LONG-TERM OBLIGATIONS
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Mar. 31, 2013
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LONG-TERM OBLIGATIONS | NOTE 3: LONG-TERM OBLIGATIONS
The following is a summary of long-term obligations outstanding (in thousands):
Credit Facilities
We have a $325.0 million revolving loan senior credit facility with a maturity date of December 2015. We have the right, subject to compliance with the covenants as set forth in the credit facility agreement, to increase the facility up to a maximum of $375.0 million. The credit facility is secured by liens on our land and buildings and substantially all of our personal property.
Borrowings under the senior credit facility bear interest at various rates based on our leverage ratio with two rate options at the discretion of management as follows: (1) for base rate advances, borrowings bear interest at prime rate plus 75 to 175 basis points; and (2) for LIBOR rate advances, borrowings bear interest at LIBOR rate plus 175 to 275 basis points. At March 31, 2013, borrowings of $214.0 million under this facility had a weighted average interest rate of 3.1%. The average amount of borrowings under this facility during the first quarter of 2013 was $199.7 million, at a weighted average interest rate of 3.1%. The maximum amount outstanding during the first quarter of 2013 was $214.0 million.
The financial covenants contained in the credit facility include a total debt leverage ratio and a fixed charge coverage ratio (all as defined in our credit facility agreement). The leverage ratio is not permitted to exceed 3.00 to 1.00 and the fixed charge coverage ratio is not permitted to be less than 1.25 to 1.00. As of March 31, 2013, we were in compliance with all financial covenants and the amount available for additional borrowings under the credit facility under the most restrictive financial covenant was approximately $43.9 million.
Other restrictive covenants contained in our credit facility include limitations on incurring additional indebtedness and completing acquisitions. We generally cannot incur indebtedness outside the credit facility, with the exception of capital leases, up to $15.0 million, and subordinated debt, up to $100 million. In addition, for acquisitions we must be able to demonstrate that, on a pro forma basis, we would be in compliance with our covenants during the four quarters prior to the acquisition, and bank permission must be obtained for acquisitions in which cash consideration exceeds $125.0 million or total consideration exceeds $175.0 million. The total consideration for all acquisitions consummated during the term of our credit facility may not exceed $300.0 million in the aggregate without lender permission.
Capital Leases
We lease certain equipment under capital leases that generally require monthly payments with final maturity dates during various periods through 2017. As of March 31, 2013, our capital leases had a weighted-average interest rate of approximately 6.2%.
Note Payable
During 2011 we entered into a note payable related to a software license agreement that bears interest of approximately 2.2% and is payable quarterly through September 2014.
Acquisition-related Liabilities
Amounts recorded in connection with acquisition-related liabilities as of March 31, 2013 and December 31, 2012 are as follows:
De Novo Legal LLC
In connection with the acquisition of De Novo Legal LLC (“De Novo”) on December 28, 2011, a portion of the purchase price is being held by us and deferred until June 2013 for potential indemnification claims. This amount has been discounted using an appropriate imputed interest rate.
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