Note 8 - Long-term Debt

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Long-term Debt [Text Block]

8. LONG-TERM DEBT:

Long-term debt was comprised of the following (in thousands):

	December 31,
	2019			2018
Variable interest rate term notes	$	58,416		$	80,355
Fixed interest rate term notes		569,262			520,818
Total debt		627,678			601,173
Less: current maturities		(189,265	)		(161,955	)
Total long-term debt, net of current maturities	$	438,413		$	439,218

As of December 31, 2019, long-term debt maturities were as follows (in thousands):

2020		189,265
2021		127,557
2022		115,337
2023		96,053
2024		66,424
Thereafter		33,042
Total	$	627,678

The interest rates on the Company’s variable interest rate notes are based on various LIBOR benchmark rates. The interest rates on the notes ranged from approximately 3.3% to 3.7% on December 31, 2019. Payments on the notes range from approximately $5,330 to $125,833 per month, plus interest. Maturities of these notes range from June 2020 to June 2025.

The Company’s fixed interest rate notes had interest rates that ranged from approximately 3.0% to 7.6% on December 31, 2019. Payments on the notes range from $255 to $72,315 per month. Maturities of these notes range from January 2020 to May 2029.

The proceeds from the issuance of the notes were used primarily to acquire land, buildings and improvements and vehicles for the Company’s lease and rental fleet. The notes are secured by the assets acquired with the proceeds of such notes.

The Company’s long-term real estate debt agreements, floor plan financing arrangements and the Working Capital Facility require the Company to satisfy various financial ratios such as the debt to worth ratio, leverage ratio, the fixed charge coverage ratio and certain requirements for tangible net worth and GAAP net worth. As of December 31, 2019, the Company was in compliance with all debt covenants. The Company does not anticipate any breach of the covenants in the foreseeable future.