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Long-Term Debt
 3 Months Ended
May 31, 2023
Debt Disclosure [Abstract]  
Long-Term Debt
Note 9 - Long-Term Debt
A summary of our long-term debt follows:
(in thousands)May 31, 2023February 28, 2023
Credit Agreement (1):
Revolving loans594,000 690,000 
Term loans245,312 246,875 
Total borrowings under Credit Agreement839,312 936,875 
Unamortized prepaid financing fees(2,155)(2,463)
Total long-term debt837,157 934,412 
Less: current maturities of long-term debt(6,235)(6,064)
Long-term debt, excluding current maturities$830,922 $928,348 
(1)The weighted average interest rates on borrowings outstanding under the Credit Agreement (defined below) as of May 31, 2023 and February 28, 2023 were 6.8% and 6.6%, respectively.

Capitalized Interest

During the three month periods ended May 31, 2023 and 2022, we incurred interest costs totaling $14.9 million and $5.1 million, respectively, of which we capitalized $0.9 million and $0.7 million, respectively, as part of property and equipment in connection with the construction of a new distribution facility.
Credit Agreement

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 $1.25 billion and a $300 million accordion, which can be used for term loan commitments. In June 2022, we exercised $250 million of the $300 million accordion under the Credit Agreement and borrowed $250 million as term loans. The proceeds from the term loans were used to repay revolving loans under the Credit Agreement. The term loans are payable at the end of each fiscal quarter in equal installments of 0.625% of the term loans made, which began in the third quarter of fiscal 2023, with the remaining balance due at the maturity date. The maturity date of the term loans and the revolving loans under the Credit Agreement is March 13, 2025. Borrowings under the Credit Agreement bear floating interest at either the Base Rate or Term SOFR (as defined in the Credit Agreement), plus a margin based on the Net Leverage Ratio (as defined in the Credit Agreement) of 0% to 1.0% and 1.0% to 2.0% for Base Rate and Term SOFR borrowings, respectively, plus a credit spread of 0.10% for Term SOFR borrowings.

The floating interest rates on our borrowings under the Credit Agreement are hedged with interest rate swaps to effectively fix interest rates on $625 million and $425 million of the outstanding principal balance under the revolving loans as of May 31, 2023 and February 28, 2023, respectively. See Notes 10, 11, and 12 for additional information regarding our interest rate swaps.

As of May 31, 2023, the balance of outstanding letters of credit was $18.2 million and the amount available for revolving loans under the Credit Agreement was $637.8 million. Covenants in the Credit Agreement limit the amount of total indebtedness we can incur. As a result of our exercise of a qualified acquisition notice under the Credit Agreement, as of May 31, 2023, these covenants effectively limited our ability to incur more than $343.0 million of additional debt from all sources, including the Credit Agreement.

Debt Covenants

As of May 31, 2023, we were in compliance with all covenants as defined under the terms of the Credit Agreement.