XML 22 R11.htm IDEA: XBRL DOCUMENT v3.19.1
Debt and Financing Arrangements
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Debt and Financing Arrangements

(5) Debt and Financing Arrangements

At March 31, 2019 and December 31, 2018, debt consisted of the following (in thousands):

 

 

 

March 31, 2019

 

 

December 31, 2018

 

Credit Agreement with Banks, described below

 

$

50,608

 

 

$

20,000

 

Finance Leases, described below

 

 

98,270

 

 

 

102,859

 

Total debt

 

 

148,878

 

 

 

122,859

 

Less: current portion of long-term debt

 

 

17,914

 

 

 

18,082

 

Long-term debt, less current portion

 

$

130,964

 

 

$

104,777

 

 

The Company’s liquidity needs arise primarily from capital investment in new equipment, land and structures, information technology and letters of credit required under insurance programs, as well as funding working capital requirements.

The Company is party to a revolving credit agreement with a group of banks to fund capital investments, letters of credit and working capital needs.

Credit Agreement

The Fifth Amended and Restated Credit Agreement dated March 6, 2015 (the Restated Credit Agreement) was a revolving credit facility for up to $250 million expiring in March 2020. The Restated Credit Agreement also had an accordion feature that allowed for an additional $75 million availability, subject to lender approval.  The Restated Credit Agreement provided for a LIBOR rate margin range from 112.5 basis points to 225 basis points, base rate margins from minus 12.5 basis points to plus 50 basis points, an unused portion fee from 20 basis points to 30 basis points and letter of credit fees from 112.5 basis points to 225 basis points, in each case based on the Company’s leverage ratio.  Under the Restated Credit Agreement, the Company had to maintain certain financial covenants including a minimum fixed charge coverage ratio and a maximum leverage ratio, among others.  The Restated Credit Agreement also provided for a pledge by the Company of certain land and structures, certain tractors, trailers and other personal property and accounts receivable, to secure indebtedness under the Restated Credit Agreement.

On February 5, 2019, the Company entered into the Sixth Amended and Restated Credit Agreement with its banking group (as amended, the Amended Credit Agreement).  The amendment increased the amount of the revolver from $250 million to $300 million and extended the term until February 2024.  The Amended Credit Agreement also has an accordion feature that allows for an additional $100 million availability, subject to bank approval.  The amendment reduced the interest rate pricing grid.  The Amended Credit Agreement provides for a LIBOR rate margin range from 100 basis points to 200 basis points, base rate margins from minus 50 basis points to plus 50 basis points, an unused portion fee from 17.5 basis points to 30 basis points and letter of credit fees from 100 basis points to 200 basis points in each case based on the Company’s leverage ratio.  Under the Amended Credit Agreement, the Company must maintain a minimum debt service coverage ratio set at 1.25 to 1.00 and a maximum leverage ratio set at 3.25 to 1.00.  The Amended Credit Agreement provides for a pledge by the Company of certain land and structures, accounts receivable and other assets to secure indebtedness under this agreement.  The Amended Credit Agreement contains certain customary representations and warranties, affirmative and negative covenants and provisions relating to events of default. Under the Amended Credit Agreement, if an event of default occurs, the banks will be entitled to take various actions, including the acceleration of amounts due.

At March 31, 2019, the Company had borrowings of $50.6 million and outstanding letters of credit of $26.1 million under the Amended Credit Agreement.  At December 31, 2018, the Company had borrowings of $20.0 million and outstanding letters of credit of $27.7 million under the Restated Credit Agreement.  The available portion of the Amended Credit Agreement may be used for general corporate purposes, including capital expenditures, working capital and letter of credit requirements as needed.

Finance Leases

The Company is obligated under finance leases with seven-year terms covering revenue equipment totaling $98.3 million and $102.9 million as of March 31, 2019 and December 31, 2018, respectively.  Amortization of assets held under the finance leases is included in depreciation and amortization expense.  The weighted average interest rates for the finance leases at March 31, 2019 and December 31, 2018 were 3.4 percent and 3.4 percent, respectively.

Principal Maturities of Long-Term Debt

The principal maturities of long-term debt, including interest on finance leases, for the next five years (in thousands) are as follows:

 

 

 

Amount

 

2019

 

$

15,984

 

2020

 

 

21,311

 

2021

 

 

21,837

 

2022

 

 

20,101

 

2023

 

 

14,522

 

Thereafter

 

 

64,681

 

Total

 

 

158,436

 

Less: Amounts Representing Interest on Finance Leases

 

 

9,558

 

Total

 

$

148,878