Credit Agreement

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Credit Agreement

Credit Agreement

In September 2013, the Company entered into a credit agreement (the "Credit Agreement") with Wells Fargo Bank, National Association, as administrative agent, and the lenders from time to time party thereto. The Credit Agreement provides for a $75 million revolving credit facility with a $10 million letter of credit sub-limit. Loans under the Credit Agreement mature on September 25, 2018. The Credit Agreement permits the Company to request one or more increases in the aggregate commitments provided that such increases do not exceed $25 million in the aggregate. The Company expects to use the proceeds from any revolving loans under the credit facility for general corporate purposes, including future acquisitions. The Company's obligations under the Credit Agreement are guaranteed by certain of its domestic subsidiaries and secured by substantially all of the Company's and the subsidiary guarantors’ assets. The Company had not drawn any funds under the credit facility to date.

Amounts drawn under the Credit Agreement bear interest, at the Company's election, at a Eurodollar rate plus a margin of 1.75% per annum, or an alternate base rate equal to the highest of (i) the prime rate, (ii) the federal funds rate plus 0.50%, and (iii) LIBOR for an interest period of one month plus 1.75%. The Company is required to pay a commitment fee of 0.25% per annum on the aggregate undrawn amount of the commitments under the credit facility.

On November 5, 2014, the Company entered into Amendment Number One (“Amendment”) to the Credit Agreement. The Amendment increases the amount of the Company's common stock that may be repurchased by the Company in open market transactions authorized by its Board of Directors, together with any repurchases of its common stock from any consultants, employees, officers or directors of the Company or any of its subsidiaries following the death, disability, retirement or termination of employment of such employees, officers or directors, from $25 million to $50 million per year.

The Credit Agreement, as amended, contains customary affirmative and negative covenants, including, among other things, restrictions on indebtedness, liens, investments, mergers, dispositions, dividends and other distributions. The Credit Agreement, as amended, contains financial covenants that require the Company to, among other things, maintain a maximum consolidated total leverage ratio and a minimum consolidated fixed charge coverage ratio, in each case, as of the last day of each quarter. The Company was in full compliance with all covenants as of December 31, 2015. On January 5, 2016, this Credit Agreement was replaced by the below.

On January 5, 2016, we entered into a $400 million secured credit facility pursuant to a credit agreement, by and among us, the lenders from time to time party thereto, Wells Fargo Securities, LLC, as sole lead arranger and Wells Fargo Bank, National Association, as administrative agent (the “Credit Agreement”). See Note 14, Subsequent Events, for additional discussion.