Debt

Debt consisted of the following at March 31, 2020 and December 31, 2019:



			March 31, 2020					December 31, 2019
	Interest Rate	Maturity Date	Unamortized Debt Issuance Costs (h)		Carrying Value of Debt (i)			Carrying Value of Debt (i)
Revolving Facility (a)	6.77%	Feb. 2021	$	—	$	—		$	—
First Lien Term Loan (b)	8.77%	Feb. 2021	54		17,185			18,008
Second Lien Term Loan (c)	11.00%	Oct. 2021	—		9,013			9,013
Vehicle Term Loan (d)	5.27%	Dec. 2021	—		634			725
Equipment Term Loan (e)	6.50%	Nov. 2022	—		219			—
Finance leases (f)	6.84%	Various	—		8,218			8,784
Total debt			$	54	35,269			36,530
Debt issuance costs presented with debt					(54		)	(95		)
Total debt, net					35,215			36,435
Less: current portion of long-term debt (g)					(19,871		)	(6,430		)
Long-term debt					$	15,344		$	30,005

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(a)	The interest rate presented represents the interest rate as of March 31, 2020 on the Revolving Facility.


(b)	Interest on the First Lien Term Loan accrues at an annual rate equal to the LIBOR Rate plus 7.25%.


(c)	Interest on the Second Lien Term Loan (as defined below) accrues at an annual rate equal to 11.0%, payable in cash, in arrears, on the first day of each month.


(d)	Interest on the Vehicle Term Loan (as defined below) accrues at an annual rate of 5.27%.


(e)	Interest on the Equipment Term Loan (as defined below) accrues at an annual rate of 6.50%.


(f)	Our finance leases include finance lease arrangements related to fleet purchases and real property with a weighted-average annual interest rate of approximately 6.84%, which mature in varying installments between 2020 and 2029.


(g)	The principal payments due within one year for the First Lien Term Loan, Second Lien Term Loan, Vehicle Term Loan, Equipment Term Loan and finance leases and payment of principal at maturity of the First Lien Term Loan are included in current portion of long-term debt as of March 31, 2020.


(h)	The debt issuance costs as of March 31, 2020 and December 31, 2019 resulted from the amendment to the First Lien Term Loan, done in connection with our acquisition of Clearwater Three, LLC, Clearwater Five, LLC, and Clearwater Solutions, LLC.


(i)	Our Revolving Facility, First Lien Term Loan, Second Lien Term Loan, and finance leases bear interest at rates commensurate with market rates and therefore their respective carrying values approximate fair value.

See below for a discussion of material changes and developments in our debt and its principal terms from those described in Note 12 to the consolidated financial statements in our 2019 Annual Report on Form 10-K.

Indebtedness

As of March 31, 2020, we had $35.3 million of indebtedness outstanding, consisting of $17.2 million under the First Lien Term Loan, $9.0 million under the second lien term loan facility (the “Second Lien Term Loan”) pursuant to the Second Lien Term Loan Agreement, dated August 7, 2017, by and among the lenders party thereto, Wilmington as administrative agent, and the Company (the “Second Lien Term Loan Agreement”), $0.6 million under the Direct Loan Security Agreement ( the “Vehicle Term Loan”) with PACCAR Financial Corp as the secured party, $0.2 million under the Equipment Term Loan and $8.2 million of finance leases for vehicle financings and real property leases. Our Revolving Facility, First Lien Term Loan and Second Lien Term Loan contain certain affirmative and negative covenants, including a fixed charge coverage ratio covenant, as well as other terms and conditions that are customary for revolving credit facilities and term loans of this type. As of March 31, 2020, we were in compliance with all covenants.

Equipment Term Loan

On November 20, 2019, we entered into a Retail Installment Contract (the “Equipment Term Loan”) with RDO Construction Equipment Co. as the secured party. Under the Equipment Term Loan, we were given credit for $0.4 million of rental payments previously paid, and financed the remaining amount due of $0.2 million, including interest, to purchase four trucks. The Equipment Term Loan matures on November 2022, and shall be repaid in monthly installments of $6,842 beginning December 2019 and then each month thereafter, with interest accruing at an annual rate of 6.50%.

Maturity Date Extension

The Revolving Facility and the First Lien Term Loan mature on February 7, 2021, at which time the Company must repay the outstanding principal amount of the Revolving Facility and approximately $15.0 million of the First Lien Term Loan, together with interest accrued and unpaid thereon. During the quarter ended March 31, 2020, the Company initiated discussions with the lenders to extend the scheduled maturity dates for both the Revolving Facility and First Lien Term Loan, and the Company executed a non-binding commitment letter with the lenders to extend the scheduled maturity dates to March 2022. The principal payments that are due within one year for the First Lien Term Loan will be included in the current portion of long-term debt on the condensed consolidated balance sheet until the maturity date extension has been executed. Absent an extension of the maturity date or an amendment or waiver deferring compliance with covenants, we project based on current financial forecasts that we may not have sufficient cash on hand or available liquidity to repay the Revolving Facility and First Lien Term Loan in full on the scheduled maturity date or if they were to become callable prior to scheduled maturity due to noncompliance with covenants. See Note 1 for additional discussion.