|
Long-Term Debt |
3 Months Ended |
|---|---|
|
Sep. 30, 2012 |
|
| Debt Disclosure [Abstract] | |
| Long-Term Debt |
LONG-TERM DEBT
In April 2008, the Company issued
$750 million
aggregate principal amount of
6.90%
senior, unsecured long-term debt due in
2018
with an effective interest rate of
7.00%
. The discount on the debt amounted to
$5.4 million
and is being amortized over the life of the debt using the straight-line method as opposed to the interest method due to immateriality. Interest is payable
semi-annually
on November 1 and May 1. The debt indenture includes covenants that limit the Company’s ability to grant liens on its facilities and to enter into sale and leaseback transactions, subject to significant allowances under which certain sale and leaseback transactions are not restricted. The Company was in compliance with all of its covenants as of
September 30, 2012
.
In certain circumstances involving a change of control followed by a downgrade of the rating of the Company’s senior notes, the Company will be required to make an offer to repurchase the senior notes at a purchase price equal to
101%
of the aggregate principal amount of the notes, plus accrued and unpaid interest. The Company’s ability to repurchase the senior notes in such event may be limited by law, by the indenture associated with the senior notes, by the Company’s then-available financial resources or by the terms of other agreements to which the Company may be party at such time. If the Company fails to repurchase the senior notes as required by the indenture, it would constitute an event of default under the indenture governing the senior notes which, in turn, may also constitute an event of default under other obligations.
Based on the trading prices of the debt on the applicable dates, the fair value of the debt as of
September 30, 2012
and
June 30, 2012
是
$909.0 million
and
$902.2 million
, respectively.
|