Note 7 - Debt

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

7. Debt :

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

	As of
	September 30,		December 31,
(in thousands)	2018		2017
Asset-based revolving credit facility due December 8, 2022	$	304,484	$	196,235
Industrial revenue bond due April 1, 2018		-		930
Total debt		304,484		197,165
Less current amount		-		(930	)
Total long-term debt	$	304,484	$	196,235

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

$370

million, including a

$20

million sub-limit for letters of credit and (ii) a

first

in, last out revolving credit facility of up to

$30

million. Under the terms of the ABL Credit Facility, the Company

may

request additional commitments in the aggregate principal amount of up to

$200

million to the extent that existing or new lenders agree to provide such additional commitments. Revolver borrowings are limited to the lesser of a borrowing base, comprised of eligible receivables and inventories, or

$400

million in the aggregate. The ABL Credit Facility matures on

December 8, 2022.

The ABL Credit Facility contains customary representations and warranties and certain covenants that limit the ability of the Company to, among other things: (i) incur or guarantee additional indebtedness; (ii) pay distributions on, redeem or repurchase capital stock or redeem or repurchase subordinated debt; (iii) make investments; (iv) sell assets; (v) enter into agreements that restrict distributions or other payments from restricted subsidiaries to the Company; (vi) incur liens securing indebtedness; (vii) consolidate, merge or transfer all or substantially all of its assets; and (viii) engage in transactions with affiliates. In addition, the ABL Credit Facility contains a financial covenant which requires (i) 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 (

$40.0

million at

September 30, 2018)

or

10.0%

of the aggregate borrowing base (

$40.0

million at

September 30, 2018),

then the Company must maintain a ratio of Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) minus certain capital expenditures and cash taxes paid to fixed charges of at least

1.00

to

1.00

for the most recent

twelve

fiscal month period.

The Company has the option to borrow under its revolver based on the agent’s base rate plus a premium ranging from

0.00%

to

1.50%

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

1.25%

to

2.75%.

As of

September 30, 2018,

the Company was in compliance with its covenants and had approximately

$93

million of availability under the ABL Credit Facility.

As of

September 30, 2018,

$1.6

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.