Note 10 - Long-term Debt

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

10

–

Long

–

Term Debt

Long–term debt consists of the following:

	Weighted Average Interest Rate		Maturities		June 30, 2017		December 31, 2016
	Variable				(dollars in thousands)
Revolving Credit Facility, interest payable monthly		2.6%		2020	$	110,000	$	110,000
Unsecured term note payable to National, interest payable quarterly, principal payable at maturity		3.6%		2018		10,000		10,000
						120,000		120,000
Less current portion						–		–
					$	120,000	$	120,000

The

$10

million unsecured term note payable to National is due

January 1, 2018.

The Company intends to extend the note payable beyond the current due date. If the Company is

not

able to extend the note payable with National, the

$175

million credit facility is

available to provide financing.

$175,000,000

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.