Debt and Credit Facilities

Debt consisted of the following:



	March 31, 2020		December 31, 2019
Term loan and security agreement ^{1, 2}	$	155,572	$	156,384


^1.	Presented in the Condensed Consolidated Balance Sheets as current portion of long-term debt of $3.3 million, net of current prepaid debt financing costs of $0.5 million and current original issue discount of $0.6 million; and long-term debt of $152.3 million, net of long-term prepaid debt financing costs of $1.0 million and long-term original issue discount $1.1 million as of March 31, 2020.


^2.	Presented in the Condensed Consolidated Balance Sheets as current portion of long-term debt of $3.3 million, net of current prepaid debt financing costs of $0.5 million and current original issue discount of $0.6 million; and long-term debt of $153.1 million, net of long-term prepaid debt financing costs of $1.2 million and long-term original issue discount $1.3 million as of December 31, 2019.

Term Loan and Security Agreement

On April 12, 2017, the Company entered into a $175.0 million senior secured term loan credit facility, maturing on April 12, 2023, pursuant to a term loan and security agreement (the “TLS Agreement”), the terms of which are described in Note 9 in our 2019 Form 10-K. The unamortized deferred financing fees of $1.6 million and original issue discount of $1.7 million are netted against the aggregate book value of the outstanding debt resulting in a balance of $155.6 million as of March 31, 2020 and are being amortized over the remaining life of the agreement.

The TLS Agreement contains customary restrictive, financial maintenance and reporting covenants that are described in Note 9 in our 2019 Form 10-K. We were in compliance with the covenants as of March 31, 2020. On May 11, 2020, the Company entered into Amendment No. 1 of the TLS Agreement, the terms of which are discussed in Note 22.

Revolving Credit Facility

On September 18, 2019, the Company entered into an amendment of the Third Amended and Restated Loan and Security Agreement (the “Revolving Loan Agreement”), dated as of April 12, 2017, the terms of which are described in Note 9 in our 2019 10-K and which governs the Company’s asset based revolving credit facility (the “Revolving Credit Facility”).

The Amendment amends the terms of the Revolving Credit Facility to entitle the Company and the other named borrowers thereunder (subject to the terms and conditions described therein) to request loans and other financial accommodations in an amount equal to the lesser of $90.0 million and a borrowing base composed of accounts receivable and inventory (such facility, the “Tranche A Facility”). Of the $90.0 million, $7.0 million shall be available as a first-in, last-out facility (the “Tranche B Facility”) at a 100 basis points premium, as reflected in the table below.

The applicable margin, which is set at Level III as of March 31, 2020, is based on average daily availability under the revolving credit facility as follows:



Level	Average Daily Availability	Tranche A Base Rate Loans		Tranche A LIBOR Revolver Loans		Tranche B Base Rate Loans		Tranche B LIBOR Revolver Loans
III	≥ $30,000,000	0.50	%	1.50	%	1.50	%	2.50	%
II	> $15,000,000 but < $30,000,000	0.75	%	1.75	%	1.75	%	2.75	%
I	≤ $15,000,000	1.00	%	2.00	%	2.00	%	3.00	%

At March 31, 2020 we had 15.0 million of borrowings under the revolving credit facility, outstanding letters of credit were $1.6 million and we had availability of $56.1 million. The unamortized deferred financing fees associated with the revolving credit facility were $0.5 million and $0.6 million as of March 31, 2020 and December 31, 2019, respectively, and are being amortized over the remaining life of the agreement. At December 31, 2019, we did not have borrowings under the revolving credit facility; and we had outstanding letters of credit of $1.6 million.

The Revolving Loan Agreement contains customary restrictive, financial maintenance and reporting covenants that are described in Note 9 in our 2019 Form 10-K. The Company was in compliance with all applicable covenants as of March 31, 2020. On May 11, 2020, the Company entered into Amendment No. 2 to the Revolving Credit Facility, the terms of which are discussed in Note 22.