Company: MWA
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001350593-25-000043
Chunk: 103

Company: Mueller Water Products, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part II, Item 8
Chunk 103
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 such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act enacted in 2017, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.  We are currently assessing its impact on our consolidated financial statements.  We do not expect the OBBBA to have a material impact on our financial statements or our estimated annual effective tax rate for 2025.

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Note 4.  Borrowing Arrangements 

The components of our long-term debt are as follows: June 30,September 30,  20252024 (in millions)4.0% Senior Notes$450.0 $450.0 Finance leases3.5 2.7 Total debt453.5 452.7 Less: deferred financing costs2.7 3.2 Less: current portion of long-term debt1.0 0.8 Long-term debt$449.8 $448.7 ABL Agreement.  Our asset-based lending agreement, as amended, (“ABL”), is provided by a syndicate of banking institutions and consists of a revolving credit facility for up to $175.0 million in borrowing capacity that matures the earlier of (a) March 16, 2029, which is ninety-one days prior to the stated maturity date of our 4.0% Senior Notes if the Notes are still outstanding on that date or (b) March 28, 2029.  The ABL includes the ability to borrow up to $25.0 million of swing line loans and up to $60.0 million of letters of credit.  The ABL permits us to increase the size of the credit facility by an additional $150.0 million in certain circumstances subject to adequate borrowing base availability. Borrowings under the ABL bear interest at a floating rate equal to Secured Overnight Financing Rate (“SOFR”) plus an adjustment of 10 basis points and an applicable margin range of 150 to 175 basis points, or a base rate (as defined in the ABL) plus an applicable margin range of 50 to 75 basis points.  At June 30, 2025, the applicable margin was 150 basis points for SOFR-based loans and 50 basis points for base rate loans.  The ABL is subject to mandatory prepayments if total outstanding borrowings under the ABL are greater than the aggregate commitments under the revolving credit facility or if we dispose of overdue accounts rece