XML 31 R19.htm IDEA: XBRL DOCUMENT v3.5.0.2
Long-Term Debt
6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Long-Term Debt
Long-Term Debt
On June 28, 2016, we entered into a credit agreement governing a $125.0 million revolving credit facility which expires on June 28, 2021. At June 30, 2016 we had $0 in borrowings and no letters of credit outstanding under the facility, and our available borrowings under the facility were $125 million. At June 30, 2016 the fair value of our debt, which is based on Level 2 valuation inputs, approximated cost.

The interest rate applicable to our initial borrowings is LIBOR plus a yield of 1.75%. Interest on the revolving credit facility is based on a base rate or Eurodollar rate plus an applicable margin that increases as our total leverage ratio increases, with the base rate margin ranging from 0.75% to 1.25% and the Eurodollar rate margin ranging from 1.75% to 2.25% respectively. The revolving credit facility also carries a commitment fee of 0.25% to 0.50% per annum on the unused portion. In conjunction with entering into this agreement, we incurred charges totaling $1.1 million. These charges were capitalized and deferred over the term of the credit facility and are included in other long-term assets on the condensed consolidated balance sheet.

Borrowings under the credit facility are collateralized by substantially all of our assets. The credit agreement contains covenants and restrictions which, among other things, require the maintenance of certain financial ratios, including a total leverage ratio and an interest coverage ratio, and restrict dividend payments and the incurrence of certain indebtedness and other activities, including acquisitions and dispositions. We were in full compliance with these covenants and restrictions as of June 30, 2016.

Subsequent to June 30, 2016, we borrowed $50.0 million under our revolving credit facility. Proceeds from these borrowings were used to fund the cash outflows further discussed in Note 15 to these condensed consolidated financial statements.