Debt with Commercial Bank

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt with Commercial Bank

Debt

On March 30, 2020, the Company and certain of its subsidiaries entered into a waiver agreement (the “Waiver”) related to the senior secured credit facility, dated, August 5, 2014, as amended among the Company, Regions Bank and certain other lenders party thereto (the “Credit Facility”). The Waiver provides that so long as the Company’s leverage ratio is below 5.0 to 1.0

for the Company’s fiscal quarter ending March 31, 2020 pursuant to the terms of its compliance certificate required by the Credit Facility, the existing leverage ratio requirement of 3.50 to 1.0 will be waived.

On September 27, 2019, the Company and certain of its subsidiaries entered into the Ninth Amendment (the “Ninth Amendment”) to the Credit Agreement which amended the definitions of “Consolidated EBITDA" to add back the derivative legal settlement, “Indebtedness” to disqualify equity interests to be issued regarding the Yatra Online acquisition, and modified the maximum consolidated net debt leverage ratio allowed.

At March 31, 2020, the Company's Condensed Consolidated Balance Sheets include $5.3 million of remaining deferred financing costs in connection with this Credit Agreement, which are being amortized as a component of interest expense over the five-year term of the financing agreement. In regards to these deferred financing costs, $3.2 million pertains to the revolving line of credit component of the Credit Agreement, and $2.1 million pertains to the term loan component of the Credit Agreement, of which $734 thousand is netted against the current portion and $1.4 million is netted against the long-term portions of the term loan as reported on the Condensed Consolidated Balance Sheets. At December 31, 2019, the Company's Condensed Consolidated Balance Sheets included $5.2 million of remaining deferred financing costs with $3.1 million pertaining to the revolving line of credit component of the Credit Agreement, and $2.1 million pertaining to the term loan component of the Credit Agreement, of which $575 thousand was netted against the current portion and $1.5 million was netted against the long-term portions of the term loan as reported on the Condensed Consolidated Balance Sheets.

At March 31, 2020, the outstanding balance on the revolving line of credit under the Credit Agreement was $438.0 million and the facility carried an interest rate of 4.13%. During the three months ended March 31, 2020, the Company drew zero from its revolving credit facility. The revolving line of credit balance is included in the long-term liabilities section of the Condensed Consolidated Balance Sheets. During the three months ended March 31, 2020, the average and maximum outstanding balances of the revolving line of credit component of the credit facility were $438.0 million, respectively. At December 31, 2019, the outstanding balance on the revolving line of credit with Regions was $438.0 million and the facility carried an interest rate of 4.25%. This balance was included in the long-term liabilities section of the Condensed Consolidated Balance Sheets. During 2019, the average and maximum outstanding balances on the revolving line of credit were $437.2 million and $438.0 million, respectively.

At March 31, 2020, the outstanding balance on the term loan was $272.4 million, of which $22.6 million is due within the next twelve months. $3.8 million of scheduled amortization payments were made during the three months ended March 31, 2020. This term loan also carried an interest rate of 4.13% . The current and long-term portions of the term loan are included in the respective current and long-term sections of the Condensed Consolidated Balance Sheets, the amounts of which were $22.6 million and $249.8 million, respectively at March 31, 2020. At December 31, 2019, the outstanding balance on the term loan was $276.2 million, of which $20.7 million was due within twelve months. This term loan also carried an interest rate of 4.25%.

The Company maintains working capital debt facilities with banks in India for working capital funding requirements to support our foreign exchange and payment remittance businesses. We are required to extend short term credits to franchisee networks (B2B) and corporate customers. Additionally we are required to maintain minimum levels of foreign currency inventory across branches and airport operations. Typically, these facilities carry interest rates of 6.75% to 9%, are rupee-denominated working capital lines, and are collateralized against the receivables of these businesses and existing foreign currency inventory on hand.

As of March 31, 2020 and December 31, 2019, the total of these working capital facilities was $2.7 million and $28.4 million, respectively, and is included in current liabilities in the Company's Condensed Consolidated Balance Sheets.