KENNAMETAL INCKMT

KENNAMETAL INC Debt Disclosure

10-KFiled Aug 20, 20201 min read
LONG-TERM DEBT
Long-term debt consisted of the following at June 30:
(in thousands)
2020
 
2019
3.875% Senior Unsecured Notes due fiscal 2022, net of discount of $0.1 million for 2020 and 2019
299,940

 
299,903

4.625% Senior Unsecured Notes due fiscal 2028, net of discount of $1.7 million for 2020 and $2.0 million for 2019
298,264

 
298,046

Total term debt
598,204

 
597,949

Less unamortized debt issuance costs
(4,121
)
 
(5,475
)
Total long-term debt
$
594,083

 
$
592,474

Senior Unsecured Notes On June 7, 2018, we issued $300.0 million of 4.625 percent Senior Unsecured Notes with a maturity date of June 15, 2028. Interest will be paid semi-annually on June 15 and December 15 of each year. We used the net proceeds from the offering of the notes, plus cash on hand, for the early extinguishment of our $400.0 million of 2.650 percent Senior Unsecured Notes ($400.0 million Notes) in July of fiscal 2019. On February 14, 2012, we issued $300 million of 3.875 percent Senior Unsecured Notes with a maturity date of February 15, 2022. Interest on these Notes is paid semi-annually on February 15 and August 15 of each year.
Future principal maturities of long-term debt are $300 million in 2022 and $300 million in 2028.

Historical Timeline

Fiscal YearFiled
2020Aug 20, 2020Showing above
2019Aug 13, 2019
2018Aug 10, 2018
2017Aug 14, 2017
2016Aug 11, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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