Note 9 - Debt

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

9.

     

Debt:

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

	As of December 31,
(in thousands)	2019		2018
Asset-based revolving credit facility due December 8, 2022	$	192,925	$	302,530
Total debt		192,925		302,530
Less current amount		-		-
Total long-term debt	$	192,925	$	302,530

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

$445

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

$475

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 the Company’s 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 (

$47.5

million at

December 31, 2019)

or

10.0%

of the aggregate borrowing base (

$28.9

million at

December 31, 2019)

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

0.25%

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

1.25%

to

2.75%.

As of

December 31, 2019,

the Company was in compliance with its covenants and had approximately

$93.3

million of availability under the ABL Credit Facility.

As of

December 31, 2019,

and

December 31, 2018,

$1.3

million and

$1.6

million, respectively, 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. On

March 1, 2018,

the Company made the final

$0.9

million payment on the IRB and the letter of credit and fixed interest rate swap associated with the IRB were terminated.

Scheduled Debt Maturities, Interest, Debt Carrying Values

The Company’s principal payments over the next

five

years are detailed in the table below:

(in thousands)	2020		2021		2022		2023		2024		Total
ABL Credit Facility	$	-	$	-	$	192,925	$	-	$	-	$	192,925
Total principal payments	$	-	$	-	$	192,925	$	-	$	-	$	192,925

The overall effective interest rate for all debt, exclusive of deferred financing fees and deferred commitment fees, amounted to

4.0%,

3.7%

and

3.0%

in

2019,

2018

and

2017,

respectively. Interest paid totaled

$11.0

million,

$10.2

million and

$6.4

million for the years ended

December 31, 2019,

2018

and

2017,

respectively. Average total debt outstanding was

$257.6

million,

$275.3

million and

$200.6

million in

2019,

2018

and

2017,

respectively.