Long-Term Debt and Financing Arrangements

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Long-Term Debt and Financing Arrangements

NOTE 10. Long-Term Debt and Financing Arrangements

On July 1, 2017, we entered into a five-year, $350 million unsecured credit agreement (the "Credit Agreement"). Borrowings under the Credit Agreement generally bear interest at a variable rate equal to (i) LIBOR plus a specified margin based upon Hub’s total net leverage ratio (as defined in the Credit Agreement) (the "Total Net Leverage Ratio"), or (ii) the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin based upon the Total Net Leverage Ratio. The specified margin for Eurodollar loans varies from 100.0 to 200.0 basis points per annum. The specified margin for base rate loans varies from 0.0 to 100.0 basis points per annum. Hub must also pay (1) a commitment fee ranging from 10.0 to 25.0 basis points per annum (based upon the Total Net Leverage Ratio) on the aggregate unused commitments and (2) a letter of credit fee ranging from 100.0 to 200.0 basis points per annum (based upon the Total Net Leverage Ratio) on the undrawn amount of letters of credit. Refer to Note 17 "Subsequent Event" for information regarding the new credit agreement.

We have standby letters of credit that expire in 2022. As of December 31, 2021, our letters of credit were $41.3 million.

As of December 31, 2021, we had no borrowings under the Credit Agreement and our unused and available borrowings were $308.7 million. We were in compliance with our debt covenants as of December 31, 2021.

We have entered into various Equipment Notes (“Notes”) for the purchase of tractors, trailers, containers and refrigeration units. The Notes are secured by the underlying equipment financed in the agreements.

Our outstanding Notes are as follows (in thousands):

	December 31,			December 31,
	2021			2020
Interim funding for equipment received and expected to be converted to an equipment note in subsequent year; interest paid at a variable rate	$	17,186		$	8,902
Secured Equipment Notes due on various dates in 2026 commencing on various dates in 2021; interest is paid monthly at a fixed annual rate between 1.48% and 2.41%		94,766			-
Secured Equipment Notes due on various dates in 2025 commencing on various dates in 2020 and 2021; interest is paid monthly at a fixed annual rate between 1.51% and 1.80%		63,308			74,494
Secured Equipment Notes due on various dates in 2024 commencing on various dates in 2017, 2019 and 2020; interest is paid monthly at a fixed annual rate between 2.50% and 3.59%		34,432			49,920
Secured Equipment Notes due on various dates in 2023 commencing on various dates from 2016 to 2019; interest is paid monthly at a fixed annual rate between 2.20% and 4.20%		61,824			112,668
Secured Equipment Notes due on various dates in 2022 commencing on various dates from 2015 to 2017; interest is paid monthly at a fixed annual rate of between 2.20% and 2.96%		3,236			8,943
Secured Equipment Notes due on various dates in 2021 commencing on various dates from 2014 and 2016; interest is paid monthly at a fixed annual rate between 2.02% and 2.96%		-			15,432
		274,752			270,359
Less current portion		(97,273	)		(93,562	)
Total long-term debt	$	177,479		$	176,797

Aggregate principal payments, in thousands, due subsequent to December 31, 2021, are as follows:

Year 1	$	97,273
Year 2		72,971
Year 3		48,031
Year 4		37,257
Year 5		19,220
	$	274,752