Credit Facility

12 Months Ended

Dec. 31, 2019

Credit Facility

CREDIT FACILITY

NOTE 22.           CREDIT FACILITY

In September 2019, in connection with the Artesyn Acquisition Agreement, the Company entered into a credit agreement (“Credit Agreement”) that provided aggregate financing of $500.0 million, consisting of a $350.0 million senior unsecured term loan facility (the “Term Loan Facility”) and a $150.0 million senior unsecured revolving facility the (“Revolving Facility”). Both the Term Loan Facility and Revolving Facility mature on September 10, 2024.

The Revolving Facility and Term Loan Facility bear interest, at the option of the Company, at a rate based on a reserve adjusted Eurodollar Rate or a Base Rate, as defined in the Credit Agreement, plus an applicable margin. Additionally, the Revolving Facility is subject to an unused line fee. As of December 31, 2019, the effective interest rate for the Revolving Facility and Term Loan Facility was 2.55% and the effective rate for the unused line fee was 0.10%. As of December 31, 2019, the Company had $150.0 million available to withdraw on the Revolving Facility and was in compliance with all covenants.

The fair value of the Company’s outstanding debt approximates its carrying value of $339.0 million as of December 31, 2019.

In connection with the entering into of the Credit Agreement, the Company terminated the Loan Agreement, as amended (the "Loan Agreement") which previously provided a revolving line of credit of up to $150.0 million subject to certain funding conditions. The Company expensed all unused line of credit fees at the time of termination of the Loan Agreement.

As of December 31, 2019, the debt obligation on our Consolidated Balance Sheets consists of the following:

Debt:	Amount
Term Loan Facility	$	341,250
Less: debt issuance costs		(2,223)
Total debt		339,027
Less current portion of debt		(17,500)
Total long-term debt	$	321,527

Contractual maturities of the Company’s debt obligations, excluding amortization of debt issuance costs, as of are as December 31, 2019 follows:

	Amount
2020	$	17,500
2021		17,500
2022		17,500
2023		17,500
2024		271,250
Total	$	341,250

Interest expense and unused line of credit fees were recorded in Other income (expense), net, in our Consolidated Statements of Operations as follows:

	Years Ended December 31,
	2019		2018		2017
Interest expense	$	2,994	$	—	$	—
Amortization of debt issuance costs		186		—		—
Unused line of credit fees and other		236		228		66
Total interest expense	$	3,416	$	228	$	66