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FINANCING ARRANGEMENTS | 9 Months Ended
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Mar. 31, 2025
Debt Disclosure [Abstract] |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS: The Company's debt consists of the following:
|  | Three Months Ended March 31, 2025 |  | Fiscal Year |  | Balance at March 31, 2025 |  | Balance at June 30, 2024 |
|  |  | 2024 |  |  |
|  | (Average cash interest rate %) |  | (Dollars in thousands) |
Term loan |  | 8.83% |  | 9.68% |  | $ | 119,175 |  |  | $ | 105,000 |  |
Paid-in-kind interest |  |  |  |  |  | 3,923 |  |  | 53 |  |
Deferred financing fees |  |  |  |  |  | (12,886) |  |  | (14,244) |  |
Term loan, net |  |  |  |  |  | 110,212 |  |  | 90,809 |  |
Revolving credit facility |  | 8.83% |  | 9.68% |  | 4,326 |  |  | 10,237 |  |
Fair value of warrants issued to lenders |  |  |  |  |  | (2,528) |  |  | (1,501) |  |
Total long-term debt, net |  |  |  |  |  | $ | 112,010 |  |  | $ | 99,545 |  |
In June 2024, the Company entered into a new credit agreement (the 2024 Credit Agreement). The 2024 Credit Agreement includes a $105.0 million term loan and a $25.0 million revolving credit facility, with a $10.0 million minimum liquidity covenant and matures June 24, 2029. The Company incurred $14.2 million of refinancing fees (including $3.9 million of Original Issue Discount fee) that will be amortized on a straight-line basis over the term of the agreement. As of March 31, 2025, the Company had outstanding standby letters of credit under the revolving credit facility of $9.3 million, primarily related to the Company's self-insurance program. As of March 31, 2025, total available liquidity and available credit under the $25.0 million revolving credit facility, as defined by the 2024 Credit Agreement Amendment, were $19.0 million and $15.7 million, respectively. The interest rate on the 2024 Credit Agreement is based on the secured overnight financing rate (SOFR) plus margin. The margin applicable to the 2024 Credit Agreement is subject to change based on the Company's total leverage ratio, remeasured annually on a predetermined date set by the lender. When the Company's total leverage ratio is greater than or equal to 3.75 to 1.00, the margin applicable to the term loan and revolving credit facility is 9.00%. If the Company's leverage ratio is less than 3.75 to 1.00, the margin rate is 8.50%. In either scenario, 4.50% of the margin is paid-in-kind (PIK) interest (added to the principal balance and thereafter accruing interest), and the remainder is paid in cash. The SOFR base rate applicable to the debt has a floor of 2.50% per annum. The margin applicable to any letter of credit is 5.25% and paid in cash. The agreement contains typical provisions and financial covenants regarding maximum leverage and minimum fixed-charge coverage and a minimum liquidity threshold of $10.0 million. In connection with the 2024 Credit Agreement, the Company issued detachable stock warrants to the debt lenders. The Company was in compliance with its covenants and other requirements of the financing arrangements as of March 31, 2025. The Company's assets serve as collateral to the credit facility. The agreement includes scheduled payments totaling $1.1 million in fiscal years 2025 and 2026, payable quarterly. In fiscal years 2027, 2028, and 2029, scheduled payments total $2.6 million. Additionally, excess cash is swept annually per terms of the agreement. On December 19, 2024, the Company amended the 2024 Credit Agreement (the 2024 Credit Agreement Amendment) for an additional $15.0 million in long-term debt in the form of a term loan. In connection with this 2024 Credit Agreement Amendment, the Company issued warrants as discussed in Note 4. The term loan was provided on the same terms as the original term loan, with respect to maturity and interest rate margins. The $15.0 million in proceeds were used as consideration for the Alline Acquisition. The Company incurred $0.4 million of Original Issue Discount fee that will be amortized on a straight-line basis over the term of the agreement. As of March 31, 2025, the Company had cash and cash equivalents of $13.3 million and current liabilities of $101.0 million.

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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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