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LONG-TERM DEBT

12 Months Ended

Feb. 29, 2012

LONG-TERM DEBT.

LONG-TERM DEBT

NOTE 9 - LONG-TERM DEBT

A summary of long-term debt is as follows:

LONG-TERM DEBT

(dollars in thousands)

Original

Date

Interest

February 29,

February 28,

Borrowed

Rates

Matures

2012

2011

$15 million unsecured Senior Note payable at a fixed interest rate of 7.24%. Interest payable quarterly. Annual principal payments of $3 million began in July 2008.

07/97

7.24%

07/12

3,000

6,000

$50 million unsecured floating interest rate 7 year Senior Notes. Interest set and payable quarterly at three-month LIBOR plus 85 basis points. Principal is due at maturity. Notes can be prepaid without penalty. (1)

06/04

5.89%

06/11

50,000

$75 million unsecured floating interest rate 10 year Senior Notes. Interest set and payable quarterly at three-month LIBOR plus 90 basis points. Principal is due at maturity. Notes can be prepaid without penalty. (1)

06/04

6.01%

06/14

75,000

75,000

$100 million unsecured Senior Notes payable at a fixed interest rate of 3.90%. Interest payable semi-annually. Annual principal payments of $20 million begin in January 2014. Prepayment of notes are subject to a “make whole” premium.

01/11

3.90%

01/18

100,000

100,000

Total long-term debt

178,000

231,000

Less current maturities of long-term debt

(3,000

)

(53,000

)

Long-term debt, excluding current maturities

175,000

178,000

(1) Floating interest rates have been hedged with an interest rate swap to effectively fix interest rates. Additional information regarding the swap is provided in Note (12) to these consolidated financial statements.

The fair market value of the fixed rate debt at February 29, 2012 computed using a discounted cash flow analysis was $104.45 million compared to the $103.00 million book value and represents a Level 2 liability. All other long-term debt has floating interest rates, and its book value approximates its fair value at February 29, 2012.

All of our debt is unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries. Our debt agreements require the maintenance of financial covenants, including a maximum leverage ratio (as that term is defined in the various agreements), a minimum interest coverage ratio (as defined in the various agreements) and a minimum consolidated net worth (as defined in the various agreements). Additionally, our debt agreements contain other customary covenants, including, among other things, covenants restricting the Company, except under certain conditions set forth therein, from (1) incurring debt, (2) incurring liens on any of its properties, (3) making certain types of investments, (4) selling certain assets or making other fundamental changes relating to mergers and consolidations, and (5) limit our ability to repurchase shares of our common stock and pay dividends.

As of February 29, 2012, our debt agreements effectively limited our ability to incur more than $254.40 million of additional debt from all sources, including the 2010 RCA. We were in compliance with the terms of these agreements as of February 29, 2012.

The following table contains a summary of the components of our interest expense for the periods covered by our consolidated statements of income:

INTEREST EXPENSE

(in thousands)

	Fiscal Years Ended the Last Day of February,
	2012		2011		2010

Interest and commitment fees	$	7,670	$	3,268	$	3,468
Deferred finance costs	823		428		332
Interest rate swap settlements, net	4,424		5,997		6,510
Total interest expense	$	12,917	$	9,693	$	10,310

The line entitled “Deferred finance costs” includes the fiscal 2011 write-off of $0.09 million of unamortized deferred finance fees associated with the termination of a prior credit agreement.