Notes Payable and Other Noncurrent Liabilities

6 Months Ended

Jun. 30, 2020

Notes Payable and Other Noncurrent Liabilities

Notes Payable and Other Noncurrent Liabilities

10. Notes Payable and Other Noncurrent Liabilities

We entered into an amended and restated credit agreement dated January 22, 2019 and two related amendments dated January 31, 2019 and dated February 1, 2019, respectively, that together provide a credit facility of $325,000 comprised of a term loan facility of $243,750 and a revolving credit facility of $81,250, both with a five-year maturity date. The term facility is subject to quarterly amortization of principal, commencing with the fiscal quarter ended June 30, 2019, in equal installments of 5% of the principal amount of the term facility per quarter. Both the term loan and revolver have monthly interest payments currently at 30 Day LIBOR plus an applicable margin of 2%. The proceeds of the term loan, together with $6,250 drawn under the revolver and operating cash on hand were used to complete the Acquisition. Concurrent with the amendment of the credit agreement and Acquisition, we repaid our existing term loan of $59,850 and our cash collateral of $61,667 was released. The Company concluded that the amended and restated credit agreement is considered a loan modification. Accordingly, the Company allocated the costs paid to the bank consortium based on the borrowing dollars and recorded an asset of $596 and a contra liability of $1,639, which are related to our revolver and term loan, respectively, that is being amortized to interest expense over the five-year maturity date. Additionally, the Company expensed $150 of third-party costs in the first quarter of 2019 related to this loan modification.

The Company entered into a further amendment for the credit facility on October 31, 2019. This amendment increased the revolving commitment by $68,750 to $150,000, while reducing the term loan by the same $68,750 to $150,625. The Company concluded that this amendment is considered a loan modification. The amended and restated credit agreement contains standard covenants that, among other things, restrict the Company’s ability to incur additional debt or make certain investments, and require the Company to achieve certain financial ratios and maintain certain financial conditions. The Company’s obligations under the credit facility are secured by its assets, including all rights,

benefits and payments under the Secured Note and the Master Services Agreement. As of June 30, 2020, the Company is in compliance with its debt covenants.

	As of June 30,		As of December 31,
	2020		2019
Notes Payable
Note payable, quarterly payment of $8,368 starting December 31, 2019; interest at 30-Day LIBOR plus 2.00% (2.17% at June 30, 2020) through January 22, 2024	$	124,346	$	140,918
Revolving line of credit; interest at 30-Day LIBOR plus 2.0% (2.17% at June 30, 2020)		—		—
		124,346		140,918
Less: Current portion		33,144		33,144
	$	91,202	$	107,774

Payments due under the notes payable obligations are as follows as of June 30, 2020:

2020	$	16,572
2021		33,144
2022		33,144
2023		33,145
2024		8,341
Total	$	124,346