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Revolving Credit Facility
3 Months Ended
Mar. 31, 2014
Revolving Credit Facility  
Revolving Credit Facility

5.                                      Revolving Credit Facility

 

At March 31, 2014, 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”).  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 the London Interbank Offered Rate (LIBOR) plus a margin (ranging from 2.25% to 3.25%, 2.50% at March 31, 2014).  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 rate was 4.50% for both the three months ended March 31, 2014 and 2013.  The weighted average LIBOR rates were 2.45% and 2.54% for the three months ended March 31, 2014 and 2013, respectively.  The Company pays a quarterly commitment fee 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, income tax, 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 March 31, 2014, the formula permitted $27.0 million to be used.  The Company had irrevocable letters of credit totaling $7.1 million outstanding in connection with the Company’s self-insurance programs, which resulted in a total of $19.9 million being available for use at March 31, 2014.  As of March 31, 2014, the Company was in compliance with the Facility’s various financial covenants.  Under the most restrictive of its covenants, the Company was required to maintain minimum net worth of at least $161.3 million at March 31, 2014.  At such date, the Company’s net worth was approximately $215.5 million.