Subsequent Event

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

During the first quarter of 2019, the Company initiated discussions with the lead bank due to concerns that it would not be in compliance with financial covenants and executed the Sixth Amendment during May 2019. With the execution of the aforementioned amendment, the Company obtained a waiver on the financial covenants as of March 31, 2019.

As of the execution date, the amendment will also increase the leverage ratio requirements to 9.50, 6.25, and 4.00 times for the second, third, and fourth quarters of 2019, respectively and provide a covenant waiver on the fixed charge coverage ratio for the second and third quarters of 2019.  The fixed charge coverage ratio requirement will revert back to 1.25 times in the fourth quarter of 2019. The leverage ratio requirement will revert back to 3.00 times in the first quarter of 2020. Additionally, as of the execution date, the amendment will reduce the commitment on the revolving line of credit to $50 million and will include a contingency for an additional $5.0 million reduction if certain circumstances have not been met by May 31, 2019.  With the execution of the Sixth Amendment, the existing Credit Facility will be treated as an extinguishment of debt and accounted for under the guidelines of ASC 470-05, Debt, Modifications and Extinguishments, and all unamortized debt issuance costs of approximately $1.3 million will be recognized as interest expense as of May 2019. The new debt issuance costs of approximately $0.7 million related to the execution of the Sixth Amendment will be amortized through the maturity date.