Note 12 - Long-term Debt

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

Note 12 – Long–Term Debt

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

	Interest Rate at		December 31,
	Dec. 31, 2019	Maturities	2019			2018
Credit Facility, interest payable monthly	Variable, 3.1%	2020	$	10,000		$	55,000
Less current portion				(10,000	)		–
			$	–		$	55,000

$60,000,000 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.

As of December 31, 2019, the available borrowing capacity for the credit facility is $50 million.

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.  As of December 31, 2019, the Company is compliant with all financial covenants.

The aggregate maturities of long–term debt for the five years subsequent to December 31, 2019 are as follows (in thousands):

	Long–Term Debt
2020	$	10,000
2021		–
2022		–
2023		–
2024		–
Thereafter		–
Total	$	10,000