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Debt
 3 Months Ended
Sep. 30, 2024
Debt [Abstract]  
Debt

Note (6) – Debt: Long-term debt as of September 30, 2024 and June 30, 2024 are as follows (in thousands):

 

   September 30,
2024		  June 30,
2024
Revolving credit facility  $20,000   $13,000 
Less: unamortized discount and deferred financing costs   (88)   (97)
Total long-term debt, net  $19,912   $12,903 

 

The Company is party, as borrower, to a syndicated credit agreement (the “Credit Agreement”) which allows for borrowings in the maximum aggregate principal amount of up to $100 million, with an accordion feature to increase the revolving credit facility by up to $40 million for a total of $140 million. A portion of the revolving credit facility is available for swingline loans of up to a sublimit of $5 million and for the issuance of standby letters of credit of up to a sublimit of $10 million. As of September 30, 2024, borrowings (other than swingline loans) under the Credit Agreement bore interest, at a rate, at the Company’s election at the time of borrowing, equal to (a) the Bloomberg Short-Term Bank Yield Index rate (the “BSBY rate”) plus a margin that ranges between 1.25% and 1.75% depending on the Company’s consolidated leverage ratio, which is a ratio of consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (the “Consolidated Leverage Ratio”) or (b) the highest of (i) prime, (ii) the federal funds rate plus 50 basis points, and (iii) the BSBY rate plus 100 basis points (such highest rate, the “Base Rate”), plus a margin that ranged between 0.25% and 0.75% depending on the Consolidated Leverage Ratio. Swingline loans generally bore interest at the Base Rate plus a margin that ranges between 0.25% and 0.75% depending on the Consolidated Leverage Ratio. As previously disclosed, pursuant to the terms of the Credit Agreement, in connection with the discontinuation of the BSBY rate, the BSBY rate was to be replaced, when determined by the administrative agent under the Credit Agreement, with the Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment ranging from a minimum of 0.11% to a maximum of 0.43%. Such replacement occurred during October 2024. The maturity date of the Credit Agreement is May 6, 2027. As of September 30, 2024, the Company had approximately $20.0 million of outstanding borrowings under the Credit Agreement, which accrued interest at a weighted average rate of 6.40%.

 

The Credit Agreement contains certain covenants, including financial covenants requiring the Company to comply with maximum leverage ratios and minimum interest coverage ratios. The Credit Agreement also contains other provisions which may restrict the Company’s ability to, among other things, dispose of or acquire assets or businesses, incur additional indebtedness, make certain investments and capital expenditures, pay dividends, repurchase shares and enter into transactions with affiliates. At September 30, 2024, the Company was in compliance with its covenants under the Credit Agreement and $64.6 million was available to borrow under the revolving credit facility.

 

The obligations of the Company under the Credit Agreement are secured by substantially all of the assets of the Company and certain of its subsidiaries, and are guaranteed, jointly and severally, by certain of the Company’s subsidiaries.

 

The carrying value of the Company’s long-term debt reported in the condensed consolidated balance sheets herein approximates its fair value since it bears interest at variable rates approximating market rates.