Revolving Credit Facility

9 Months Ended

Sep. 30, 2011

Revolving Credit Facility [Abstract]

5.	Revolving Credit Facility

On September 15, 2011, the Company entered into a four-year, $100 million revolving credit facility (the “Facility”), which may be increased to $150 million based on the terms and subject to the conditions set forth in the agreement relating to the Facility (the “Credit Agreement”). The Facility is available for working capital and general corporate purposes, including acquisitions. The Company's obligations under the Facility are secured by 65% of the stock of the Company's captive insurance subsidiary and are guaranteed by all of the Company's domestic subsidiaries. At September 30, 2011, the Company had not drawn on the Facility.

The Facility matures on September 15, 2015. Borrowings under the Facility bear interest at an alternate base rate or LIBOR, at the Company's option, plus an applicable margin. Depending on the Company's leverage ratio, the applicable margin varies (i) in the case of LIBOR loans, from 2.00% to 2.75% and (ii) in the case of alternate base rate loans, from 0.00% to 0.75%. The alternate base rate is the highest of (i) the prime rate most recently published in The Wall Street Journal, (ii) the federal funds rate plus 0.50% and (iii) the 30-day LIBOR rate plus 2.00%. The Company also pays an unused commitment fee on the average daily unused portion of the Facility at a rate of 0.25%. Interest expense and unused commitment fees are recorded in other income (expense).

The Facility contains both affirmative and negative covenants, which the Company believes are customary for arrangements of this nature. Covenants include, but are not limited to, limitations on the Company's ability to incur additional indebtedness, sell material assets, retire, redeem or otherwise reacquire its capital stock, acquire the capital stock or assets of another business, make investments and pay dividends. In addition, the Credit Agreement requires the Company to comply with financial covenants limiting the Company's total funded debt, minimum interest coverage ratio and maximum leverage ratio. The Company was in compliance with all financial covenants under the Credit Agreement at September 30, 2011.