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Debt And Financing
9 Months Ended
Sep. 30, 2015
Debt Disclosure [Abstract]  
Debt And Financing Transactions
Debt and Financing
 
Other than the Company’s accounts receivable securitization, as discussed in Note 5, and its outstanding capital lease obligations as discussed in Note 7, the Company's long-term debt consisted of the following (in thousands):
 
September 30,
2015
 
December 31,
2014
2015 Agreement: New Term Loan A, due July 2020
$
676,375

 
$

2014 Agreement: Old Term Loan A, due June 2019

 
500,000

2014 Agreement: Term Loan B, due June 2021, net of $920 OID

 
396,080

Other
5,870

 
6,980

Long-term debt
682,245

 
903,060

Less: current portion of long-term debt
(29,747
)
 
(31,445
)
Long-term debt, less current portion
$
652,498

 
$
871,615


 
September 30, 2015
 
December 31,
2014
Long-term debt
682,245

 
903,060

Revolving line of credit (1)
200,000

 
$
57,000

Long-term debt, including revolving line of credit
$
882,245

 
$
960,060

____________
(1)
The Company had outstanding letters of credit, primarily related to workers' compensation and self-insurance liabilities of $95.5 million under the New Revolver at September 30, 2015 and $100.3 million under the Old Revolver at December 31, 2014.
Credit Agreement
On July 27, 2015, the Company entered into the 2015 Agreement, which replaced the 2014 Agreement, including the $450.0 million Old Revolver (zero outstanding at closing), $500.0 million Old Term Loan A ($485.0 million outstanding at closing), and a $400.0 million Term Loan B ($395.0 million outstanding at closing). The 2015 Agreement includes a New Revolver and a New Term Loan A. Upon closing, the $680.0 million in proceeds from the New Term Loan A, a $200.0 million draw on the New Revolver and $4.9 million cash on hand were used to pay off the then-outstanding balances of the Old Term Loan A and Term Loan B, including accrued interest and fees under the 2014 Agreement, as well as certain transactional fees associated with the 2015 Agreement.
The following table presents the key terms of the 2015 Agreement (dollars in thousands):
Description
 
New Term Loan A
 
New Revolver (2)
Maximum borrowing capacity
 
$680,000
 
$600,000
Final maturity date
 
July 27, 2020
 
July 27, 2020
Interest rate base
 
LIBOR
 
LIBOR
LIBOR floor
 
—%
 
—%
Interest rate minimum margin (1)
 
1.50%
 
1.50%
Interest rate maximum margin (1)
 
2.25%
 
2.25%
Minimum principal payment — amount (3)
 
$3,625
 
$—
Minimum principal payment — frequency
 
Quarterly
 
Once
Minimum principal payment — commencement date (3)
 
September 30, 2015
 
July 27,
2020
____________
(1)
The interest rate margin for the New Term Loan A and New Revolver is 1.75%, which is lower than the 2014 Agreement's Term Loan B. After December 31, 2015, the interest rate margin for the New Term Loan A and New Revolver will be based on the Company's consolidated leverage ratio. As of September 30, 2015, interest accrued at 1.95% on the New Term Loan A and 1.95% on the New Revolver.
(2)
The commitment fee for the unused portion of the New Revolver is based on the Company's consolidated leverage ratio, and ranges from 0.25% to 0.35%. As of September 30, 2015, commitment fees on the unused portion of the New Revolver accrued at 0.25% and outstanding letter of credit fees accrued at 1.75%.
(3)
Commencing in December 2015, the minimum quarterly payment amount on the New Term Loan A is $6.6 million, then increases to $12.3 million in March 2017, at which it remains until final maturity.
Similar to the 2014 Agreement, the New Revolver and New Term Loan A of the 2015 Agreement contain certain financial covenants with respect to a maximum leverage ratio and a minimum consolidated interest coverage ratio. The 2015 Agreement provides flexibility regarding the use of proceeds from asset sales, payment of dividends, stock buybacks, and equipment financing. In addition to the financial covenants, the 2015 Agreement includes customary events of default, including a change in control default and certain affirmative and negative covenants, including, but not limited to, restrictions, subject to certain exceptions, on incremental indebtedness, asset sales, certain restricted payments (including dividends), certain incremental investments or advances, transactions with affiliates, engaging in additional business activities, and prepayments of certain other indebtedness.
Borrowings under the credit facility are secured by substantially all of the assets of the Company and are guaranteed by Swift Transportation Company, IEL, Swift Refrigerated Transportation, LLC and its subsidiaries, Swift Transportation Co., LLC and its domestic subsidiaries other than its captive insurance subsidiaries, driver academy subsidiary, and its bankruptcy-remote special purpose subsidiary.
Deferred Loan Costs and Loss on Debt Extinguishment
Deferred loan costs, reported in "Other assets" in the Company's consolidated balance sheets, were $3.7 million and $10.4 million as of September 30, 2015 and December 31, 2014, respectively.
The Company incurred $9.6 million in losses on debt extinguishment during the three and nine months ended September 30, 2015, reflecting the write-off of the unamortized OID and deferred financing fees related to the 2014 Agreement, which was replaced by the 2015 Agreement. During the three and nine months ended September 30, 2014, the Company incurred $2.9 million and $12.8 million in losses on debt extinguishment, respectively. During the nine months ended September 30, 2014, $5.2 million of the loss on debt extinguishment related to the replacement of the 2013 Agreement with the 2014 Agreement, and $7.6 million related to the Company's repurchase of its Senior Notes.