Quarterly report pursuant to Section 13 or 15(d)

Debt And Derivatives

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Debt And Derivatives
 3 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt And Derivatives DEBT AND DERIVATIVES
Table 7.1: Details of Debt
December 31, 2024 September 30, 2024
(in thousands)
Term Loan A (TLA) $ 633,750  $ 641,875 
Term Loan B (TLB) 497,500  498,750 
Revolver 270,000  — 
Subsidiary loan agreements —  5,194 
Total debt principal 1,401,250  1,145,819 
Less: Unamortized debt-issuance costs and discounts (13,088) (13,726)
Total debt 1,388,162  1,132,093 
Less: Current portion of long-term debt (34,945) (40,139)
Long-term debt $ 1,353,217  $ 1,091,954 
Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At December 31, 2024, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends.
The following table sets forth future minimum principal payments due under our debt obligations as of December 31, 2024 for the remainder of fiscal year 2025 through fiscal year 2031:
Table 7.2: Details of Future Minimum Principal Payments Due
Amount Due
(in thousands)
January 1, 2025 through September 30, 2025 $ 28,125 
Year ended September 30, 2026 41,563 
Year ended September 30, 2027 53,750 
Year ended September 30, 2028 57,812 
Year ended September 30, 2029 746,250 
Years ended thereafter 473,750 
Total payments $ 1,401,250 
Interest Rate Derivative Instruments
We utilize interest rate swaps to reduce our risk from interest rates, which we have designated as cash flow hedges.
•We have an arrangement for a notional amount of $75.0 million, which hedges a Secured Overnight Financing Rate (SOFR) component of our TLB to a fixed amount of 4.09%. This arrangement expires in September 2025.
•We have arrangements for a combined notional amount of $500.0 million, which hedges a SOFR component of our TLA to a fixed amount of 2.31%. These arrangements expire in May 2026.
•We have an arrangement for a notional amount of $75.0 million, which hedges a SOFR component of our TLB to a fixed amount of 3.72%. This arrangement expires in September 2026.
The balance of the debt pays interest based upon the SOFR. At December 31, 2024, our effective interest rate, including the original issuance costs and discount rate, was 5.5%.
At December 31, 2024, we recorded an asset of $13.4 million and a liability of $0.9 million to reflect the fair value of these interest rate swap agreements, compared to an asset of $12.6 million and a liability of $3.4 million at September 30, 2024. The asset and liability are recorded as "other assets" and "other liabilities," respectively, within our consolidated balance sheets. As these instruments are effective cash flow hedges, gains and losses based upon interest rate fluctuations are recorded within "accumulated other comprehensive income" within our consolidated financial statements.
Debt And Derivatives DEBT AND DERIVATIVES
Table 7.1: Details of Debt
December 31, 2024 September 30, 2024
(in thousands)
Term Loan A (TLA) $ 633,750  $ 641,875 
Term Loan B (TLB) 497,500  498,750 
Revolver 270,000  — 
Subsidiary loan agreements —  5,194 
Total debt principal 1,401,250  1,145,819 
Less: Unamortized debt-issuance costs and discounts (13,088) (13,726)
Total debt 1,388,162  1,132,093 
Less: Current portion of long-term debt (34,945) (40,139)
Long-term debt $ 1,353,217  $ 1,091,954 
Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At December 31, 2024, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends.
The following table sets forth future minimum principal payments due under our debt obligations as of December 31, 2024 for the remainder of fiscal year 2025 through fiscal year 2031:
Table 7.2: Details of Future Minimum Principal Payments Due
Amount Due
(in thousands)
January 1, 2025 through September 30, 2025 $ 28,125 
Year ended September 30, 2026 41,563 
Year ended September 30, 2027 53,750 
Year ended September 30, 2028 57,812 
Year ended September 30, 2029 746,250 
Years ended thereafter 473,750 
Total payments $ 1,401,250 
Interest Rate Derivative Instruments
We utilize interest rate swaps to reduce our risk from interest rates, which we have designated as cash flow hedges.
•We have an arrangement for a notional amount of $75.0 million, which hedges a Secured Overnight Financing Rate (SOFR) component of our TLB to a fixed amount of 4.09%. This arrangement expires in September 2025.
•We have arrangements for a combined notional amount of $500.0 million, which hedges a SOFR component of our TLA to a fixed amount of 2.31%. These arrangements expire in May 2026.
•We have an arrangement for a notional amount of $75.0 million, which hedges a SOFR component of our TLB to a fixed amount of 3.72%. This arrangement expires in September 2026.
The balance of the debt pays interest based upon the SOFR. At December 31, 2024, our effective interest rate, including the original issuance costs and discount rate, was 5.5%.
At December 31, 2024, we recorded an asset of $13.4 million and a liability of $0.9 million to reflect the fair value of these interest rate swap agreements, compared to an asset of $12.6 million and a liability of $3.4 million at September 30, 2024. The asset and liability are recorded as "other assets" and "other liabilities," respectively, within our consolidated balance sheets. As these instruments are effective cash flow hedges, gains and losses based upon interest rate fluctuations are recorded within "accumulated other comprehensive income" within our consolidated financial statements.