Note 12 - Long-Term Debt and Commitments

12 Months Ended

Dec. 31, 2011

Long-term Debt [Text Block]

Note 12 - Long-Term Debt and Commitments

Long-Term Debt

Long-term debt consists of the following (dollars in thousands):

	Weighted Average			Long-Term Debt December 31,
	Interest Rate	Maturities		2011		2010
Revolving Credit Facility, interest payable monthly	Variable, 0.8%	2012	$	–	$	–
Unsecured term note payable to National, interest payable quarterly, principal payable at maturity	Variable, 2.8%	2018		10,000		10,000
				10,000		10,000
Less current portion				–		–
			$	10,000	$	10,000

$75,000,000 Revolving Credit Agreement

 Effective October 26, 2011, we extended the maturity of our Credit Agreement (the "Credit Agreement") with Bank of America, N.A., as lender (the "Lender").  The Credit Agreement provides for a $75,000,000 revolving credit facility (the "Credit Facility"), of which up to $5,000,000 may be utilized for letters of credit.

Borrowings bear interest at either (i) the Eurodollar rate plus 0.70% or (ii) the prime rate.  Letter of credit fees are equal to 0.70% times the maximum amount available to be drawn under outstanding letters of credit.  The rates and fees are unchanged from those in effect prior to the extension.

Commitment fees are payable on the daily unused portion of the Credit Facility at a rate of twenty (20) basis points per annum.  NHC is permitted to prepay the loans outstanding under the Credit Facility at any time, without penalty.

The Credit Facility matures on October 25, 2012.  Between 90 and 120 days prior to the maturity date, NHC may request the extension of the maturity date.  If the Lender elects to consent to such extension, subject to certain conditions, the maturity date will be extended to the date which is 364 days after the then maturity date.

NHC’s obligations under the Credit Agreement are guaranteed by certain NHC subsidiaries and are secured by pledges by NHC and the guarantors of (i) 100% of the equity interests of domestic subsidiaries and (ii) up to 65% of the voting equity interests and 100% of the non-voting equity interests of foreign subsidiaries, in each case, held by NHC or the guarantors.

The Credit Agreement contains customary representations and warranties, and covenants, including covenants that restrict, among other things, asset dispositions, mergers and acquisitions, dividends, restricted payments, debt, liens, investments and affiliate transactions.  The Credit Agreement contains customary events of default.

The Credit Facility is available for general corporate purposes, including working capital and acquisitions.

The aggregate maturities of long-term debt and debt serviced by other parties for the five years subsequent to December 31, 2011 are as follows:

	Long-Term Debt
	(in thousands)
2012	$	−
2013		−
2014		−
2015		−
2016		−
Thereafter		10,000
Total	$	10,000

Lease Commitments

Operating expenses for the years ended December 31, 2011, 2010, and 2009 include expenses for leased premises and equipment under operating leases of $39,736,000, $38,086,000, and $37,332,000, respectively.  See Note 2 for the approximate future minimum rent commitments on non-cancelable operating leases with NHI.