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FINANCING ARRANGEMENTS | 12 Months Ended
--- | ---
Jun. 30, 2013
FINANCING ARRANGEMENTS |
FINANCING ARRANGEMENTS | 7. FINANCING ARRANGEMENTS The Company's long-term debt consists of the following:
|  |  |  | Interest rate % |  |  |  |  |
--- | --- | --- | --- | --- | --- | --- | --- | --- | ---
|  |  |  | Fiscal Years |  | June 30, |
|  | Maturity Dates |  | 2013 |  | 2012 |  | 2013 |  | 2012 |
|  | (fiscal year) |  |  |  |  |  | (Dollars in thousands) |
Senior term notes |  | 2013 |  | 6.69 - 8.50% |  | 6.69 - 8.50% |  | $ | — |  | $ | 111,429 |
Convertible senior notes(1) |  | 2015 |  | 5.00 |  | 5.00 |  |  | 166,454 |  |  | 161,134 |
Revolving credit facility |  | 2018 |  | — |  | — |  |  | — |  |  | — |
Equipment and leasehold notes payable |  | 2015 - 2016 |  | 4.90 - 8.75 |  | 4.90 - 8.75 |  |  | 8,316 |  |  | 14,780 |
Other notes payable |  | 2013 |  | 5.75 - 8.00 |  | 5.75 - 8.00 |  |  | — |  |  | 331 |
|  |  |  |  |  |  |  |  | 174,770 |  |  | 287,674 |
Less current portion(1) |  |  |  |  |  |  |  |  | (173,515 | ) |  | (28,937 | )
Long-term portion |  |  |  |  |  |  |  | $ | 1,255 |  | $ | 258,737 |
(1) On or after April 15, 2014, holders may convert each of their senior convertible notes at their option at any time prior to the July 10, 2014 maturity date. As a result, the Company has included the convertible senior notes within long-term debt, current portion on the Consolidated Balance Sheet. The debt agreements contain covenants, including limitations on incurrence of debt, granting of liens, investments, merger or consolidation, and transactions with affiliates. In addition, the Company must adhere to specified fixed charge coverage and leverage ratios. The Company was in compliance with all covenants and other requirements of our financing arrangements as of June 30, 2013. Aggregate maturities of long-term debt, including associated capital lease obligations of $8.3 million at June 30, 2013, are as follows:
Fiscal year |  | (Dollars in thousands) |
--- | --- | --- | ---
2014 |  | $ | 173,515 |
2015 |  |  | 1,253 |
2016 |  |  | 2 |
2017 |  |  | — |
2018 |  |  | — |
Thereafter |  |  | — |
|  | $ | 174,770 |
Senior Term Notes Private Shelf Agreement During fiscal year 2013, the Company prepaid $89.3 million of unsecured, fixed rate, senior term notes outstanding under a private shelf agreement. As a result of the prepayment, the Company incurred a make-whole payment of $10.6 million that was recorded in interest expense within the Consolidated Statement of Operations. Convertible Senior Notes In July 2009, the Company issued $172.5 million aggregate principal amount of 5.0 percent convertible senior notes due July 2014. The notes are unsecured, senior obligations of the Company and interest is payable semi-annually in arrears on January 15 and July 15 of each year at a rate of 5.0 percent per year. As of June 30, 2013, the notes are convertible at a conversion rate of 65.4357 shares of the Company's common stock per $1,000 principal amount of notes, representing a conversion price of approximately $15.28 per share of the Company's common stock. Holders may convert their notes at their option prior to April 15, 2014 if the Company's stock price meets certain price triggers or upon the occurrence of specified corporate events as defined in the convertible senior note agreement. On or after April 15, 2014, holders may convert each of their notes at their option at any time prior to the maturity date of the notes. The Company has the choice of net-cash settlement, settlement in its own shares or a combination thereof and concluded the conversion option is indexed to its own stock. As a result, the Company allocated $24.7 million of the $172.5 million principal amount of the convertible senior notes to equity, which resulted in a $24.7 million debt discount. The $24.7 million debt discount is being amortized over the period the convertible senior notes are expected to be outstanding, which is five years, as additional non-cash interest expense. The combined debt discount amortization and the contractual interest coupon resulted in an effective interest rate on the convertible debt of 8.9 percent. The following table provides equity and debt information for the convertible senior notes:
|  | June 30, |
--- | --- | --- | ---
|  | 2013 |  | 2012 |
|  | (Dollars in thousands) |
Principal amount on the convertible senior notes |  | $ | 172,500 |  | $ | 172,500 |
Unamortized debt discount |  |  | (6,046 | ) |  | (11,366 | )
Net carrying amount of convertible debt |  | $ | 166,454 |  | $ | 161,134 |
The following table provides interest rate and interest expense amounts related to the convertible senior notes:
|  | Fiscal Years |
--- | --- | --- | ---
|  | 2013 |  | 2012 |
|  | (Dollars in thousands) |
Interest cost related to contractual interest coupon—5.0% |  | $ | 8,625 |  | $ | 8,625 |
Interest cost related to amortization of the discount |  |  | 5,320 |  |  | 4,886 |
Total interest cost |  | $ | 13,945 |  | $ | 13,511 |
Revolving Credit Facility On June 11, 2013, the Company amended its $400.0 million unsecured revolving credit facility agreement, which now expires in June 2018. The revolving credit facility has rates tied to a LIBOR credit spread and a quarterly facility fee on the average daily amount of the facility (whether used or unused). Both the LIBOR credit spread and the facility fee are based on the Company's debt to EBITDA ratio at the end of each fiscal quarter. In addition, the Company may request an increase in revolving credit commitments under the facility of up to $200.0 million under certain circumstances. Events of default under the Credit Agreement include change of control of the Company and the Company's default with respect to other debt exceeding $10.0 million. As of June 30, 2013 and 2012, the Company had no outstanding borrowings under this revolving credit facility. Additionally, the Company had outstanding standby letters of credit under the revolving credit facility of $2.2 and $26.1 million at June 30, 2013 and 2012, respectively, primarily related to its self-insurance program. Unused available credit under the facility at June 30, 2013 and 2012 was $397.8 and $373.9 million, respectively. The decrease in the outstanding standby letters of credit was due to the Company using $24.5 million of restricted cash to collateralize its self-insurance program during the fiscal year 2013, enabling the Company to reduce fees associated with the standby letters of credit. Equipment and Leasehold Notes Payable The equipment and leasehold notes payable are primarily comprised of capital lease obligations. In September 2011, the Company entered into an agreement to refinance existing capital leases to a three year term with a contract rate of 4.9 percent. As of June 30, 2013 the capital lease balance was $8.3 million and will be amortized at the historical rate of 9.2 percent. There was no gain or loss recorded on the refinance. The Company entered into the refinancing to reduce cash interest payments. Other Notes Payable The Company had $0.3 million in unsecured outstanding notes at June 30, 2012, related to debt assumed in acquisitions.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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