Debt and Line of Credit

12 Months Ended

Dec. 31, 2019

Long-term debt, net as of December 31, 2019 and 2018, was as follows:


	December 31,
	2019						2018
	Amount		Weighted-Average Interest Rate		Amount		Weighted-Average Interest Rate

Line of credit	107,140		4.64	%	58,363		4.03	%
Total long-term debt outstanding	$	107,140			$	58,363

On April 12, 2018, the Company entered into an amended and restated credit and security agreement (the “2018 Credit and Security Agreement”) with KeyBank National Association (“KeyBank”), as administrative agent, Swing Line Lender and Issuing Lender, KeyBanc Capital Markets Inc., as sole lead arranger and sole book runner, and other members of the lender group, which was subsequently amended by a First Amendment Agreement dated as of November 28, 2018, a Second Amendment Agreement dated as of August 30, 2019, and a Third Amendment Agreement dated December 4, 2019 (as amended, the “2018 Credit and Security Agreement”).

The 2018 Credit and Security Agreement currently consists of a $144,300 (“Maximum Revolver Amount”) secured revolving credit facility (the “2018 Revolver”), which is not subject to borrowing base limitation. In addition, at the Company’s option, up to $40,000 of the 2018 Revolver may be made available for the issuance of letters of credit (the “Accordion”). Proceeds from the 2018 Revolver were used to fully retire the term loan under a credit and security agreement entered in 2016 (the "2016 Credit and Security Agreement") and thus, the 2018 Revolver is the only credit

instrument effective April 12, 2018. As of December 31, 2019, $200 was issued under letters of credit and $36,960 was available to be issued for letters of credit.

The 2018 Revolver initially bears interest at an annual rate, at the Company’s option, of (i) the base rate (as defined in the 2018 Credit and Security Agreement) plus a margin of 0.250% to 1.375% based on the prior quarter-end Leverage Ratio or (ii) the Eurodollar Rate (as defined in the 2018 Credit and Security Agreement) plus a margin of 1.250% to 2.375% based on the prior quarter-end Leverage Ratio. The 2018 Revolver matures April 11, 2023, subject to early termination in the event of default.

In addition, the Company is required to pay a monthly Applicable Commitment Fee Rate (as defined in the 2018 Credit and Security Agreement) that can fluctuate between 0.175% and 0.275% based on the Leverage Ratio (as defined in the 2018 Credit and Security Agreement). The commitment fee is calculated monthly using the Maximum Revolving Amount (as defined in the 2018 Credit and Security Agreement) at the end of each calendar month, minus the Revolving Credit Exposure (exclusive of the Swing Line Exposure) (each as defined in the 2018 Credit and Security Agreement) at the end of such day, multiplied by the Applicable Commitment Fee Rate in effect on such day divided by three hundred sixty (360). The monthly commitment fee is payable quarterly in arrears, commencing on July 1, 2018 and continuing on each regularly scheduled payment date thereafter.

The 2018 Credit and Security Agreement contains customary representations and warranties and restrictive covenants. The 2018 Credit and Security Agreement also contains affirmative and negative covenants requiring, among other things, the Company to meet certain financial ratio tests and to provide certain information to the lenders. The 2018 Credit and Security Agreement also includes financial maintenance covenants that require compliance with a Leverage Ratio and a Fixed Charge Coverage Ratio (both defined in the 2018 Credit and Security Agreement), tested at the end of each fiscal quarter commencing with the three months ended June 30, 2018.

The 2018 Credit and Security Agreement also contains customary events of default. If an event of default occurs, the lenders under the 2018 Credit and Security Agreement would be entitled to take various actions, including the acceleration of amounts due thereunder and all other actions permitted to be taken by a secured creditor.

Under the 2018 Credit and Security Agreement, the Company does not have a lockbox arrangement and has full control of cash upon receipt from customers. As the 2018 Revolver does not mature until 2023, the 2018 Revolver is classified as a noncurrent liability.

The First Amendment Agreement increased the Maximum Revolver Amount of the 2018 Revolver by the $40,000 accordion from $85,000 to $125,000 with the Accordion amount available for the Company to use at the effective date of the First Amendment Agreement. In addition, the First Amendment Agreement allows the Company to add a new term loan or add to the existing Revolver another $25,000 within a specified period defined in the First Amendment Agreement. The Accordion’s maturity date is April 11, 2023, consistent with the existing maturity date of the Credit Agreement.

The Second Amendment Agreement increased the Maximum Revolver Amount of the 2018 Revolver and the First Amendment Agreement by $11,800 (the “Temporary Accordion”) from $125,000 to $136,800, with the Temporary Accordion amount available for the Company to use at the effective date of the Second Amendment Agreement. The Temporary Accordion’s maturity date is December 31, 2019.

The Third Amendment Agreement increases the Maximum Revolver Amount of the 2018 Revolver and the First Amendment Agreement by amending the Temporary Accordion to $19,300 (the “New Temporary Accordion”) from $125,000 to $144,300, with the New Temporary Accordion amount available for the Company to use at the effective date of the Third Amendment Agreement. The New Temporary Accordion’s maturity date is February 28, 2020.

Except as amended by the First,Second, and Third Amendment Agreements, all terms and covenants within the Credit Agreement remain effective, including previously determined interest rate amounts.

The Company incurred a loss of $243 of deferred loan costs written off for the retirement of the 2016 Credit and Security Agreement as of the 2018 Credit and Security Agreement effective date. In conjunction with the $521 previously capitalized deferred loan cost carried over from the 2016 Credit and Security Agreement, the Company capitalized $294 debt issuance costs for the 2018 Credit and Security Agreement, $170 debt issuance costs for the First Amendment Agreement modification, $40 debt issuance costs for the Second Amendment Agreement modification, and $204 debt issuance costs for the Third Amendment Agreement modification, totaling a new gross balance of $1,229 for deferred loan costs, with $808 remaining as of December 31, 2019 to be amortized which is included in other assets in the consolidated balance sheets.

Contractual future payments under the 2018 Credit and Security Agreement are $107,140 from the 2018 Revolver, which will be due in 2023.