Long-Term Debt And Lines Of Credit

12 Months Ended

Dec. 31, 2023

Long-Term Debt And Lines Of Credit [Abstract]

Long-Term Debt And Lines Of Credit

3.    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 2022 Credit Facilities have a floating interest 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 December 31, 2023 and 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.

We made prepayments totaling $75.0 million plus a regularly scheduled payment of $1.25 million in the first quarter of 2023 on the $100.0 million term loan. We paid the remaining balance of $21.3 million in April 2023. There were no prepayment penalties associated with repayments. There are no significant deferred debt issuance costs capitalized related to the term loan. This prepayment reduced the total borrowing capacity of the 2022 Credit Facilities from $550.0 million to $450.0 million as of December 31, 2023.

‎

The debt outstanding at December 31, 2023 and 2022 consists of the following (in thousands):

		December 31,
		2023		2022
Revolver	$	-	$	-
Term loan		-		97,500
Total		-		97,500
Current portion of long-term debt		-		(5,000)
Long-term debt	$	-	$	92,500

Capitalized interest was not material for any of the periods shown. Summarized below are the total amounts of interest paid during the years ended December 31 (in thousands):

2023	$	2,645
2022		3,704
2021		1,403

The 2022 Credit Facilities contains the following quarterly financial covenants effective as of December 31, 2023:

		Chemed
Description	Requirement	December 31, 2023
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA)	< 3.50 to 1.00	(0.06) to 1.00
Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense)
	> 3.00 to 1.00	151.10 to 1.00

We are in compliance with all debt covenants as of December 31, 2023. We have issued $45.2 million in standby letters of credit as of December 31, 2023 for insurance purposes. Issued letters of credit reduce our available credit under the 2022 Credit Facilities. As of December 31, 2023, we have approximately $404.8 million of unused lines of credit available and eligible to be drawn down under our revolving credit facility.