XML 30 R14.htm IDEA: XBRL DOCUMENT v3.21.2
Debt
 12 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
DEBT INDEBTEDNESS
On March 15, 2021, we entered into an amended and restated credit agreement with BMO Harris Bank N.A. ("BMO"). This agreement provides us with a senior secured credit facility (the "Credit Facility") consisting of a $200 million revolving loan (the "Revolving Loan"). This loan replaced our syndicated senior secured credit agreement with BMO that was entered into on December 13, 2019 and replaced the remaining balance of our term loan with this new revolver. This prior agreement provided us with committed credit facilities ("Prior Credit Facility") totaling $150 million, which included a $50 million term loan and a $100 million revolving loan. We may use the Revolving Loan for working capital, capital expenditures, restricted payments and acquisitions permitted under the agreement.
Borrowings under the Credit Facility bear a variable interest rate of LIBOR plus an applicable margin spread from 1.25% to 3.25%. The amount of the applicable margin spread is a function of our leverage ratio and is reset monthly. In addition to paying interest on the outstanding balance under the Credit Facility, we are required to pay a commitment fee on the non-utilized commitments thereunder which is also reported in interest expense. Our weighted average interest rate at September 30, 2021 was 1.34%.
The debt issuance costs under the Prior Credit Facility totaled $2.6 million and is being amortized using the straight-line method over the term of the loan and reported in interest expense. The credit facility amendment was determined to be a modification so the existing costs will continue to be amortized over the term of the new facility. The balance remaining at September 30, 2021 was $2.3 million.
The Revolving Loan is due in a lump sum payment at maturity on March 15, 2026. The fair value of the Revolving Loan approximated carrying value at September 30, 2021.
On November 1, 2021, Digi entered into a second amended and restated credit agreement consisting of a $350 million term loan B secured loan and a $35 million revolving credit facility (See Note 17).
7. INDEBTEDNESS (CONTINUED)
The following table is a summary of our long-term indebtedness (in thousands):
As of September 30,
20212020
Revolving loan$48,118 $15,000 
Term loan— 48,125 
Total loans48,118 63,125 
Less unamortized issuance costs(2,319)(2,173)
Less current maturities of long-term debt— (1,972)
Total long-term debt, net of current portion$45,799 $58,980 


The following table is a summary of future maturities of our aggregate long-term debt at September 30, 2021 (in thousands):
Fiscal yearAmount
2022$— 
2023— 
2024— 
2025— 
202648,118 
Total long-term debt$48,118 
Covenants and Security Interest
The agreements governing the Credit Facility contain a number of covenants. Among other thing, these covenants require us to maintain certain financial ratios (net leverage ratio and minimum fixed charge ratio). At September 30, 2021, we were in compliance with our debt covenants. Amounts borrowed under the Credit Facility are secured by substantially all of our assets.