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v3.22.2.2

DEBT (Tables) | 3 Months Ended
--- | ---
Sep. 30, 2022
Debt Disclosure [Abstract] |
Schedule of debt | The Company’s debt balances consisted of the following as of September 30, 2022 and June 30, 2022, respectively:
| September 30, 2022 |  | June 30, 2022
Short-term debt | $ | — |  |  | $ | — |
Senior Secured Notes |  |  |
2026 Dollar Senior Secured Notes due April 2026 | 900.0 |  |  | 900.0 |
2026 Euro Senior Secured Notes due April 2026 | 686.4 |  |  | 731.8 |
2029 Dollar Senior Secured Notes due January 2029 | 500.0 |  |  | 500.0 |
2018 Coty Credit Agreement |  |  |
2021 Coty Revolving Credit Facility due April 2025 | 279.5 |  |  | 273.6 |
2018 Coty Term B Facility due April 2025 | 1,203.7 |  |  | 1,239.2 |
Senior Unsecured Notes |  |  |
2026 Dollar Notes due April 2026 | 550.0 |  |  | 550.0 |
2026 Euro Notes due April 2026 | 245.1 |  |  | 261.4 |
Brazilian Credit Facilities | 42.4 |  |  | 42.4 |
Other long-term debt and capital lease obligations | — |  |  | 0.1 |
Total debt | 4,407.1 |  |  | 4,498.5 |
Less: Short-term debt and current portion of long-term debt | (32.7) |  |  | (23.0) |
Total Long-term debt | 4,374.4 |  |  | 4,475.5 |
Less: Unamortized financing fees | (39.0) |  |  | (41.8) |
Less: Discount on long-term debt | (22.6) |  |  | (24.6) |
Total Long-term debt, net | $ | 4,312.8 |  |  | $ | 4,409.1 |
Schedule of debt instrument redemption | At any time on or after the Early Redemption Dates, the Company may redeem some or all of the respective notes at the redemption prices (expressed in percentage of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates, if redeemed during the twelve-month period beginning on respective dates of each of the years indicated below:
| Price
For the period beginning | 2026 Dollar Senior Secured Notes |  | 2026 Euro Senior Secured Notes |  | 2029 Dollar Senior Secured Notes
Year | April 15, |  | January 15,
2023 | 102.500% |  | 101.938% |  | N/A
2024 | 101.250% |  | 100.969% |  | N/A
2025 | 100.000% |  | 100.000% |  | 102.375%
2026 | N/A |  | N/A |  | 101.188%
2027 and thereafter | N/A |  | N/A |  | 100.000%
Summary total net leverage ratio requirement | In the case of the 2021 Coty Revolving Credit Facility, the applicable margin means the lesser of a percentage per annum to be determined in accordance with the leverage-based pricing grid and the debt rating-based grid below:
Pricing Tier |  | Total Net Leverage Ratio: |  | LIBOR plus: |  | Alternative Base Rate Margin:
1.0 |  | Greater than or equal to 4.75:1 |  | 2.000% |  | 1.000%
2.0 |  | Less than 4.75:1 but greater than or equal to 4.00:1 |  | 1.750% |  | 0.750%
3.0 |  | Less than 4.00:1 but greater than or equal to 2.75:1 |  | 1.500% |  | 0.500%
4.0 |  | Less than 2.75:1 but greater than or equal to 2.00:1 |  | 1.250% |  | 0.250%
5.0 |  | Less than 2.00:1 but greater than or equal to 1.50:1 |  | 1.125% |  | 0.125%
6.0 |  | Less than 1.50:1 |  | 1.000% |  | —%
Pricing Tier |  | Debt Ratings S&P/Moody’s: |  | LIBOR plus: |  | Alternative Base Rate Margin:
5.0 |  | Less than BB+/Ba1 |  | 2.000% |  | 1.000%
4.0 |  | BB+/Ba1 |  | 1.750% |  | 0.750%
3.0 |  | BBB-/Baa3 |  | 1.500% |  | 0.500%
2.0 |  | BBB/Baa2 |  | 1.250% |  | 0.250%
1.0 |  | BBB+/Baa1 or higher |  | 1.125% |  | 0.125%
The 2018 Coty Credit Agreement contains affirmative and negative covenants. The negative covenants include, among other things, limitations on debt, liens, dispositions, investments, fundamental changes, restricted payments and affiliate transactions. With certain exceptions as described below, the 2018 Coty Credit Agreement, as amended, includes a financial covenant that requires us to maintain a Total Net Leverage Ratio (as defined below), equal to or less than the ratios shown below for each respective test period.
Quarterly Test Period Ending |  |  | Total Net Leverage Ratio (a)
September 30, 2022 |  |  | 4.50 to 1.00
December 31, 2022 |  |  | 4.25 to 1.00
March 31, 2023 through April 5, 2025 |  |  | 4.00 to 1.00
(a) Total Net Leverage Ratio means, as of any date of determination, the ratio of: (a) (i) Total Indebtedness minus (ii) unrestricted and Cash Equivalents of the Parent Borrower and its Restricted Subsidiaries as determined in accordance with GAAP to (b) Adjusted EBITDA for the most recently ended Test Period (each of the defined terms, including Adjusted EBITDA, used within the definition of Total Net Leverage Ratio have the meanings ascribed to them within the 2018 Coty Credit Agreement, as amended). Adjusted EBITDA, as defined in the 2018 Coty Credit Agreement, as amended, includes certain add backs related to cost savings, unusual events such as COVID-19, operating expense reductions and future unrealized synergies subject to certain limits and conditions as specified in the 2018 Coty Credit Agreement, as amended.
Schedule of line of credit facilities | Fair Value of Debt
| September 30, 2022 |  | June 30, 2022
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Senior Secured Notes | $ | 2,086.4 |  |  | $ | 1,868.9 |  |  | $ | 2,131.8 |  |  | $ | 1,914.1 |
2018 Coty Credit Agreement | 1,483.2 |  |  | 1,430.7 |  |  | 1,512.8 |  |  | 1,451.5 |
Senior Unsecured Notes | 795.1 |  |  | 719.0 |  |  | 811.4 |  |  | 733.5 |
Brazilian Credit Facilities | 42.4 |  |  | 45.9 |  |  | 42.4 |  |  | 48.2 |
Schedule of maturities of long-term debt | Aggregate maturities of the Company’s long-term debt, including the current portion of long-term debt and excluding capital lease obligations as of September 30, 2022, are presented below:
Fiscal Year Ending June 30, |
2023, remaining | $ | 16.7 |
2024 | 64.7 |
2025 | 1,444.2 |
2026 | 2,381.5 |
2027 | — |
Thereafter | 500.0 |
Total | $ | 4,407.1 |

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