|
Long-Term Debt
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Mar. 31, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt |
Long-Term Debt
Long-term debt consisted of the following:
Revolving Credit Facility and Senior Secured Notes
Revolving credit facility. On August 7, 2012, Thermon Industries, Inc. and Thermon Canada Inc. terminated their existing revolving credit facility, and entered into a new credit facility agreement with a new syndicate of lenders led by JP Morgan Chase Bank, N.A. as administrative agent. As a result of the termination, we accelerated the remaining $1,447 of unamortized deferred debt costs associated with the prior revolving credit facility, which is included as interest expense. Under the August 2012 revolving credit facility, we had available up to $40,000 of aggregate loans, of which up to $20,000 was available to our Canadian subsidiary, subject to borrowing base availability. In no case shall availability under our revolving credit facility exceed the commitments thereunder. As of March 31, 2013, we had $37,420 of capacity available under our revolving credit facility after taking into account the borrowing base, outstanding loan advances and letters of credit. In addition to our August 2012 revolving credit facility, we have various short term revolving lines of credit available to us at our foreign affiliates. At March 31, 2013, we had no outstanding borrowings under the revolving credit facility. Had there been any outstanding borrowings, the interest rate would have been approximately 3%.
On April 19, 2013, the August 2012 revolving credit facility was amended and restated. See Note 20. "Subsequent Events".
Senior secured notes. As of March 31, 2013, we had $118,145 of aggregate principal amount outstanding of our senior secured notes with annual cash interest expense of approximately $11,224. Our senior secured notes mature on May 1, 2017 and accrue interest at a fixed rate of 9.5%. We pay interest in cash semi-annually on May 1 and November 1 of each year. Our senior secured notes were issued in a Rule 144A exempt senior secured note offering to qualified institutional investors. The proceeds were used to fund the purchase price for the CHS Transactions and related transaction costs. The senior secured notes are secured by all of the assets of the Company.
During fiscal 2013 and 2012, the Company made partial redemptions of the senior secured notes in the amount of $21,000 and $70,855, respectively. In connection with these redemptions, the Company paid early redemption premiums of $630 and $3,825 for fiscal 2013 and fiscal 2012, respectively. As a result of these partial redemptions, we accelerated the amortization of deferred debt cost of $871 and $3,096 for fiscal 2013 and fiscal 2012, respectively. These expenses were included in interest expense for the periods reported.
On May 20, 2013, the Company completed an optional redemption of all outstanding senior secured notes in connection with the amended and restated revolving credit facility in which the Company borrowed $135,000 under a five-year variable rate term loan. See Note 20. "Subsequent Events".
Guarantees; security. The obligations under August 2012 revolving credit facility are guaranteed on a senior secured basis by the Company and each of its existing and future domestic restricted subsidiaries. The obligations under our revolving credit facility are secured by a first priority perfected security interest in substantially all of our and the guarantors’ assets, subject to certain exceptions, permitted liens and encumbrances reasonably acceptable to the administrative agent under our revolving credit facility. Our guarantees are also secured by liens on substantially all of our and the guarantors’ assets, subject to certain exceptions; provided, however, that the liens are contractually subordinated to the liens thereon that secure our revolving credit facility.
Restrictive covenants. The revolving credit facility contains various restrictive covenants that include restrictions or limitations on our ability to: incur additional indebtedness or issue disqualified capital stock unless certain financial tests are satisfied; pay dividends, redeem subordinated debt or make other restricted payments; make certain investments or acquisitions; issue stock of subsidiaries; grant or permit certain liens on our assets; enter into certain transactions with affiliates; merge, consolidate or transfer substantially all of our assets; incur dividend or other payment restrictions affecting certain of our subsidiaries; transfer or sell assets, including capital stock of our subsidiaries; and change the business we conduct. However, all of these covenants are subject to customary exceptions.
Maturities of long-term debt are as follows for the years ended March 31:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||