v3.26.1
Note 9. Credit Facilities - Textuals (Details)
€ in Millions, ¥ in Millions
 12 Months Ended
Jun. 30, 2026
USD ($)
Jun. 30, 2026
CNY (¥)
Jun. 30, 2026
EUR (€)
Mar. 31, 2026
USD ($)
Jun. 30, 2025
USD ($)
Credit Facility, Availability to Borrow $ 314,900,000        
Long-term Line of Credit 116,600,000       $ 147,500,000
Debt Issuance Costs, Net (400,000)       (400,000)
Long-Term Debt 116,200,000       147,100,000
Current portion of long-term debt 8,202,000       17,400,000
Long-term debt under credit facilities, less current portion $ 108,000,000       $ 129,650,000
Debt, Weighted Average Interest Rate 5.00% 5.00% 5.00%   5.90%
Interest Costs Capitalized $ 500,000        
Term Loan A          
Long-Term Debt, Maturity, Year One 6,250,000        
Long-Term Debt, Maturity, Year Two 7,500,000        
Long-Term Debt, Maturity, Year Three 8,750,000        
Long-Term Debt, Maturity, Year Four 70,000,000.00        
Financial Standby Letter of Credit          
Unused standby letters of credit 400,000       $ 400,000
Primary Credit Facility          
Credit Facility, Maximum Borrowing Capacity 300,000,000        
Long-term debt under credit facilities, less current portion [1] 108,000,000.0       129,700,000
Line of Credit Facility, Additional Borrowing Capacity Upon Request 150,000,000        
Line of Credit Facility, Maximum Borrowing Capacity Upon Request $ 450,000,000        
Adjusted Leverage Ratio Covenant 3.0        
Adjusted Leverage Ratio Covenant Material Acquisition 3.5        
Line of Credit Facility, Above the Federal Funds Rate to Calculate Alternate Base Rate 0.50%        
Line of Credit Facility, Above the Adjusted SOFR Rate to Calculate Alternate Base Rate 1.00%        
Adjusted Leverage Ratio, Indebtedness Reduction For Excess Cash       $ 15,000,000  
Adjusted Leverage Ratio, Indebtedness Reduction for Unrestricted Cash $ 25,000,000        
Interest Coverage Ratio Covenant 3.5        
Primary Credit Facility | Revolving Credit Facility          
Credit Facility, Availability to Borrow [2] $ 275,500,000        
Long-term Line of Credit [2] 24,100,000       50,000,000.0
Primary Credit Facility | Revolving Credit Facility | Term Benchmark          
Long-term Line of Credit [2] 22,000,000.0        
Primary Credit Facility | Revolving Credit Facility | ABR          
Long-term Line of Credit [2] 2,100,000        
Primary Credit Facility | Term Loan A          
Credit Facility, Maximum Borrowing Capacity 100,000,000        
Credit Facility, Availability to Borrow [2] 0        
Long-term Line of Credit [2] $ 92,500,000       97,500,000
Primary Credit Facility | Minimum          
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage 0.10%        
Line of Credit Facility, Term Benchmark Loans Spread for SOFR 0.01100        
Line of Credit Facility, Term Benchmark Loans Spread for EURIBOR 0.01100        
Line of Credit Facility, Alternate Base Rate Loans Spread 0.00000        
Primary Credit Facility | Maximum          
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage 0.25%        
Line of Credit Facility, Term Benchmark Loans Spread for SOFR 0.01850        
Line of Credit Facility, Term Benchmark Loans Spread for EURIBOR 0.01850        
Line of Credit Facility, Alternate Base Rate Loans Spread 0.00750        
Thailand Overdraft Credit Facility          
Credit Facility, Maximum Borrowing Capacity $ 10,100,000        
Credit Facility, Availability to Borrow [3],[4] 10,100,000        
Current portion of long-term debt [3],[4] 0       0
China Revolving Credit Facility          
Credit Facility, Maximum Borrowing Capacity 7,400,000 ¥ 50      
Credit Facility, Availability to Borrow [3],[5] 7,400,000        
Current portion of long-term debt [3],[5] 0       0
Netherlands Revolving Credit Facility          
Credit Facility, Maximum Borrowing Capacity 10,500,000   € 9.2    
Credit Facility, Availability to Borrow [3],[6] 10,500,000        
Current portion of long-term debt [3],[6] 0       0
Poland Revolving Credit Facility          
Credit Facility, Maximum Borrowing Capacity 11,400,000   € 10.0    
Credit Facility, Availability to Borrow [3],[7] 11,400,000        
Current portion of long-term debt [3],[7] $ 0       $ 0
[1] The amount of Long-term debt under credit facilities, less current maturities reflects the borrowings on the primary credit facility that the Company intends, and has the ability, to refinance for a period longer than twelve months. The revolving borrowings on the primary credit facility matures on April 30, 2031.
[2] The Company maintained a U.S. primary credit facility that provided for revolving borrowings of $300 million, with the option to increase the amount available for revolving borrowings by an additional $150 million (to a total of $450 million) at the Company’s request, subject to the consent of each lender participating in such increase, which was scheduled to mature on May 4, 2027. The U.S. primary credit facility also included a term loan borrowing facility that provides for term loan borrowings (“term borrowings”) of $100 million repayable in scheduled quarterly installments, scheduled to mature December 20, 2029.
On April 30, 2026, the Company entered into an amended and restated credit agreement (the “restated primary credit facility”) among the Company, the lenders party thereto, and JPMorgan Chase Bank, N. A., as Administrative Agent, and Bank of America, N.A., as Documentation Agent. The restated primary credit facility continues to provide for revolving borrowings of $300 million, with the option to increase the amount available for revolving borrowings by an additional $150 million (to a total of $450 million) at the Company’s request, subject to the consent of each lender participating in such increase, now with a maturity date of April 30, 2031. The terms for the term loan borrowings remain largely unchanged in the restated primary credit facility as it continues to maintain the maturity date of December 20, 2029 for such term loan borrowings and the quarterly payment schedule for such term loan borrowings.
This facility is maintained for working capital and general corporate purposes of the Company, and the Company is permitted to use the proceeds to refinance existing indebtedness. The restated primary credit facility defines the limitations for a supply chain financing program, and as part of its rebranding, subject to Share Owners’ approval, provides for updates to the Company’s trade name to Kimball Solutions, Inc. and also its subsidiaries. A commitment fee is payable on the unused portion of the credit facility at a rate that ranges from 10.0 to 25.0 basis points per annum as determined by the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA, as defined in the restated primary credit facility. Types of borrowings available on the restated primary credit facility include term loans, revolving loans, multi-currency term loans, and swingline loans.
At June 30, 2026, the Company had $22.0 million Term Benchmark and $2.1 million ABR, both denominated in U.S. dollars, outstanding borrowings under the restated primary credit facility. At June 30, 2025, all outstanding borrowings under the primary credit facility were Term Benchmark borrowings denominated in U.S. dollars.
The interest rate on borrowings is dependent on the class, type and currencies of borrowings and will be one of the following options:
•any Term Benchmark borrowing denominated in U.S. Dollars will utilize the Secured Overnight Financing Rate (“SOFR”), which is a rate per annum equal to the secured overnight financing rate for such business day published by the SOFR Administrator, the Federal Reserve Bank of New York, on the immediately succeeding business day, plus the Revolving Commitment Term Benchmark spread or Term Loan Benchmark spread which can range from 110.0 to 185.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA;
•any Term Benchmark borrowing denominated in Euros will utilize the Euro Interbank Offered Rate (“EURIBOR”) in effect two target days prior to the advance (adjusted upwards to reflect bank reserve costs) for
such interest period as defined in the agreement, plus the Revolving Commitment Term Benchmark spread or Term Loan Term Benchmark spread which can range from 110.0 to 185.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or
•the Alternate Base Rate (“ABR”), which is defined as the highest of the fluctuation rate per annum equal to the higher of:
a.Prime Rate in the U.S. last quoted by the Wall Street Journal, and if this is ceased to be quoted, the highest bank prime loan rate or similar loan rate quoted by the Federal Reserve Board;
b.1/2 of 1% per annum above the Federal Reserve Bank of New York (NYFRB) Rate (as defined under the Credit Agreement); or
c.1% per annum above the Term SOFR Rate (as defined under the Credit Agreement);
plus the Revolving Commitment ABR spread which can range from 0.0 to 75.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA. Under the restated primary credit facility, the ABR Spread and Benchmark Spread for term loan borrowings remain the same as for revolving commitment borrowings.
The Company’s financial covenants under the restated primary credit facility are largely unchanged, with the exception of the change in the first covenant below from “unencumbered U.S. cash on hand in the United States in excess of $15 million” to “unrestricted Cash in an amount not to exceed $25 million,” and require:
•a ratio of consolidated total indebtedness minus unrestricted cash, as defined in the restated primary credit facility, in an amount not to exceed $25 million to adjusted consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0, provided, however, that for each fiscal quarter end during the four quarter period following a material permitted acquisition, as defined in the restated primary credit facility, the Company will not permit this financial covenant to be greater than 3.5 to 1.0 for each such fiscal quarter end, and,
•an interest coverage ratio, defined as that ratio of consolidated EBITDA for such period to cash interest expense for such period, for any period of four consecutive fiscal quarters, to not be less than 3.5 to 1.0.
The Company had $0.4 million in letters of credit contingently committed against the primary credit facility at both June 30, 2026 and June 30, 2025.
[3] The Company also maintains foreign credit facilities for working capital and general corporate purposes at specific foreign locations rather than utilizing funding from intercompany sources. These foreign credit facilities can be canceled at any time by either the bank or us and generally include renewal clauses. Interest on borrowing under these facilities is charged at a rate as defined under the respective foreign credit facility.
[4] The Company maintains a foreign credit facility for its operation in Thailand which allows for borrowings of up to $10.1 million.
[5] The Company maintains a foreign credit facility for its operation in China which allows for borrowings up to 50.0 million RMB (approximately $7.4 million at June 30, 2026 exchange rates).
[6] The Company maintains an uncommitted revolving credit facility for our Netherlands subsidiary. The Netherlands credit facility allows for borrowings of up to 9.2 million Euro (approximately $10.5 million at June 30, 2026 exchange rates), which borrowings can be made in Euro, U.S. dollars, or other optional currency. Interest on borrowing under this facility is charged at a rate of interest dependent on the denomination of the currency borrowed.
[7] The Company maintains a foreign credit facility for its operation in Poland which allows for borrowings up to 10.0 million Euro (approximately $11.4 million at June 30, 2026 exchange rates).