NOTE 10 – LONG-TERM DEBT

All of our debt under DXP’s credit facility has been classified as current because our credit facility matures on March 31, 2018. DXP does not currently have the liquid funds necessary to repay the credit facility debt at maturity. Based upon discussions with investment bankers, DXP management believes that it is probable that DXP will have the ability to refinance the current debt before maturity. DXP’s Board of Directors has approved a plan to refinance the credit facility. This plan could include institutional debt or equity, combined with an asset based revolving loan.

Long-term debt consisted of the following at March 31, 2017 and December 31, 2016 (in thousands):

	March 31, 2017			December 31, 2016

Line of credit	$	153,800		$	147,600
Term loan		70,875			74,500
Promissory note payable in monthly installments at 2.9% through January 2021, collateralized by equipment		3,366			3,577
Less unamortized debt issuance costs		(822	)		(992	)
		227,219			224,685
Less: Current portion		(224,715	)		(51,354	)
Long-term debt less current maturities	$	2,504		$	173,331

On July 11, 2012, DXP entered into a credit facility with Wells Fargo Bank National Association, as Issuing Lender, Swingline Lender and Administrative Agent for the lenders (as amended, the “Original Facility”). On January 2, 2014, the Company entered into an Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, as Issuing Lender and Administrative Agent for other lenders (as amended by that certain First Amendment to the Amended and Restated Credit Agreement, dated as of August 6, 2015 (the “First Amendment”), that certain Second Amendment to the Amended and Restated Credit Agreement, dated as of September 30, 2015 (the “Second Amendment”), that certain Third Amendment to the Amended and Restated Credit Agreement, dated as of May 12, 2016 (the “Third Amendment”), that certain Fourth Amendment to the Amended and Restated Credit Agreement, dated as of August 15, 2016 (the “Fourth Amendment”), and that certain Fifth Amendment to the Amended and Restated Credit Agreement, dated as of November 28, 2016 (the “Fifth Amendment” and as so amended, the “Facility”), amending and restating the Original Facility. Pursuant to the Facility, as of March 31, 2017, the lenders named therein provided to DXP a $70.9 million term loan and a $190 million revolving line of credit. The Facility expires on March 31, 2018. Loans made from the Facility may be used for working capital and general corporate purposes of DXP and its subsidiaries. As of March 31, 2017, the aggregate principal amount of revolving loans outstanding under the facility was $153.8 million.

Amortization payments are payable at $15.625 million per quarter for the fiscal quarter periods ending March 31, 2017 and thereafter. On October 31, 2016, DXP prepaid $12 million of the $15.625 million amortization payment due on March 31, 2017. At March 31, 2017, the aggregate principal amount of term loan outstanding under the Facility was $70.9 million.

On March 31, 2017, the LIBOR based rate in effect under the Facility was LIBOR plus 5.0% and the prime based rate of the Facility was prime plus 4.0%. At March 31, 2017, $224.7 million was borrowed under the Facility at a weighted average interest rate of approximately 6.0%. At March 31, 2017, the Company had $29.9 million available for borrowing under the Facility.

Commitment fees of 0.50% per annum are payable on the portion of the Facility capacity not in use at any given time on the line of credit. Commitment fees are included as interest in the Condensed Consolidated Statements of Operations.

The Facility contains financial covenants defining various financial measures and levels of these measures with which the Company must comply monthly. Substantially all of the Company’s assets are pledged as collateral to secure the credit facility.