Note 3 - Long-term Debt

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Long-term Debt [Text Block]

NOTE

3

- LONG-TERM DEBT

On

May

17,

2017,

the Company entered into a Fifth Amended and Restated Business Loan and Security Agreement with a syndication of

11

commercial banks (the “Credit Facility”). The Credit Facility: (i) includes modifications to the Company’s Fourth Amended and Restated Business Loan and Security Agreement, (ii) matures on

May 17, 2022, (

iii) increases the borrowing ceiling up to

$600.0

million without a borrowing base requirement, taking into account financial, performance-based limitations, and (iv) provides for an “accordion,” which permits additional revolving credit commitments of up to

$300.0

million, subject to lenders’ approval. While the modification of the Credit Facility did

not

increase our debt outstanding,

$106.0

million of funds from new syndicated borrowings was used to pay off or pay down borrowings from syndicate members prior to the loan modification and align the allocation of debt within the syndication. These amounts were included within the “Advances from working capital facilities” and “Payments on working capital facilities” line items in the statement of cash flows for the period ended

June 30, 2017.

The Company has the option to borrow funds under the Credit Facility at interest rates based on both LIBOR (

1,

3,

or

6

month rates) and

the Base Rate, at its discretion, plus their applicable margins. Base Rates are fluctuating per annum rates of interest equal to the highest of (i) the Federal Funds Open Rate, plus

0.5%,

(ii) the Prime Rate, and (iii) the daily LIBOR rate, plus

1.00%.

The interest accrued based on LIBOR rates is to be paid on the last business day of the interest period (

1,

3,

or

6

months), while interest accrued based on the Base Rates is to be paid in quarterly installments. The Credit Facility provides for letters of credit aggregating up to

$60.0

million which reduce the funds available under the Credit Facility when issued. The Credit Facility is collateralized by substantially all of the assets of the Company and requires that the Company remain in compliance with certain financial and non-financial covenants. The financial covenants, require, among other things, that the Company maintain at all times an Interest Coverage Ratio (as defined under the Credit Facility) of

not

less than

3.00

to

1.00

and a Leverage Ratio (as defined, under the Credit Facility) of

not

more than

3.75

to

1.00

(subject to adjustment, in certain circumstances to

4.00

to

1.00

) for each fiscal quarter. As of

June 30, 2017,

the Company was in compliance with its covenants under the Credit Facility.

As of

June 30, 2017,

the Company had

$278.0

million in long-term debt outstanding,

$3.4

million in outstanding letters of credit, and unused borrowing capacity of

$318.6

million under the Credit Facility (excluding the accordion). Taking into account the financial, performance-based limitations, available borrowing capacity (excluding the accordion) was

$184.5

million as of

June 30, 2017. 

The weighted-average interest rate on debt outstanding was

2.6%

for the

first

six

months of

2017.