Note L: Short-term Financing



The Company maintains credit facilities and letters of credit as part of its normal and recurring business operations.



Credit Facilities:  The Company maintains three committed, unsecured credit facilities, as follows:





(1) Borrower is a wholly owned subsidiary of the Company.

(2) JP Morgan Chase Bank, N.A. (“JPM”) acts as the administrative agent for this syndicated credit facility.



For all credit facilities, obligations under any facility are guaranteed by the Company and certain of its subsidiaries and will bear interest at competitive rates based on options provided to the borrower.  Upon the expiration date, any borrowings outstanding will mature and be payable on such date.



JPM $1 Billion Credit Facility: There were no borrowings outstanding under this credit facility as of November 30, 2018 or May 31, 2018.  Details of borrowings under this credit facility during the three and six months ended November 30, 2018 and November 30, 2017 are as follows:







The Company typically borrows on an overnight basis and only borrowed on an overnight basis during the three and six months ended November 30, 2018 and during the three months ended November 30, 2017.  In addition to overnight borrowings, during the six months ended November 30, 2017, the Company borrowed $100.0 million for a three-day period at a weighted-average interest rate of 4.25%. Subsequent to November 30, 2018, the Company borrowed $400.0 million due on February 20, 2019 at a LIBOR-based interest rate of 3.50% as it secures permanent financing for the acquisition of Oasis.



JPM $500 Million Credit Facility: There were no borrowings outstanding under this credit facility as of November 30, 2018 or May 31, 2018. Details of borrowings under this credit facility during the three and six months ended November 30, 2018 and November 30, 2017 are as follows: 







The Company typically borrows on an overnight basis and only borrowed on an overnight basis during the three and six months ended November 30, 2018.  In addition to overnight borrowings, during the three and six months ended November 30, 2017, the Company borrowed $300.0 million for seven days and $75.0 million for eleven days at weighted-average LIBOR-based interest rates of 2.13% and 2.19%, respectively.  Subsequent to November 30, 2018, the Company borrowed $400.0 million due on February 20, 2019 at a LIBOR-based interest rate of 3.50% as it secures permanent financing for the acquisition of Oasis.  



PNC $150 Million Credit Facility:  As of November 30, 2018, the Company had $57.3 million outstanding under this credit facility, which remains outstanding as of the date of this report.  There were no borrowings outstanding under this credit facility as of May 31, 2018. Details of borrowings under this credit facility during the three and six months ended November 30, 2018 and November 30, 2017 are as follows:







All of the Company’s credit facilities contain various financial and operational covenants that are usual and customary for such arrangements. The Company was in compliance with all of these covenants as of November 30, 2018.



Certain lenders under these credit facilities, and their respective affiliates, have performed, and may in the future perform for the Company, various commercial banking, investment banking, underwriting, and other financial advisory services, for which they have received, and will continue to receive in the future, customary fees and expenses.



Letters of credit: The Company had irrevocable standby letters of credit outstanding totaling $67.8 million and $56.8 million as of November 30, 2018 and May 31, 2018, respectively, required to secure commitments for certain insurance policies. The letters of credit expire at various dates between April 2019 and July 2020.  No amounts were outstanding on these letters of credit as of or during the six months ended November 30, 2018 and November 30, 2017, or as of May 31, 2018.