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REVOLVING CREDIT FACILITY
12 Months Ended
Dec. 31, 2012
REVOLVING CREDIT FACILITY  
REVOLVING CREDIT FACILITY

NOTE 4 - REVOLVING CREDIT FACILITY

 

At December 31, 2012, the Company had a $125 million senior secured revolving credit facility with JP Morgan Chase Bank, NA, as Administrative Agent, Bank of America, as Syndication Agent and certain other lenders.  The facility consists of a $125 million credit line with a maturity date of December 2, 2015 and an “accordion” feature providing for potential future expansion of the facility to $175 million.  Borrowings (other than letters of credit) under the credit facility are at either the bank’s prime rate plus a margin (ranging from 1.25% to 2.25%, currently 1.25%) or LIBOR plus a margin (ranging from 2.25% to 3.25%, currently 2.25%).  The margin for prime rate or LIBOR borrowings is determined by the Company’s leverage.  Borrowings under the Facility are secured by a first priority perfected security interest in all tangible and intangible assets of the Company, and all existing and future direct and indirect subsidiaries of the Company, as guarantors.

 

The weighted average prime rate-based interest rates were 4.50% and 4.50% for the year ended December 31, 2012 and 2011, respectively.  The weighted average LIBOR rate was 2.68% and 2.59% for 2012 and 2011, respectively.  The Company pays a commitment fee quarterly of 0.30% to 0.50% on the average daily unused facility balance based on leverage. Borrowings are subject to various covenants including a multiple of 3.0 times earnings before interest, taxes, depreciation and amortization (“EBITDA”). “EBITDA” may include “Acquired EBITDA” from proforma acquisitions pursuant to a calculation rider, up to 50% of “Adjusted EBITDA”, as defined. Borrowings under the facility may be used for general corporate purposes, including acquisitions. As of December 31, 2012, the formula permitted $97.8 million to be used, of which no amounts were outstanding. The Company has irrevocable letters of credit totaling $6.4 million outstanding in connection with its self-insurance programs. Thus, a total of $91.4 million was available for use at December 31, 2012. The Facility is subject to various financial covenants. As of December 31, 2012, the Company was in compliance with the covenants. Under the most restrictive of its covenants, the Company was required to maintain minimum net worth of at least $156.5 million at December 31, 2012.  At such date, the Company’s net worth was approximately $204.3 million.