LONG-TERM DEBT (Block)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Debt Disclosure Text Block

4. LONG-TERM DEBT

(A) Senior Debt

The Credit Facility

As of March 31, 2016, the amount outstanding under the term loan component (the “Term B Loan”) of the Company’s senior secured credit facility (the “Credit Facility”) was $236.9million and the amount outstanding under the revolving credit facility (the “Revolver”) of the Credit Facility was $13.5million. The amount available under the Revolver, which includes the impact of outstanding letters of credit, was $25.8million as of March 31, 2016.

On November 23, 2011, the Company entered into a credit agreement with a syndicate of lenders for a $425million Credit Facility that was initially comprised of: (a) a $50million Revolver (reduced to $40million in December 2015) that matures on November 23, 2016; and (b) a $375million Term B Loan that matures on November 23, 2018.

Long-term debt, excluding deferred financing expense on the Revolver,was comprised of the following:

			Long-Term Debt
			March 31,		December31,
			2016		2015
				(amounts in thousands)
	Credit Facility
		Revolver, due November 23, 2016	$	13,500	$	26,000
		Term B Loan, due November 23, 2018		236,918		242,750
				250,418		268,750
	Senior Notes
		10.5% senior unsecured notes, due December 1, 2019		220,000		220,000
		Unamortized original issue discount		(1,640)		(1,731)
				218,360		218,269
	Other Debt
		Capital lease and other		97		-
Total debt before deferred financing costs				468,875		487,019
	Current amount of long-term debt			(32,210)		(31,832)
	Deferred financing costs (excluding Revolver)			(5,849)		(6,463)
Total long-term debt, net of current debt			$	430,816	$	448,724
Outstanding standby letter of credit			$	670	$	670

The Term B Loan requires mandatory prepayments equalto a percentage of Excess Cash Flow, which is defined within the agreement andis subject toincremental step-downs depending on the Consolidated Leverage Ratio. The payment, which is currently estimated at 25% of Excess Cash Flow, is due in the first quarter of each year for the prior year and is included under the current portion of long-term debt, net of any prepayments made through March 31, 2016. The Company expects to fund the payment using cash from operating activities.

As of March 31, 2016, the Company is in compliance with all financial covenants and all other terms of the Credit Facility in all material respects. The Company’s ability to maintain compliance with its covenants under the Credit Facility is highly dependent on its results of operations. Management believes that over the next 12 months the Company can continue to maintain compliance. The Company’s operating cash flow is positive, and management believes that it is adequate to fund the Company’s operating needs. Management believes that the Company can meet its liquidity requirements over the next 12months, including its debt repayments.

Failure to comply with the Company’s financial covenants or other terms of its Credit Facility and any subsequent failure to negotiate and obtain any required relief from its lenders could result in a default under the Company’s Credit Facility. Any event of default could have a material adverse effect on the Company’s business and financial condition. In addition, a default under either the Company’s Credit Facility or the indenture governing the Company’s 10.5% senior unsecured notes (the “Senior Notes”) could cause a cross default in the other and result in the acceleration of the maturity of all outstanding debt. The acceleration of the Company’s debt could have a material adverse effect on its business. The Company may seek from time to time to amend its Credit Facility or obtain other funding or additional funding, which may result in higher interest rates on its debt.

(B) Senior Unsecured Debt

The Senior Notes

The Senior Notes may be redeemed at any time at a redemption price of 105.25% of the principal amount plus accrued interest. The redemption price decreases December 1, 2016 and December 1, 2017 to 102.625% and 100.0%, respectively.

On November 23, 2011,the Companyissued $220.0million of 10.5% unsecured Senior Notes which mature on December 1, 2019. The Company received net proceeds of $212.7million, which included a discount of $2.9million, and incurred deferred financing costs of $6.1million. These amounts are amortized over the term under the effective interest rate method. Interest on the Senior Notes is payable semi-annually in arrears on June 1 and December 1 of each year.

(C) Net Interest Expense

The components of net interest expense are as follows:

	Net Interest Expense
	Three Months Ended
	March 31,
	2016		2015
	(amounts in thousands)
Interest expense	$	8,623	$	8,490
Amortization of deferred financing costs		687		707
Amortization of original issue discount of senior notes		91		82
Interest income and other investment income		(9)		-
Total net interest expense	$	9,392	$	9,279