Debt Obligations

12 Months Ended

Dec. 31, 2012

(8) Debt Obligations

The following is a summary of the Company's outstanding debt balances at December 31:

(Thousands of dollars)	2012			2011

Long-term notes payable	$	326,704		$	350,000

Less current portion of long-term debt		(26,250	)		(17,500	)

Long-term debt	$	300,454		$	332,500

Scheduled maturities of long-term debt in future years as of December 31, 2012 are as follows (in thousands of dollars):

2013	$	26,250
2014		52,500
2015		87,500
2016		160,454

Total	$	326,704

The Company has a five year secured credit facility with a group of lenders (the "Bank Facility") consisting of a revolving line of credit that provides up to $175.0 million of aggregate borrowing and a $350.0 million term loan. Under the Bank Facility the Company has granted a first priority lien, security interest and collateral assignment of substantially all of its current assets. The Bank Facility matures on November 30, 2016. Borrowings under the Bank Facility bear interest, at the Company's option, at either (A) the highest of (i) the Prime Rate, (ii) the Federal Funds Effective Rate plus 0.5%, and (iii) the Adjusted LIBO Rate for an Interest Period of one month plus 1.0%, in each case plus an Applicable Margin based on the Company's Leverage Ratio or (B) the interest rate equal to (i) the rate for US dollar deposits in the London interbank market for such Interest Period multiplied by (ii) the Statutory Reserve Rate, plus (iii) the Applicable Margin. Throughout the term of the Bank Facility, the Company pays an Unused Commitment Fee which ranges from 0.25 percent to 0.50 percent based on the Company's Leverage Ratio. As of December 31, 2012, $301.7 million of borrowings under the term loan and $25.0 million of borrowings under the revolving line of credit were outstanding. Additionally, there was $10.4 million in letters of credit outstanding against the revolving credit facility. As of December 31, 2012, the interest rate was 2.75% on the credit facility and the Company paid $10.2 million of interest expense in the year ended December 31, 2012. The carrying value of debt is not materially different from its fair value. The Company was in compliance with all financial covenants under the Bank Facility as of December 31, 2012 and had borrowing capacity of $139.6 million.

In addition, the Company's credit facility restricts the ability to declare and pay dividends on common stock when the payment of any such dividend would cause the Company to exceed specified leverage and fixed charge ratios.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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