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Long-Term Debt | 3 Months Ended
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May 31, 2024
Debt Disclosure [Abstract] |
Long-Term Debt | Note 8 - Long-Term Debt A summary of our long-term debt follows:
(in thousands) | May 31, 2024 |  | February 29, 2024
Credit Agreement (1): |  |  |
Revolving loans | $ | 505,900 |  |  | $ | 421,950 |
Term loans | 248,437 |  |  | 250,000 |
Total borrowings under Credit Agreement | 754,337 |  |  | 671,950 |
Unamortized prepaid financing fees | (5,960) |  |  | (6,279) |
Total long-term debt | 748,377 |  |  | 665,671 |
Less: current maturities of long-term debt | (7,031) |  |  | (6,250) |
Long-term debt, excluding current maturities | $ | 741,346 |  |  | $ | 659,421 |
(1)The weighted average interest rates on borrowings outstanding under the Credit Agreement (defined below) inclusive of the impact of our interest rate swaps as of May 31, 2024 and February 29, 2024 were 6.4% and 6.0%, respectively. Capitalized Interest During the three month period ended May 31, 2024, we incurred interest costs totaling $12.5 million, of which none was capitalized, compared to $14.9 million for the same period last year, of which we capitalized $0.9 million 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 aggregate commitments of $1.5 billion, which are available through (i) a $1.0 billion revolving credit facility, which includes a $50 million sublimit for the issuance of letters of credit, (ii) a $250 million term loan facility, and (iii) a committed $250 million delayed draw term loan facility, which may be borrowed in multiple drawdowns until August 15, 2025. Proceeds can be used for working capital and other general corporate purposes, including funding permitted acquisitions. At the closing date, February 15, 2024, we borrowed $457.5 million under the revolving credit facility and $250.0 million under the term loan facility and utilized the proceeds to repay all debt outstanding under our prior credit agreement. The Credit Agreement matures on February 15, 2029. The Credit Agreement includes an accordion feature, which permits the Company to request to increase its borrowing capacity by an additional $300 million plus an unlimited amount when the Leverage Ratio (as defined in the Credit Agreement) on a pro-forma basis is less than 3.25 to 1.00. The term loans are payable at the end of each fiscal quarter in equal installments of 0.625% through February 28, 2025, 0.9375% through February 28, 2026, and 1.25% thereafter of the original principal balance of the term loans, which began in the first quarter of fiscal 2025, with the remaining balance due at the maturity date. 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 1.125% and 1.0% to 2.125% for Base Rate and Term SOFR borrowings, respectively. The floating interest rates on our borrowings under the Credit Agreement are hedged with interest rate swaps to effectively fix interest rates on $300 million and $500 million of the outstanding principal balance under the revolving loans as of May 31, 2024 and February 29, 2024, respectively. See Notes 9, 10, and 11 for additional information regarding our interest rate swaps. As of May 31, 2024, the balance of outstanding letters of credit was $15.6 million and the amount available for revolving loans under the Credit Agreement was $478.5 million. Covenants in the Credit Agreement limit the amount of total indebtedness we can incur. As of May 31, 2024, these covenants effectively limited our ability to incur more than $336.9 million of additional debt from all sources, including the Credit Agreement, or $478.5 million in the event a qualified acquisition is consummated. Debt Covenants As of May 31, 2024, we were in compliance with all covenants as defined under the terms of the Credit Agreement.

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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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