Long-Term Debt And Lines Of Credit

6 Months Ended

Jun. 30, 2022

Long-Term Debt And Lines Of Credit [Abstract]

Long-Term Debt And Lines Of Credit

5.    Long-Term Debt and Lines of Credit

On June 28, 2022, we replaced our existing credit facility with a fifth amended and restated Credit Agreement (“2022 Credit Facilities”). Terms of the 2022 Credit Facilities consist of a five-year $450 million revolver as well as a five-year $100 million term loan. Principal payments of $1.25 million on the term loan are due on the last day of each fiscal quarter, with a final payment due at the end of the agreement. The interest rate on the 2022 Credit Facilities has a floating rate that is generally the secured overnight financing rate (“SOFR”) plus an additional tiered rate which varies based on our current leverage ratio. As of June 30, 2022, the interest rate is SOFR plus 100 basis points. The 2022 Credit Facilities include an expansion feature that provides the Company the opportunity to increase its revolver and or term loan by an additional $250 million.

The debt outstanding as of June 30, 2022 consists of the following:

Revolver	$	16,800
Term loan		100,000
Total		116,800
Current portion of long-term debt		(5,000)
Long-term debt	$	111,800

Debt issuance costs associated with the prior credit agreement were not written off as the lenders did not change and their relative percentage participation in the facility was substantially the same. Deferred financing cost of $1.5 million for the 2022 Credit Facilities were capitalized during the quarter ended June 30,2022.

Scheduled payments of the 2022 Credit Facilities are as follows:

2022	$	2,500
2023		5,000
2024		5,000
2025		5,000
2026		5,000
Thereafter		94,300
	$	116,800

The 2022 Credit Facilities contain the following quarterly financial covenants effective as of June 30, 2022:

Description	Requirement
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA)	< 3.50 to 1.00
Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense)	> 3.00 to 1.00

We are in compliance with all debt covenants as of June 30, 2022. We have issued $46.2 million in standby letters of credit as of June 30, 2022, mainly for insurance purposes. Issued letters of credit reduce our available credit under the 2022 Credit Facilities. As of June 30, 2022, we have approximately $387.0 million of unused lines of credit available and eligible to be drawn down under revolving credit facility.