DEBT

The Company has a Credit and Security Agreement with KeyBank National Association (as amended, the “CSA”). The CSA consists of (i) a term loan, with outstanding borrowings of

$113.8

million and

$116.0

million at

September 30, 2019

and

December 31, 2018

, respectively and (ii) a

$75

million revolving credit facility (“Revolver”), with

outstanding borrowings at

September 30, 2019

December 31, 2018

. The CSA has a maturity date of

December 11, 2022.

September 30, 2019

and

December 31, 2018

, the carrying value of the debt on the condensed consolidated balance sheet is reflected net of

$1.4

million and

$1.8

million, respectively, of deferred financing costs. During the

nine

months ended

September 30, 2019

, the Company borrowed

$12.0

million from its revolver, all of which was repaid by

September 30, 2019

The weighted-average interest rate in effect was

3.81%

September 30, 2019

and

4.31%

December 31, 2018

and consisted of LIBOR plus the Company’s credit spread, as determined per the terms of the CSA. The Company incurred

$1.3

million and

$1.4

million of interest expense during the

three

months ended

September 30, 2019

and

September 30, 2018

, respectively, and

$4.1

million and

$3.9

million of interest expense during the

nine

months ended

September 30, 2019

and

September 30, 2018

, respectively.

The CSA contains customary representations and warranties, covenants and events of default and financial covenants that measure (i) the ratio of the Company's total funded indebtedness, on a consolidated basis, to the amount of the Company’s consolidated EBITDA, as defined, (“Leverage Ratio”) and (ii) the ratio of the amount of the Company’s consolidated EBITDA to the Company’s consolidated fixed charges. If an event of default occurs, the lenders under the CSA would be entitled to take various actions, including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor. At

September 30, 2019

, the Company was in compliance with its debt covenants, including its most restrictive covenant, the Fixed Charge Coverage Ratio.