Note 11 - Long-term Debt

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

1

1

– Long–

Term Debt

Long–term debt consists of the following

(dollars in thousands)

:

	Interest Rate at		December 31,
	Dec. 31, 2016	Maturities	2016		2015
Credit Facility, interest payable monthly	Variable, 2.1%	2020	$	110,000	$	110,000
Unsecured term note payable to National, interest payable quarterly, principal payable at maturity	Variable, 3.0%	2018		10,000		10,000
				120,000		120,000
Less current portion				–		–
			$	120,000	$	120,000

$

1

75,000,000

Credit Facility

In

October

2015,

we entered into a

$175

million credit facility that has a

five

year maturity date

(October

2020).

Loans bear interest at either (i) LIBOR plus

1.40%

or (ii) the base rate plus

0.40%.

The base rate is defined as the highest of (a) the Federal Funds Rate plus ½ of

1%,

(b) the Bank of America prime rate, and (c) LIBOR plus

1.00%.

The credit facility is available for general corporate purposes, including working capital and acquisitions. NHC is permitted, upon required notice to the lender, to prepay the loans outstanding under the credit facility at any time, without penalty.

The Credit Agreement contains customary representations and financial 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 aggregate maturities of long–term debt for the

five

years subsequent to

December

31,

2016

are as follows:

	Long–Term Debt
	(in thousands)
2017	$	−
2018		10,000
2019		−
2020		110,000
2021		−
Total	$	120,000