Revolving Credit Facility

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Revolving Credit Facility

Revolving Credit Facility

Our revolving credit facility provides for maximum borrowings of $30.0 million which is provided by BOKF, NA dba Bank of Oklahoma, formerly known as Bank of Oklahoma, N.A. ("Bank of Oklahoma"). Under the line of credit, there is one standby letter of credit totaling $0.8 million. Borrowings available under the revolving credit facility at June 30, 2016 were $29.2 million. Interest on borrowings is payable monthly at LIBOR plus 2.5%. No fees are associated with the unused portion of the committed amount. We had no outstanding balance under the revolving credit facility at June 30, 2016 and December 31, 2015. The termination date of the revolving credit facility is July 27, 2016.

As of June 30, 2016, we were in compliance with our financial covenants. These covenants require that we meet certain parameters related to our tangible net worth, total liabilities to tangible net worth ratio and working capital. At June 30, 2016, our tangible net worth was $195.0 million and met the requirement of being at or above $95.0 million. Our total liabilities to tangible net worth ratio was 0.32 to 1, and met the requirement of not being above 2 to 1. Our working capital was $91.5 million and met the requirement of being at or above $40.0 million.

Effective July 27, 2016, the Company amended its revolving credit facility with the Bank of Oklahoma. The amendment extends the termination date of the revolving credit facility to July 27, 2018, eliminates the covenant requirement for the working capital requirement of being at or above $40.0 million and modifies the tangible net worth covenant requirement from $95.0 million to $125.0 million.