LIABILITIES AND LONG-TERM DEBT (Tables)
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3 Months Ended |
Mar. 31, 2018 |
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| LIABILITIES AND LONG-TERM DEBT [Abstract] |
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| Schedule of Maximum Leverage Ratio |
On March 28, 2017, we entered into a Second Amendment to the ARC with terms which increase 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 |
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| Schedule of Minimum Fixed Charge Coverage Ratio |
The Second Amendment also reduces 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 |
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| 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% |
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| Summary of Carrying Amount and Debt Issuance Costs of Long-term Debt |
The following table summarizes the carrying amounts and debt issuance costs of our long-term debt (in thousands):
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March 31, 2018 |
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December 31, 2017 |
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Acquisition loan |
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$ |
45,500 |
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$ |
47,250 |
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Term loan |
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|
17,000 |
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|
|
17,333 |
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Revolving facility |
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|
45,000 |
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|
|
35,000 |
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Total |
|
|
107,500 |
|
|
|
99,583 |
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Debt issuance costs |
|
|
(408 |
) |
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|
(501 |
) |
Total long-term debt |
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$ |
107,092 |
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|
$ |
99,082 |
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|
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|
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Less current portion including loan fees |
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|
8,061 |
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8,061 |
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Total long-term debt, less current portion including loan fees |
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$ |
99,031 |
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$ |
91,021 |
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