73 / Schnitzer Steel Industries, Inc. Form 10-K 2021 Other Intangible Assets, net The following table presents the Company’s other intangible assets as of August 31 (in thousands): 2021 2020 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Covenants not to compete $ 6,745 $ (3,846) $ 2,899 $ 7,032 $ (3,528) $ 3,504 Indefinite-lived intangibles(1) 1,081 — 1,081 1,081 — 1,081 Total $ 7,826 $ (3,846) $ 3,980 $ 8,113 $ (3,528) $ 4,585 (1) Indefinite-lived intangibles include previously acquired trade names and certain permits and licenses. Total intangible asset amortization expense was $1 million in each of the years ended August 31, 2021, 2020, and 2019. There were no impairments of intangible assets recognized for the periods presented. The estimated amortization expense, based on current intangible asset balances, during the next five fiscal years and thereafter is as follows (in thousands): Years Ending August 31, Estimated Amortization Expense 2022 $ 723 2023 458 2024 411 2025 407 2026 287 Thereafter 613 Total $ 2,899 Note 8 - Debt Debt consisted of the following as of August 31 (in thousands): 2021 2020 Bank revolving credit facilities, interest primarily at LIBOR plus a spread $ 60,000 $ 90,000 Finance lease liabilities 6,591 7,508 Other debt obligations 8,362 6,911 Total debt 74,953 104,419 Less current maturities (3,654) (2,184) Debt, net of current maturities $ 71,299 $ 102,235 The Company’s senior secured revolving credit facilities, which provide for revolving loans of $700 million and C$15 million, mature in August 2023 pursuant to a credit agreement with Bank of America, N.A., as administrative agent, and other lenders party thereto. The $700 million credit facility includes a $50 million sublimit for letters of credit, a $25 million sublimit for swingline loans, and a $50 million sublimit for multicurrency borrowings. Interest rates on outstanding indebtedness under the credit agreement are based, at the Company’s option, on either the London Interbank Offered Rate (“LIBOR”) (or the Canadian equivalent for C$ loans), plus a spread of between 1.25% and 3.50%, with the amount of the spread based on a pricing grid tied to the Company’s ratio of consolidated funded debt to EBITDA (as defined by the credit agreement), or the greater of (a) the prime rate, (b) the federal funds rate plus 0.50%, or (c) the daily rate equal to one-month LIBOR plus 1.75%, in each case, plus a spread of between 0.00% and 2.50% based on a pricing grid tied to the Company’s consolidated funded debt to EBITDA ratio. In addition, commitment fees are payable on the unused portion of the credit facilities at rates between 0.20% and 0.50% based on a pricing grid tied to the Company’s ratio of consolidated funded debt to EBITDA. As of August 31, 2021 and 2020, borrowings outstanding under the credit facilities were $60 million and $90 million, respectively. The weighted average interest rate on amounts outstanding under the credit facilities was 1.75% and 4.59% as of August 31, 2021 and 2020, respectively.
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