Debt

The Company’s debt is comprised of the following components:

	As of
	March 31,			December 31,
(in thousands)	2017			2016
Asset-based revolving credit facility due June 30, 2019	$	192,971		$	164,599
Industrial revenue bond due April 1, 2018		1,825			1,825
Total debt		194,796			166,424
Less current amount		(1,825	)		(1,825	)
Total long-term debt	$	192,971		$	164,599

The Company’s existing asset-based credit facility (the ABL Credit Facility) is collateralized by the Company’s accounts receivable and inventory. The ABL Credit Facility consists of a revolving credit line of

$365

million. Revolver borrowings are limited to the lesser of a borrowing base, comprised of eligible receivables and inventories, or

$365

million in the aggregate. The ABL Credit Facility matures on

June

30,

2019.

The ABL Credit Facility requires the Company to comply with various covenants, the most significant of which include: (i) until maturity of the ABL Credit Facility, if any commitments or obligations are outstanding and the Company’s availability is less than the greater of

$30

million or

10.0%

of the aggregate amount of revolver commitments

($36.5

million at

March

31,

2017),

then the Company must maintain a ratio of EBITDA minus certain capital expenditures and cash taxes paid to fixed charges of at least

1.00

for the most recent

twelve

fiscal month period; (ii) limitations on dividend payments and common stock repurchases; and (iii) restrictions on additional indebtedness. The Company has the option to borrow under its revolver based on the agent’s base rate plus a premium ranging from

0.00%

0.25%

or the London Interbank Offered Rate (LIBOR) plus a premium ranging from

1.25%

3.00%.

As of

March

31,

2017,

the Company was in compliance with its covenants and had approximately

$109

million of availability under the ABL Credit Facility.

As of

March

31,

2017,

$1.8

million of bank financing fees were included in “Prepaid expenses and other” and “Other long-term assets” on the accompanying Consolidated Balance Sheets. The financing fees are being amortized over the

five

-year term of the ABL Credit facility and are included in “Interest and other expense on debt” on the accompanying Consolidated Statements of Comprehensive Income.

As part of the CTI acquisition in

July

2011,

the Company assumed approximately

$5.9

million of Industrial Revenue Bond (IRB) indebtedness

($1.8

million at

March

31,

2017).

The bond matures in

April

2018,

with the option to provide principal payments annually on

April

1st.

April

2017,

the Company made

an optional principal payment of

$0.9

million. Since the IRB is remarketed annually, it is included in “Current portion of long-term debt” on the accompanying Consolidated Balance Sheets. Interest is payable monthly, with a variable rate that resets weekly. As a security for payment of the bonds, the Company obtained a direct pay letter of credit issued by JPMorgan Chase Bank, N.A. The letter of credit reduces annually by the principal reduction amount. The interest rate at

March

31,

2017

was

1.1

% for the IRB debt.

CTI entered into an interest rate swap agreement to reduce the impact of changes in interest rates on the above IRB. At

December

31,

2016,

the effect of the swap agreement on the bond was to fix the rate at

3.46%.

The swap agreement matures in

April

2018,

and is reduced annually by the amount of the optional principal payments on the bond. The Company is exposed to credit loss in the event of nonperformance by the other parties to the interest rate swap agreement. However, the Company does not anticipate nonperformance by the counterparties.