8. Financing Arrangements

Financing arrangements consisted of the following:

	September 30,		September 30,
	2014		2013
Senior Secured Credit Facility
Revolving Lines of Credit:
Canadian revolver-expires March 31, 2017 (effective rate on borrowings 4.00% at September 30, 2014 and 3.75% at September 30, 2013)	$	10,714	$	2,426
U.S. Revolver-expires March 31, 2017 (effective rate on borrowings of 4.25% at September 30, 2014 and 1.93% at September 30, 2013)		7,800		45,000
Term Loan:
Term Loan-matures March 31, 2017 (2.15% at September 30, 2014 and 1.93% on September 30, 2013)		196,875		208,125
Total borrowings under Senior Secured Credit Facility		215,389		255,551
Less: current portion		(29,764)		(58,676)
Total long-term portion of borrowings under Senior Secured Credit Facility	$	185,625	$	196,875

Equipment Financing Facilities
Borrowings under various equipment financing facilities-various maturities through September 2021 (various fixed interest rates ranging from 2.33% to 4.60% at September 30, 2014, and 2.51% to 6.75% at September 30, 2013)	$	30,966	$	10,597
Less: current portion		(5,352)		(3,848)
Total long-term portion of borrowings under equipment financing facilities	$	25,614	$	6,749

Senior Secured Credit Facility

On April 5, 2012, the Company replaced its prior credit facility with a new five-year senior secured credit facility that includes a $550 million United States credit facility (individually, the “U.S. Credit Facility”) and a C$15 million ($13.4 million at September 30, 2014) Canadian credit facility (individually, the “Canadian Revolver”) with Wells Fargo Bank, National Association, and a syndicate of other lenders (combined, the “Credit Facility”). The Company paid off debt of $304.0 million that was outstanding under the prior credit facility with the proceeds from the Credit Facility and from approximately $79 million of cash on hand. In the third quarter of 2012, the Company recorded a charge of approximately $1.2 million ($0.7 million, net of tax), included in interest expense, financing costs and other associated with this transaction. In addition, this transaction impacted the effectiveness of the Company’s interest rate swaps existing as of the refinancing date as discussed in Note 16.

The $550 million U.S Credit Facility consists of a revolving credit facility of $325 million (the “U.S. Revolver”), which includes a sub-facility of $20 million for letters of credit, and a $225 million term loan (the “Term Loan”). The Term Loan has required amortization of 5% per year that is payable in quarterly installments, with the balance due on March 31, 2017. The Company may increase the Credit Facility by up to $200 million under certain conditions. There was $7.8 million, C$12.0 million ($10.7 million) and $196.9 million outstanding under the U.S. Revolver, Canadian Revolver and Term Loan, respectively, at September 30, 2014. There were $8.1 million of outstanding standby letters of credit at September 30, 2014.

Interest

The Credit Facility provides for borrowings under the Company’s U.S. Revolver and Canadian Revolver at a Base Rate. The Base Rate for borrowings under the U.S. Revolver is defined as the higher of the Prime Rate, or the Federal Funds Rate plus 0.50%, plus a margin above that rate. For borrowings made under the Canadian Revolver, the Base Rate is defined as the higher of the Canadian Prime Rate, or the annual rate of interest equal to the sum of the CDOR rate plus 1.00%, plus a margin above that rate. The margin for both base rates is currently 1.00% per annum and can range from 0.50% to 1.50% per annum depending upon the Company’s Consolidated Total Leverage Ratio, as defined in the Credit Facility.

Additionally, for Base Rate borrowings made under the U.S. Revolver, the Company may elect an optional interest rate equal to the one (1), two (2), three (3), or six (6) month LIBOR rate, plus a margin above that rate. In connection with this election, the Company is also required to elect an interest period that corresponds with the underlying LIBOR rate that was elected. The margin is currently 2.00% per annum and can range from 1.50% to 2.50% per annum depending upon the Company’s Consolidated Total Leverage Ratio, as defined in the Credit Facility.

Current unused commitment fees on the revolving credit facilities are 0.45% per annum. The unused commitment fees can range from 0.35% to 0.50% per annum, again depending upon the Company’s Consolidated Total Leverage Ratio.

As of September 30, 2014, outstanding borrowings under the U.S. Revolver carried an interest rate equal to the United States Prime rate, plus 1.00% (4.25% at September 30, 2014), while outstanding borrowings under the Canadian Revolver carried an interest rate equal to the Canadian Prime rate, plus 1.00% (4.00% at September 30, 2014). Borrowings under the Term Loan carried an interest rate equal to the LIBOR rate, plus 2.00% (2.15% at September 30, 2014).

Financial covenants under the Credit Facility are as follows:

Maximum Consolidated Total Leverage Ratio

On the last day of each fiscal quarter, the Company’s Consolidated Total Leverage Ratio (the ratio of outstanding debt to trailing twelve-month earnings before interest, income taxes, depreciation, amortization and stock-based compensation), as more fully defined in the Credit Facility, must not be greater than 3.50:1.0, or 4.00:1.0 under a one-time request by the Company subsequent to an acquisition that meets the requirements under the Credit Facility. At September 30, 2014, this ratio was 1.88:1.

Minimum Consolidated Interest Coverage Ratio

On the last day of each fiscal quarter, the Company’s Consolidated Interest Coverage Ratio (the ratio of trailing twelve-month earnings before interest, income taxes, depreciation, amortization and stock-based compensation to cash interest expense for the same period), as more fully defined in the Credit Facility, must not be less than 3.00:1.0. At September 30, 2014, this ratio was 14.79:1.

As of September 30, 2014, the Company was in compliance with these covenants.

Substantially all of the Company’s assets, including the capital stock and assets of wholly-owned subsidiaries, secure obligations under the Credit Facility.

Equipment Financing Facilities

As of September 30, 2014, there was a total of $31.0 million outstanding under equipment financing facilities, with fixed interest rates ranging from 2.33% to 4.60% and payments due through September 2021. The Company’s current facility provides for up to $30 million of purchased equipment through October 1, 2014. The applicable interest rate at the time of the advances will be approximately 1.26% above the 3-year term swap rate for 5-year loans and 1.21% above the 4-year term swap rate for 7-year loans. No further amounts can be drawn on prior facilities.

Other Information

Annual principal payments for all outstanding borrowings for each of the next five years and thereafter as of September 30, 2014 were as follows:

	Senior
	Secured				Revolving
	Credit		Equipment		Lines of
Fiscal year	Facility		Financing		Credit		Total
2015	$	11,250	$	5,352	$	18,514	$	35,116
2016		11,250		5,084		-		16,334
2017		174,375		4,989		-		179,364
2018		-		4,239		-		4,239
2019		-		4,352		-		4,352
Thereafter		-		6,950		-		6,950
Subtotal		196,875		30,966		18,514		246,355
Less current portion		11,250		5,352		18,514		35,116
Total long-term debt	$	185,625	$	25,614	$	-	$	211,239