.046%. Principal and interest payments are due monthly. The Avondale Term Loan is secured by a first priority lien on our Avondale, Arizona property, including all land and improvements. Additionally, we entered into an interest rate swap agreement with the Avondale Lender. See Note 14 below for further discussion on the interest rate swap. Lisle Term Loan On April 14, 2022, our consolidated subsidiary, 2611 Corporate West Drive Venture LLC (the “Borrower”), entered into a new Loan Agreement (“Lisle Loan Agreement”) with Valley National Bank (the “Lisle Lender”), to fund the acquisition and retire the prior loan agreement with Western Alliance bank, via a term loan in the original principal amount of $38.0 million with a maturity of seven years (the “Lisle Term Loan”). The Lisle Term Loan bears interest at a rate of one-month Term SOFR plus 2.0%. The Lisle Term Loan is secured by a mortgage on the Lisle, Illinois campus and is guaranteed by the Company. In connection with the Lisle Term Loan, we entered into an interest rate swap agreement. See Note 14 below for further discussion on the interest rate swap. Debt Covenants We are subject to certain customary affirmative and negative covenants under the Revolving Credit Facility, the Avondale Term Loan and the Lisle Term Loan. As of September 30, 2024, we were in compliance with all debt covenants. Debt Maturities Scheduled principal payments due on our debt for each year through the period ended September 30, 2029, and thereafter were as follows at September 30, 2024:
Maturity |  | Revolving Credit Facility & Term Loans |  | Finance Leases |  | Total
2025 |  | $ | 1,763 |  |  | $ | 934 |  |  | $ | 2,697 |
2026 |  | 1,837 |  |  | 1,029 |  |  | 2,866 |
2027 |  | 57,909 |  |  | 1,131 |  |  | 59,040 |
2028 |  | 26,610 |  |  | 1,239 |  |  | 27,849 |
2029 |  | 33,200 |  |  | 435 |  |  | 33,635 |
2030 and thereafter |  | — |  |  | — |  |  | — |
Subtotal |  | 121,319 |  |  | 4,768 |  |  | 126,087 |
Debt issuance costs presented with debt |  | (383) |  |  | — |  |  | (383) |
Total |  | $ | 120,936 |  |  | $ | 4,768 |  |  | $ | 125,704 |

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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 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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