LONG-TERM DEBT AND LONG-TERM OBLIGATIONS (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS [Abstract] |
|
Long-term Debt and Long-term Obligations |
Long-term debt and long-term obligations at December 31 are summarized as follows:
|
|
2017 |
|
|
2016 |
|
|
|
(thousands of dollars) |
|
Revolving note to domestic banks (A) |
|
$ |
35,000 |
|
|
$ |
9,000 |
|
Term note to domestic banks (B) |
|
|
47,250 |
|
|
|
56,000 |
|
Term note to domestic banks (C) |
|
|
17,333 |
|
|
|
19,000 |
|
Loan fees |
|
|
(501 |
) |
|
|
(748 |
) |
|
|
|
|
|
|
|
|
|
Total long-term debt |
|
|
99,082 |
|
|
|
83,252 |
|
|
|
|
|
|
|
|
|
|
Less current portion including loan fees |
|
|
8,061 |
|
|
|
10,145 |
|
|
|
|
|
|
|
|
|
|
Total long-term debt, less current portion including loan fees |
|
$ |
91,021 |
|
|
$ |
73,107 |
|
|
Schedule of Maximum Leverage Ratio |
On March 28, 2017, we entered into a Second Amendment to the ARC with terms which increased the Maximum Consolidated Leverage Ratio financial covenant of 3.25x to 4.00x at March 31, 2017, and 4.25x at June 30, 2017, before stepping down to 3.75x at September 30, 2017, 3.50x at December 31, 2017, and reverting to the original financial covenant of 3.25x at March 31, 2018.
For Fiscal Quarter Ending |
Maximum Consolidated Leverage Ratio |
March 31, 2017 |
4.00 to 1.00 |
June 30, 2017 |
4.25 to 1.00 |
September 30, 2017 |
3.75 to 1.00 |
December 31, 2017 |
3.50 to 1.00 |
March 31, 2018 and each fiscal quarter thereafter |
3.25 to 1.00 |
|
Schedule of Minimum Fixed Charge Coverage Ratio |
The Second Amendment also reduced the Minimum Consolidated Fixed Charge Coverage Ratio of 1.25x to 1.10x at March 31, 2017, 1.05x at June 30, 2017 and September 30, 2017, 1.10x at December 31, 2017, before reverting to the original financial covenant of 1.25x at March 31, 2018.
For Fiscal Quarter Ending |
Minimum Consolidated
Fixed Charge Coverage Ratio
|
March 31, 2017 |
1.10 to 1.00 |
June 30, 2017 |
1.05 to 1.00 |
September 30, 2017 |
1.05 to 1.00 |
December 31, 2017 |
1.10 to 1.00 |
March 31, 2018 and each fiscal quarter thereafter |
1.25 to 1.00 |
|
Schedule of Pricing Levels for Leverage Ratios |
Also, under the terms of the Second Amendment, two additional levels of pricing were added – levels 4 and 5.
Level |
Consolidated Leverage Ratio |
LIBOR Margin |
Base Rate Margin |
Commitment Fee |
1 |
Less than 1.50 to 1.00 |
2.00% |
1.00% |
0.25% |
2 |
Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00 |
2.25% |
1.25% |
0.25% |
3 |
Greater than or equal to 2.00 to 1.00 but less than 3.00 to 1.00 |
2.50% |
1.50% |
0.375% |
4 |
Greater than or equal to 3.00 to 1.00 but less than 3.50 to 1.00 |
2.75% |
1.75% |
0.375% |
5 |
Greater than or equal to 3.50 to 1.00 |
3.00% |
2.00% |
0.375% |
|
Principal Payments of Long-term Debt |
Principal payments of long-term debt for the next two years and thereafter ending December 31 are as follows:
Year Ending December 31, |
|
Long-Term Debt |
|
|
|
(thousands of dollars) |
|
2018 |
|
$ |
8,333 |
|
2019 |
|
|
91,250 |
|
Total |
|
$ |
99,583 |
|
|