Long-term Debt and Capital Lease Obligations

6 Months Ended

Jun. 30, 2013

Long-term Debt and Capital Lease Obligations [Abstract]

Long-term Debt and Capital Lease Obligations

6.  Long-term Debt and Capital Lease Obligations

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

	June 30,		December 31,
	2013		2012
Term loan under credit agreement, variable	$	223,875	$	225,000	2000-1
Revolver under credit agreement, variable		34,236		6,236	2000-1
Missouri IRBs at fixed rate of 2.80% at
June 30, 2013 and December 31, 2012		7,963		8,113	2000-1
Capital leases, at fixed rates ranging from 2.04%
to 7.73% at June 30, 2013 and 3.00% to 7.73%
at December 31, 2012		15,181		15,316	2000-1
Notes payable, principal and interest payable monthly, at fixed rates,
up to 3.60% at June 30, 2013 and up to 3.25% at December 31, 2012		11,615		6,034	2000-1
Total debt		292,870		260,699
Less current installments		6,561		5,632	2000-1
Total long-term debt and capital lease obligations	$	286,309	$	255,067

On December 28, 2012, the Company entered into a credit agreement to provide new senior secured credit facilities to finance the Valent acquisition, refinance existing debt, and fund working capital requirements.  This agreement was amended on February 5, 2013 in conjunction with its completed syndication increasing the Company's borrowing limit and reducing its rates.  The amended credit agreement provides for credit facilities that include a revolving credit facility of up to $125,000 and a term loan facility of $225,000.  Borrowings under the term and revolving credit facilities are secured by substantially all of the Company's assets and bear interest at either the LIBOR rate plus a margin of up to 3.50% and 4.00%, respectively,  with a LIBOR floor of 1.25% or the alternate base rate ("ABR") which is the highest of the following plus a margin of up to 2.50% and 3.00%, respectively, with the applicable margins of the facilities subject to a step down and a step-down grid, respectively, based on the total leverage ratio of the company effective with the start of the second quarter of 2013:

· Prime rate,

· Federal funds rate plus 0.5%,

· The adjusted Eurodollar rate for an interest period of one month plus 1% or,

· The 2.25% ABR rate floor.

The Company is required to pay a commitment fee of between 0.375% and 0.625% per annum on the unused portion of the revolving credit facility, depending on the leverage ratio.  The credit agreement has certain financial covenants, specifically a maximum total leverage ratio and a minimum interest coverage ratio.  The Company is currently in compliance with all of its financial and non-financial covenants as of June 30, 2013.  The Company's growth rate over the past six months has been slower than originally expected. If it continues, this slow growth rate will increase the Company's risk of non-compliance with the required leverage ratio in the credit agreement, which ratio is scheduled to decline at December 31, 2013 as set forth in the credit agreement.  The Company is currently in discussions with its lenders to modify the existing covenants and is looking for ways to generate additional EBITDA and reduce debt levels.  The Company is currently optimistic about its ability to modify the covenants, but cannot provide assurance that it will be successful in negotiations. If covenants are not met and modifications or waivers cannot be obtained, it will result in non-compliance with the credit agreement, the occurrence of which could result in the amounts outstanding under the term loan facility and revolving credit facility becoming immediately due and payable.

On March 28, 2013, the Company entered into a $3,550 promissory note at a 3.60% fixed interest rate to finance the purchase of a corporate aircraft.  Also in the first quarter, the Company signed a $2,200 promissory note at a 2.95% fixed interest rate to finance a building in Tulsa, Oklahoma and a capital lease agreement for the purchase of office furnishings for $411 at a 3.85% interest rate.