v3.25.1
Debt
 6 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
4. DEBT
Prior to January 21, 2025, we were a party to the Third Amended and Restated Credit and Security Agreement (the “Third Credit Agreement”), which provided for a maximum borrowing amount of $150,000 under our revolving credit facility. Borrowings were limited by a borrowing base determined based on available collateral. The Third Credit Agreement, which was scheduled to mature on September 30, 2026, contained customary affirmative, negative and financial covenants.
Fourth Amended and Restated Credit and Security Agreement
On January 21, 2025 we entered into the Fourth Amended and Restated Credit Agreement (the “Amended Credit Agreement”). Pursuant to the Amended Credit Agreement, our revolver amount increased from $150,000 to $300,000, and the maturity date was extended from September 30, 2026, to January 21, 2030. In addition, the limitation on borrowings based on available collateral was eliminated under the Amended Credit Agreement.
Under the Amended Credit Agreement, the Company is subject to certain financial covenants including a maximum Consolidated Total Leverage Ratio (as defined in the Amended Credit Agreement) of 3.00 to 1.00 and a minimum Consolidated Interest Coverage Ratio (as defined in the Amended Credit Agreement) of 3.00 to 1.00. As of March 31, 2025, the Company was in compliance with the financial covenants under the Amended Credit Agreement.
At March 31, 2025 and September 30, 2024, we had no outstanding borrowings under our revolving credit facility. At March 31, 2025, we had $5,545 in outstanding letters of credit and total availability of $294,455 under our revolving credit facility.
Amounts outstanding bear interest at a rate equal to either (1) the Base Rate (which is the greater of the Federal Funds Rate (as defined in the Amended Credit Agreement) and the Prime Rate (as defined in the Amended Credit Agreement)), (2) the Daily Simple SOFR (as defined in the Amended Credit Agreement) or (3) Term SOFR (as defined in the Amended Credit Agreement), plus, in each case,
an interest rate margin, which is determined quarterly based on our Consolidated Total Leverage Ratio, in accordance with the following thresholds:
Pricing LevelConsolidated Total Leverage RatioInterest Margin applicable to Daily Simple SOFR/Term SOFRInterest Margin applicable to Base Rate
I
Greater than or equal to 2.50 to 1.00
2.25 percentage points
1.25 percentage points
II
Greater than or equal to 1.75 to 1.00, but less than 2.50 to 1.00
2.00 percentage points
1.00 percentage points
III
Greater than or equal to 1.00 to 1.00, but less than 1.75 to 1.00
1.75 percentage points
0.75 percentage points
IV
Less than 1.00 to 1.00
1.50 percentage points
0.50 percentage points
In addition, we are charged monthly in arrears for an unused commitment fee of 0.25% to 0.35% per annum on any unused portion of the revolving credit facility based on the Company's Consolidated Total Leverage Ratio.
The Amended Credit Agreement restricts certain types of transactions when the Company’s Consolidated Total Leverage Ratio, after giving pro forma effect thereto, exceeds 2.75 to 1.00. The Amended Credit Agreement continues to contain other customary affirmative and negative covenants as well as events of default.