LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS

Long-term debt and capital lease obligations consist of the following:



	December 31,
	2015			2014
Second priority senior secured notes at a fixed rate of 7.375% at December 31, 2015 and December 31, 2014	$	234,175		$	245,000
Missouri IRBs at fixed rate of 2.80% at December 31, 2015 and December 31, 2014	6,901			7,334
Capital Leases, at fixed rates ranging from 3.00% to 7.73% at December 31, 2015 and 2.04% to 7.73% at December 31, 2014	11,708			13,288
Notes payable, principal and interest payable monthly, at fixed rates, up to 2.56% at December 31, 2015 and December 31, 2014	1,750			3,356
Debt issuance cost (1)	(4,539		)	(5,909		)
Total debt	249,995			263,069
Less current installments	2,362			3,424
Total long-term debt and capital lease obligations	$	247,633		$	259,645

(1) During 2015 the Company adopted FASB Accounting Standards Update No. 2015-03 which requires certain debt issuance costs to be presented as a direct deduction from the carrying value of the associated debt liability. Prior year balances have been revised to reflect the current year presentation.

On June 19, 2014, the Company issued $250,000 in second-priority senior secured notes maturing on July 15, 2019. During 2014 and 2015, the Company repurchased and retired $5,000 and $10,825, respectively, of the outstanding notes at a premium of 1.125% and 0.0%, respectively, plus accrued interest. Obligations under these notes are secured by substantially all of the Company’s assets and bear interest at 7.375%, paid semi-annually in January and July. In addition, on June 19, 2014, the Company used the proceeds from the issuance of these notes to settle and terminate its existing term loan and also modified its revolving credit agreement.

The modified revolving credit agreement, entered into on June 19, 2014, provides for a revolving credit facility of up to $90,000. Under the agreement, the co-collateral agents may establish a reserve against the facility. At December 31, 2015, the reserve established was $15,000, which reduced the maximum availability to $75,000. Based on the amount of eligible assets at December 31, 2015 and considering outstanding letters of credit of $1,250, available borrowings were further reduced to $45,704. The maximum amount, less reserves, available for borrowing at levels below $30,000 are based on a sum of 45% of eligible receivables, 30% of eligible inventories and an additional amount of eligible equipment up to 20% of total borrowings under the facility. The maximum amount, less reserves, available for borrowing at levels above $30,000 are based on a sum of 75% of eligible receivables, 45% of eligible inventories and an additional amount of eligible equipment up to 20% of total borrowings under the facility. Borrowings under the facility are secured by a first lien on substantially all of the Company’s assets and bear interest at either the LIBOR rate plus a margin of 3.00% to 3.50% or the alternate base rate (“ABR”) which is the highest of the following plus a margin of 2.00% to 2.50%, respectively, with the applicable margins for the revolving credit facility subject to a grid based on the average availability ratio of the Company for the most recently completed quarter:

•Prime rate,

•Federal funds rate plus 0.5%, or,

•The adjusted Eurodollar rate for an interest period of one month plus 1%.

For the year ended December 31, 2015, the average debt outstanding on the revolving credit facility was $271 which accrued interest at an average rate of 4.76%. No amounts were outstanding on the revolving credit facility at December 31, 2015.

The Company is required to pay a commitment fee of between 0.375% and 0.5% per annum on the unused portion of the revolving credit facility, depending on the average revolver usage during the period as compared to the total available borrowings under the facility. At December 31, 2015, the commitment fee required was 0.5%.

The revolving credit loan facility matures on the earlier of the fifth year anniversary date, July 15, 2019, or the date that is 91 days prior to the maturity date of the senior secured notes unless the notes are repaid, refinanced or otherwise satisfied in full. The maturity dates are subject to acceleration upon occurrence of an event of default. An event of default under the revolving credit agreement includes, among other things, failure to pay any material indebtedness, acceleration of payments by any lender prior to scheduled maturity, or judgments rendered against the Company requiring payments at or above certain levels.

The credit agreement contains a covenant that requires us to comply with a maximum first priority debt to EBITDA ratio on a quarterly basis. In addition, the agreement also contains certain restrictive covenants that limit and in some circumstances prohibit, our ability to, among other things, incur additional debt, sell, lease or transfer our assets, make investments, guarantee debt or obligations, create liens, and enter into certain merger, consolidation or other reorganization transactions. These restrictive covenants prohibit the Company from paying dividends. These restrictions could limit our ability to obtain future financing, make acquisitions or needed capital expenditures, withstand the current or future downturns in our business or the economy in general, conduct operations or otherwise take advantage of business opportunities that may arise, any of which could place us at a competitive disadvantage relative to our competitors that have less debt and are not subject to such restrictions.

At December 31, 2015, the Company was in compliance with all of its covenants and expects to be in compliance with its covenants in future periods. If the Company fails to meet any covenants in the credit facility, the Company would not be in compliance with its credit agreement and the lenders would be entitled to exercise various rights, including causing the amounts outstanding under the revolving credit facility to become immediately due and payable.

A portion of the Company's debt and capital leases related to buildings and equipment that were underwritten to service underlying Industrial Revenue Bonds (“IRBs”) with the City of Washington, Missouri and Fredonia, Kansas. Monthly payments are scheduled in an amount sufficient to service the total principal and interest of the underlying bonds. Interest ranges from 2.80% to 4.50% and mature between September 2020 and June 2032. In addition, the Company's debt includes a capital lease of $232 related to the building in Coweta, Oklahoma that carries an interest rate of 7.73% and requires monthly payments through March 2022. This capital lease was settled in cash in January of 2016. In 2015, a debt of the Company of $1,167 was assumed by a third-party as the result of a lawsuit settlement. See Note 11, "Commitments and Contingencies," in the Notes to the Condensed Consolidated Financial Statements.

The Company has also entered into various notes payable and capital lease agreements for the purchase of certain equipment. The notes are secured by certain equipment and payable in monthly installments including interest ranging from 2.45% to 3.85% through November 2019.

The gross amount of assets recorded under capital leases totaled $14,870 as of December 31, 2015 and is included in the related property, plant and equipment categories. The long-term debt and capital lease payment obligations including the current portion thereof required in each of the next five years and thereafter are as follows:



Year ending December 31,	Long-Term Debt (1)		Capital Leases
2016	$	895	$	1,915
2017	919		1,962
2018	944		2,223
2019	235,024		2,497
2020	5,044		2,351
Thereafter	—		2,565
Total	242,826		13,513
Less: imputed interest	—		(1,805		)
Total	$	242,826	$	11,708

(1) Includes principal only

Debt issuance costs of $8,348 were incurred as a result of the 2014 refinancing transactions and are being amortized over the term of the notes and revolving credit agreement, which is five years. The Company has appropriately split the deferred financing fees incurred in connection with its debt and will amortize the fees over their respective terms.

In 2014, as a result of the refinancing of its existing long term indebtedness, which resulted in the settlement and termination of its credit agreement, unamortized debt issuance costs associated with the terminated agreement of $8,340 were written off and recognized as interest expense. As the Company continues to repurchase and retire second-priority senior secured notes, the associated unamortized debt issuance costs are also written-off and amortized as interest expense.