Long-Term Debt and Financing Arrangements

6 Months Ended

Jun. 30, 2020

Long-Term Debt and Financing Arrangements

NOTE 6. Long-Term Debt and Financing Arrangements

On July 1, 2017, we entered into a $350 million unsecured credit agreement (the “Credit Agreement”) that matures on July 1, 2022. In March 2020, we elected to borrow $100 million under the Credit Agreement as a precautionary measure in order to increase our cash position and preserve financial flexibility in light of uncertainty in the global markets resulting from the COVID-19 pandemic. We repaid the $100 million in June 2020. At June 30, 2020, we had standby letters of credit that expire at various dates in 2020. As of June 30, 2020, our letters of credit were $32.6 million.

Our unused and available borrowings were $317.4 million as of June 30, 2020 and $318.5 million as of December 31, 2019. We were in compliance with our debt covenants as of June 30, 2020 and December 31, 2019.

We have entered into various Equipment Notes (“Notes”) to fund the purchase of tractors, trailers, containers and other equipment. The Notes are secured by the underlying equipment financed with proceeds from the Notes.

	June 30,			December 31,
	2020			2019
	(in thousands)

Interim funding for a deposit on equipment to be received in late 2020; interest paid monthly at a variable rate		3,820			-

Secured Equipment Notes due on various dates in 2025 commencing on various dates in 2020; interest is paid monthly at a fixed annual rate between 1.51% and 1.80%		21,840			-

Secured Equipment Notes due on various dates in 2024 commencing on various dates in 2018, 2019 and 2020; interest is paid monthly at a fixed annual rate between 2.49% and 3.59%		56,734			62,690

Secured Equipment Notes due on various dates in 2023 commencing on various dates in 2018 and 2019; interest is paid monthly at a fixed annual rate between 2.23% and 4.16%		133,499			153,350

Secured Equipment Notes due on various dates in 2022 commencing on various dates in 2017; interest is paid monthly at a fixed annual rate of between 2.16% and 2.85%		12,201			16,892

Secured Equipment Notes due on various dates in 2021 commencing on various dates from 2016 to 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96%		25,034			35,076

Secured Equipment Notes due on various dates in 2020 commencing on various dates from 2015 to 2016; interest is paid monthly at a fixed annual rate between 1.84% and 2.78%		5,677			13,617

		258,805			281,625

Less current portion		(90,948	)		(94,691	)
Total long-term debt	$	167,857		$	186,934