Credit Agreement

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt

Credit Agreement

In March 2017, we amended our revolving credit facility to increase our net aggregate availability from $150 million to $153 million. We maintained the accordion feature which allows us to increase the amount of the credit facility from $153 million to $200 million, subject to lenders' approval. There were no other changes to the credit agreement's terms and conditions.

The credit facility is for general corporate purposes and is utilized to meet our seasonal working capital requirements. The credit facility matures in February 2021. The credit agreement provides the lenders with a collateral security interest in substantially all of our assets and those of our subsidiaries and requires us to comply with, among other things, a maximum leverage ratio and a minimum interest coverage ratio. Under the terms of the credit agreement we pay a variable rate of interest and a commitment fee based on our leverage ratio.

As of September 30, 2017, we had no outstanding borrowings and $3.15 million in outstanding letters of credit. Our borrowing capacity was $150 million. We were in compliance with all financial covenants.