10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 60
Table of Contents
Based on acquired intangible assets recorded at October 1, 2022, amortization is estimated to be approximately:
2023
Estimated future amortization of acquired intangible assets
$
11,300 $
2024
10,500 $
2025
2026
9,400 $
2027
9,200 $
8,300
Note 9 - Indebtedness
We maintain short-term line of credit facilities with banks throughout the world that are principally demand lines
subject to revision by the banks.
Long-term debt consists of:
October 1,
2022
$
321,300
20,000
500,000
—
916
842,216
(4,428)
(916)
$
836,872
U.S. revolving credit facility
SECT revolving credit facility
Senior notes 4.25%
Securitization program
Other long-term debt
Senior debt
Less deferred debt issuance cost
Less current installments
Long-term debt
October 2,
2021
$
321,886
7,000
500,000
80,000
1,280
910,166
(6,446)
(80,365)
$
823,355
Our U.S. revolving credit facility, which matures on October 15, 2024, has a capacity of $1,100,000 and provides an
expansion option, which permits us to request an increase of up to $400,000 to the credit facility upon satisfaction of
certain conditions. The credit facility is secured by substantially all of our U.S. assets. The loan agreement contains
various covenants which, among others, specify interest coverage and maximum leverage. We are in compliance with
all covenants. The weighted-average interest rate on the majority of the outstanding credit facility borrowings is 4.16%
and is principally based on LIBOR plus the applicable margin, which was 1.50% at October 1, 2022. See Note 24 Subsequent Events, for information related to the amended and restated U.S. revolving credit facility.
The SECT has a revolving credit facility with a borrowing capacity of $35,000, maturing on July 26, 2024. Interest is
based on LIBOR plus an applicable margin of 2.13%. A commitment fee is also charged based on a percentage of the
unused amounts available and is not material.
At October 1, 2022, we had $500,000 aggregate principal amount of 4.25% senior notes due December 15, 2027 with
interest paid semiannually on June 15 and December 15 of each year, which commenced on June 15, 2020. The
senior notes are unsecured obligations, guaranteed on a senior unsecured basis by certain subsidiaries and contain
normal incurrence-based covenants and limitations such as the ability to incur additional indebtedness, pay dividends,
make other restricted payments and investments, create liens and certain corporate acts such as mergers and
consolidations. We are in compliance with all covenants. The aggregate net proceeds of $491,769 were used to repay
indebtedness under our U.S. revolving credit facility, thereby increasing the unused portion of our U.S. revolving credit
facility. The effective interest rate for these notes after considering the amortization of deferred debt issuance costs is
4.60%.
The Securitization Program, effectively increasing our borrowing capacity by up to $80,000, was extended on
October 29, 2021 and matured on December 29, 2021. Under the Securitization Program, we sold certain trade
receivables and related rights to an affiliate, which in turn sold an undivided variable percentage ownership interest in
the trade receivables to a financial institution, while maintaining a subordinated interest in a portion of the pool of trade
receivables. Interest for the Securitization Program was based on 30-day LIBOR plus an applicable margin. A
commitment fee was also charged based on a percentage of the unused amounts available and was not material. The
agreement governing the Securitization Program contained restrictions and covenants which included limitations on
the making of certain restricted payments, creation of certain liens, and certain corporate acts such as mergers,
consolidations and sale of substantially all assets. The Securitization Program had a minimum borrowing requirement
equal to the lesser of either 80% of our borrowing capacity or 100% of our borrowing base, which was a subset of the
trade receivables sold under this agreement. See Note 4 - Receivables, for information related to the amended and
restated RPA, which replaced the Securitization Program.
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