Long-Term Debt

9 Months Ended

Sep. 30, 2018

Note 7. Long-Term Debt

Long-term debt as of September 30, 2018 and December 31, 2017 was as follows:



	September 30, 2018					December 31, 2017
(in thousands, except percentages)	Debt			Interest Rate		Debt		Interest Rate
Revolving Credit Facility, due March 9, 2023	$	50,000		3.32	%	$	85,000	2.75	%
Term Loan Credit Facility, due July 31, 2021	500,000			3.17	%	—		—	%
Long-Term Debt, Gross	550,000					85,000
Term Loan Credit Facility Unamortized Debt Issuance Costs	(1,032		)			—
Long-Term Debt	$	548,968				$	85,000

Revolving Credit Facility We maintain a revolving credit facility to fund working capital and to finance acquisitions and expansion capital expenditures. On January 31, 2018, in connection with the closing of the Black Diamond Acquisition, we entered into an amendment to increase the capacity on our revolving credit facility from $350 million to $530 million. On March 9, 2018, we entered into an additional amendment to extend the maturity of the facility to March 9, 2023 and increase the borrowing capacity to $800 million. In connection with our revolving credit facility amendments, we incurred $2.0 million of fees and expenses. The borrowing capacity on our revolving credit facility may be increased by up to an additional $350 million subject to certain conditions including compliance with the covenants contained in the credit agreement and requisite commitments from existing or new lenders. During third quarter 2018, we repaid $480 million on our revolving credit facility through the issuance of our term loan credit facility. See Term Loan Credit Facility below.

Borrowings under the revolving credit facility bear interest at a rate equal to an applicable margin plus, at our option, either (a) in the case of base rate borrowings, a rate equal to the highest of (1) the prime rate, (2) the greater of the federal funds rate or the overnight bank funding rate, plus 0.5% and (3) the LIBOR for an interest period of one month plus 1.00%; or (b) in the case of LIBOR borrowings, the offered rate per annum for deposits of dollars for the applicable interest period.

The unused portion of the revolving credit facility is subject to a commitment fee. Commitment fees began to accrue beginning on the date we entered into the revolving credit facility. As of December 31, 2017 and September 30, 2018, the commitment fee rate was 0.2%. Our revolving credit facility unamortized debt issuance costs totaled $1.4 million and $2.9 million as of December 31, 2017 and September 30, 2018, respectively, and are recorded within other noncurrent assets in our consolidated balance sheets.

The revolving credit facility requires us to comply with certain financial covenants as of the end of each fiscal quarter. We were in compliance with such covenants as of September 30, 2018.

Certain lenders that are a party to the credit agreement have in the past performed, and may in the future from time to time perform, investment banking, financial advisory, lending or commercial banking services for us for which they have received, and may in the future receive, customary compensation and reimbursement of expenses.

Term Loan Credit Facility On July 31, 2018, we entered into a three year senior unsecured term loan credit facility that permits aggregate borrowings of up to $500 million. Proceeds from the term loan credit facility were primarily used to repay a portion of the outstanding borrowings under our revolving credit facility and pay fees and expenses in connection with the term loan credit facility transactions. In connection with the term loan credit facility, we incurred $1.1 million of fees and expenses.

Borrowings under the term loan credit facility bear interest at a rate equal to, at our option, either (1) a base rate plus an applicable margin between 0.00% and 0.50% per annum or (2) a Eurodollar rate plus an applicable margin between 1.00% and 1.50% per annum.

The term loan credit facility contains customary representations and warranties, affirmative and negative covenants, and events of default that are substantially the same as those contained in our revolving credit facility. Upon the occurrence and during the continuation of an event of default under the term loan credit facility, the lenders may declare all amounts outstanding under the term loan credit facility to be immediately due and payable and exercise other remedies as provided by applicable law.