Note 15 - Revolving Credit Facility |
12 Months Ended |
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Jul. 31, 2026 | |
| Notes to Financial Statements | |
| Debt Disclosure [Text Block] |
Note 15—Revolving Credit Facility
IDT Telecom, Inc. (“IDT Telecom”), a subsidiary of the Company, maintains a revolving credit facility with TD Bank, N.A. The commitment under the facility was initially $25.0 million. Effective August 11, 2026, the facility, which was scheduled to mature on August 16, 2026, was amended to extend the maturity date to July 15, 2029. The amendment also increased the facility to provide additional seasonal borrowing capacity, raising the commitment to $50.0 million during the months of May and December of each year (from $25.0 million during all other months). IDT Telecom may use the proceeds to finance working capital requirements. The facility is secured by substantially all of the Company's assets and bears interest at the term secured overnight financing rate plus 10 basis points, plus a margin of 125 to 175 basis points depending on IDT Telecom’s leverage ratio as of the most recently completed fiscal quarter. Interest is payable monthly, and all outstanding principal and accrued and unpaid interest is due upon the maturity date of the facility. IDT Telecom pays a quarterly unused commitment fee of 10 basis points on the average daily unused balance of the commitment. At July 31, 2026 and July 31, 2025, there were amounts outstanding under this facility. During fiscal 2026, fiscal 2025, and fiscal 2024, IDT Telecom borrowed and repaid $21.4 million, $24.6 million, and $32.9 million, respectively, under this facility. IDT Telecom is required to comply with various affirmative and negative covenants and to maintain certain financial ratio targets during the term of the facility. As of July 31, 2026 and July 31, 2025, IDT Telecom was in compliance with all such covenants.
In the first quarter of fiscal 2027 through September 29, 2026, IDT Telecom had no borrowings under the facility.
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