v3.26.1
Long-Term Debt
 3 Months Ended
May 31, 2026
Debt Disclosure [Abstract]  
Long-Term Debt
Note 9 - Long-Term Debt

A summary of our long-term debt follows:
(in thousands)May 31, 2026February 28, 2026
Credit Agreement (1):
Revolving loans$249,380 $308,200 
Term loans471,094 477,344 
Total borrowings under Credit Agreement720,474 785,544 
Unamortized prepaid financing fees(4,327)(4,733)
Total long-term debt716,147 780,811 
Less: current maturities of long-term debt(25,000)(25,000)
Long-term debt, excluding current maturities$691,147 $755,811 
(1)The weighted average interest rates on borrowings outstanding under the Credit Agreement (defined below) inclusive of the impact of our interest rate swaps as of May 31, 2026 and February 28, 2026 were 5.6% and 5.7%, respectively.

Credit Agreement

We have an amended credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provides for aggregate commitments of $1.25 billion, which are available through (i) a $750 million revolving credit facility, which includes a $50 million sublimit for the issuance of letters of credit, (ii) a $250 million term loan facility, and (iii) a $250 million delayed draw term loan facility. Proceeds can be used for working capital and other general corporate purposes, including funding permitted acquisitions. During the first quarter of fiscal 2026, we borrowed $250.0 million under the delayed draw term loan facility and utilized the proceeds to repay debt outstanding under the revolving credit facility. During the first quarter of fiscal 2026, we capitalized $0.4 million of lender fees and a de minimis amount of third-party fees incurred in connection with the delayed draw term loan facility borrowing, which were recorded as prepaid financing fees in long-term debt. The Credit Agreement matures on February 15, 2029. The Credit Agreement includes an accordion feature, which permits the Company to request to increase its borrowing capacity by an additional $300 million plus an
unlimited amount when the Leverage Ratio (as defined in the Credit Agreement), on a pro-forma basis, is less than 3.25 to 1.00. The term loans and delayed draw term loans are currently payable at the end of each fiscal quarter in equal installments of 1.25% of the original principal balance, with the remaining balance due at the maturity date. Borrowings under the Credit Agreement bear floating interest at either the Base Rate or Term SOFR (as defined in the Credit Agreement), plus a margin based on the Net Leverage Ratio (as defined in the Credit Agreement) of 0% to 1.375% and 1.0% to 2.375% for Base Rate and Term SOFR borrowings, respectively. We also incur loan commitment and letter of credit fees under the Credit Agreement ranging from 0.1% to 0.45% per annum and 1.0% to 2.375% per annum, respectively, based on our Net Leverage Ratio.

The floating interest rates on our borrowings under the Credit Agreement are hedged with interest rate swaps to effectively fix interest rates on $425 million and $325 million of the outstanding principal balance under the Credit Agreement as of May 31, 2026 and February 28, 2026, respectively. The weighted average interest rate on borrowings hedged with interest rate swaps was 3.3% as of both May 31, 2026 and February 28, 2026. The Term SOFR interest rates as of May 31, 2026 and February 28, 2026 were 3.6% and 3.7%, respectively. See Notes 10, 11, and 12 for additional information regarding our interest rate swaps.

As of May 31, 2026, the balance of outstanding letters of credit was $9.5 million, the amount available for revolving loans under the Credit Agreement was $491.2 million, and the amount available per the maximum Leverage Ratio was $168.5 million. Covenants in the Credit Agreement limit the amount of total indebtedness we can incur. As of May 31, 2026, these covenants effectively limited our ability to incur more than $168.5 million of additional debt from all sources, including the Credit Agreement.

Debt Covenants

As of May 31, 2026, we were in compliance with all covenants as defined under the terms of the Credit Agreement.