Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 12, 2017, the Company entered into a $175 million secured credit facility (the “Term Loan Facility”), maturing in April 2023, pursuant to a term loan and security agreement (the “TLS Agreement”) with Bank of America, N.A., as administrative agent, and other lender parties thereto. Concurrent with the closing of the TLS Agreement, the proceeds of the Term Loan Facility were used, together with cash on hand of the Company in the amount of $74 million, to (a) fund the redemption, satisfaction and discharge of all of the Company’s outstanding 7.875% notes along with accrued interest; and (b) pay related transaction costs, fees and expenses.

The Company also entered into the Third Amended and Restated Loan Agreement ("Third ARLS Agreement") increasing its revolving credit facility to $65 million from $40 million, and extending the maturity date to April 2022 from April 2018. Up to an aggregate of $10.0 million is available to the Company and the other borrowers for the issuance of letters of credit, which reduces availability under the Third ARLS Agreement.

The Company will recognize a non-cash charge of $1.6 million in the second quarter of 2017 to write-off deferred financing fees associated with the redemption of the 7.875% notes. Concurrent with the closing of the TLS Agreement, the Company incurred a 2%, or $3.5 million, original issue discount on the principal amount of the Term Loan Facility, which will be amortized over the six-year term of the TLS Agreement. The Company expects to defer approximately $4 million in costs associated with the financing transaction in the quarter ending June 30, 2017.