Long Term Debt

We have a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provides for an unsecured total revolving commitment of $1.0 billion as of February 28, 2019. The commitment under the Credit Agreement terminates on December 7, 2021. Borrowings accrue interest under one of two alternative methods (based upon a base rate or LIBOR) as described in the Credit Agreement. With each borrowing against our credit line, we can elect the interest rate method based on our funding needs at the time. We also incur loan commitment and letter of credit fees under the Credit Agreement. Outstanding letters of credit reduce the borrowing availability under the Credit Agreement on a dollar-for-dollar basis. As of February 28, 2019, the outstanding revolving loan principal balance was $301.2 million (excluding prepaid financing fees) and the balance of outstanding letters of credit was $9.0 million. As of February 28, 2019, the amount available for borrowings under the Credit Agreement was $689.8 million. Covenants in our debt agreements limit the amount of total indebtedness we can incur. As of February 28, 2019 these covenants effectively limited our ability to incur more than $548.4 million of additional debt from all sources, including our Credit Agreement, or $689.8 million in the event a qualified acquisition is consummated.

A summary of our long-term debt follows:



(dollars in thousands)	Original Date Borrowed	Interest Rates	Matures	February 28, 2019			February 28, 2018
Mississippi Business Finance Corporation Loan (the "MBFC Loan") ⁽¹⁾	03/13	Floating	03/23	$	22,335		$	24,219
Credit Agreement ⁽²⁾	01/15	Floating	12/21	298,449			265,650
Total long-term debt				320,784			289,869
Less current maturities of long-term debt				(1,884		)	(1,884		)
Long-term debt, excluding current maturities				$	318,900		$	287,985

(1)

The MBFC Loan is unsecured with an original balance of $37.6 million and incurs floating interest based on applicable LIBOR plus a margin of up to 2.0% , or a base rate plus a margin of up to 1.0%, as determined by the interest rate elected and the Leverage Ratio. The loan is subject to holder’s call on or after March 1, 2018. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2019 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023.


(2)	Floating interest rates are hedged with an interest rate swap to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement. Notes 15 and 16 to these consolidated financial statements provide additional information regarding the interest rate swap.

At February 28, 2019 and 2018, our long-term debt has floating interest rates, and its book value approximates its fair value.

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 certain financial covenants, including maximum leverage ratios, minimum interest coverage ratios and minimum consolidated net worth levels (as each of these terms is defined in the various agreements). Our debt agreements also contain other customary covenants. We were in compliance with the terms of these agreements as of February 28, 2019.

The following table contains information about interest rates on our Credit Agreement and the related weighted average borrowings outstanding for the periods covered by our consolidated statements of income:



	Fiscal Years Ended February 28,
(in thousands)	2019			2018			2017
Average borrowings outstanding ⁽¹⁾	$	290,860		$	382,960		$	498,420
Average interest rate during each year ⁽²⁾	3.2		%	2.7		%	2.2		%
Interest rate range during each year	2.8% - 5.5%			2.3 - 4.8%			1.9 - 4.3%
Weighted average interest rates on borrowings outstanding at year end	3.6		%	2.9		%	2.3		%


(1)	Average borrowings outstanding is computed as the average of the current and four prior quarters ending balances of our credit facility.


(2)	The average interest rate during each year is computed by dividing the total interest expense associated with the Credit Agreement for a fiscal year by the average borrowings outstanding for the same fiscal year.

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



	Fiscal Years Ended February 28,
(in thousands)	2019			2018			2017
Interest and commitment fees	$	11,366		$	13,084		$	13,745
Deferred finance costs	1,015			887			706
Interest rate swap settlements, net	(515		)	54			—
Cross-currency debt swap	(147		)	(74		)	(90		)
Total interest expense	$	11,719		$	13,951		$	14,361