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Long-Term Debt
9 Months Ended
Sep. 30, 2011
Long-Term Debt [Abstract] 
Long-Term Debt

9. LONG-TERM DEBT

 

Long-term debt consists of the following (in thousands):

 

 

 

September 30,

2011

 

December 31,

2010

Senior Subordinated 8% Notes recorded net of unamortized discount of $1,767 and $2,027 in 2011 and 2010

 

$

202,233

 

$

201,973

Other debt

 

 

4,842

 

 

5,224

Total debt

 

 

     207,075

 

 

207,197

Less current maturities

 

 

            408

 

 

408

Total long-term debt

 

$

     206,667

 

$

206,789

 

Standby letters of credit of $14,342,000 have been issued under the 2009 Senior Credit Agreement to third parties on behalf of the Company as of September 30, 2011. These letters of credit reduce the amount otherwise available under the revolving credit facility. As of September 30, 2011, the Company had $125,360,000 of availability under the revolving credit facility.

 

Borrowings under the 2009 Senior Credit Agreement are secured by the trade receivables, inventory, personal property and equipment, and certain real property of the Company's significant domestic subsidiaries. The 2009 Senior Credit Agreement provides for a revolving credit facility and letters of credit in an aggregate amount that do not exceed the lesser of (i) $200 million or (ii) a borrowing base determined by reference to the trade receivables, inventories, and property, plant, and equipment of the Company's significant domestic subsidiaries. The revolving credit facility is committed through August 30, 2012. The Company amended the 2009 Senior Credit Agreement on October 11, 2011 to significantly extend the maturity date of the debt at competitive interest rates in the current capital market. See Note 19 of the consolidated financial statements for more information regarding this subsequent event.

 

Borrowings under the revolving credit facility bear interest at a variable rate based upon the London Interbank Offered Rate (LIBOR), with a LIBOR floor of 1.50%, plus 3.25% or, at the Company's option, an alternate base rate. The revolving credit facility also carries an annual facility fee of 0.50% on the entire facility, whether drawn or undrawn, and fees on outstanding letters of credit which are payable quarterly.

 

On a trailing four-quarter basis, the 2009 Senior Credit Agreement includes a single financial covenant that requires the Company to maintain a minimum fixed charge coverage ratio of 1.25 to 1.00 at the end of each quarter. As of September 30, 2011, the Company was in compliance with this financial covenant. The 2009 Senior Credit Agreement contains other provisions and events of default that are customary for similar agreements and may limit the Company's ability to take various actions. The Company's significant domestic subsidiaries have guaranteed the obligations under the Senior Credit Agreement.

 

On December 8, 2005, the Company issued $204,000,000 of Senior Subordinated 8% Notes (8% Notes), due December 1, 2015, at a discount to yield 8.25%. The 8% Notes are guaranteed by certain existing and future domestic subsidiaries and are not subject to any sinking fund requirements.