As part of the Business Combination, the Predecessor’s Revolver, U.K. Revolver, Senior secured notes, and Seller notes (see Predecessor section below for a discussion of these agreements) were all extinguished and the Company entered into (i) a Term Loan Agreement, dated among the Company, certain subsidiaries of the Company, Credit Suisse AG, Cayman Islands Branch as administrative agent and Credit Suisse Loan Funding LLC, Jefferies Finance LLC and Stifel Nicolaus & Company Incorporated LLC as joint lead arrangers and joint bookrunners, and the other Lenders party thereto and (the “Term Loan Agreement”) (ii) a Credit Agreement, dated among the Company, certain subsidiaries of the Company, Wells Fargo Bank, National Association, as agent, sole lead arranger and sole bookrunner, the other Lenders party thereto, and the other parties thereto (“ABL Credit Agreement”). Summarized terms of those debt agreements are included below.

 

 

Summarized terms of the Term Loan Agreement are as follows:

 

 

The outstanding balance under the Term Loan Agreement as of was million and the Company was in compliance with all debt covenants. The Company’s interest on borrowings under the Term Loan Agreement bear interest using the London Inter-bank Offered Rate (LIBOR) as the base rate plus an applicable margin in line with the summarized terms of the Term Loan Agreement as described above.

 

Future maturities of the Term Loan for fiscal years ending and thereafter is as follows:

 

Years ended October 31:
(in thousands)
2019		$	13,387
2020			17,850
2021			17,850
2022			17,850
2023			17,850
Thereafter			267,751
		$	352,538

 

Note:  The above amounts are reflective of the million increase to the Term Loan subsequent to See Note - Subsequent Events for further information

 

 

Summarized terms of the ABL Credit Agreement are as follows:

 

 

The outstanding balance under the ABL Credit Agreement as of was million and the Company was in compliance with all debt covenants.

 

 

 

The Predecessor had a revolving loan agreement (the Revolver). Summarized terms of the agreement were as follows:

 

 

As of the outstanding balance of the Revolver was million and the Predecessor was in compliance with all debt covenants.

 

 

The Predecessor had a revolving loan agreement (the “U.K. Revolver”) associated with the acquisition of Camfaud in The U.K. Revolver had a maximum borrowing capacity of approximately million and bore interest at LIBOR plus The U.K. Revolver required the Predecessor maintain a maximum ratio of total fixed charges.

 

As of the outstanding balance of the U.K. Revolver was million and the Predecessor was in compliance with all debt covenants.

 

In the Predecessor issued million in senior secured notes through a high-yield bond offering under SEC Rule (“Senior Notes”). In the Predecessor issued additional senior secured notes of million as an incremental borrowing with the same terms and form as the original Senior Notes.

 

Summarized terms of the Senior Notes were as follows:

 

 

Over the period of through the Predecessor repurchased and retired approximately million, in the aggregate, of principal of the Senior Notes.

 

In the Predecessor completed an exchange of substantially all outstanding existing Senior Notes for newly issued senior secured notes (“New Senior Notes”). Terms of the New Senior Notes were identical to the Senior Notes except that the maturity date was extended to

 

In conjunction with the acquisition of the O’Brien Companies (See Note - Business Combinations) in the Predecessor issued additional New Senior Notes with a principal amount of million at a percent premium for a total purchase price of million. The million has been recorded by the Company as a debt premium and will be amortized over the life of the New Senior Notes using the effective interest method. 

 

The outstanding balance of the original Senior Notes outstanding as of was The outstanding balance of the New Senior Notes as of was million.

 

 

In connection with the acquisitions of the Camfaud and Reilly in and respectively, the Predecessor entered into separate loan agreements with the former owners of the Camfaud and Reilly for million and million, respectively (collectively, the “Seller Notes”). The Seller Note with respect to Camfaud bore interest at per annum and all principal plus accrued interest was due upon the earlier of; () months after the U.K. Revolver is repaid in full, () months after the acquisition date (or () the date on which the Predecessor suffers an insolvency event. The Seller Note with respect to Reilly bore interest at per annum and all principal plus accrued interest are due years after the acquisition date (The Seller Notes were unsecured.

 

In connection with the Business Combination, the Company repaid its existing credit facilities in full and replaced them with the Term Loan Agreement and the ABL Credit Agreement. The Company also incurred an aggregate of million of costs related to the extinguishment of its existing debts, including the write-off of unamortized borrowing costs and an early extinguishment fee paid to its lenders. The amount has been reflected in the as debt extinguishment costs in the Predecessor’s consolidated statement of income for the period ended

 

The table below is a summary of the composition of the Company’s long-term debt balances at for the Successor and at for the Predecessor. Note that the term loan is combined for short term and long term balances.

 

		Successor				Predecessor
		April 30 ,				October 31,
(in thousands)		2019				2018
Term loan		$	352,538			$	-
Senior secured notes			-				167,553
Seller notes			-				8,292
			352,538				175,845
Plus unamortized premium on debt			-				540
Less unamortized deferred financing costs			(18,134	)			(2,915	)
Total long term debt		$	333,404			$	173,470