Annual report pursuant to Section 13 and 15(d)

LONG-TERM DEBT AND LONG-TERM OBLIGATIONS (Tables)

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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