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Debt
3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Debt

Note 6. DEBT

Our balances for long-term debt and finance lease obligations were as follows (in thousands):

 

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Revolving credit facility

 

$

526,141

 

 

$

513,180

 

Finance lease obligations

 

 

19,374

 

 

 

20,007

 

Total debt and finance lease obligations

 

 

545,515

 

 

 

533,187

 

Current portion

 

 

2,677

 

 

 

2,631

 

Noncurrent portion

 

 

542,838

 

 

 

530,556

 

Deferred financing costs, net

 

 

2,997

 

 

 

3,257

 

Noncurrent portion, net of deferred financing costs

 

$

539,841

 

 

$

527,299

 

 

Our revolving credit facility is secured by substantially all of our assets. Letters of credit outstanding at March 31, 2021 and December 31, 2020 totaled $4.0 million. The amount of availability under the credit facility at March 31, 2021, after taking into consideration debt covenant restrictions, was $115.4 million.

Financial Covenants and Interest Rate

 

The credit facility contains certain financial covenants. We are required to maintain a consolidated leverage ratio for the most recently completed four fiscal quarters of 4.75 to 1.00. Such threshold is increased to 5.50 to 1.00 for the quarter during a specified acquisition period (as defined in the credit facility). Upon the occurrence of a qualified note offering (as defined in the credit facility), the consolidated leverage ratio when not in a specified acquisition period is increased to 5.25 to 1.00, while the specified acquisition period threshold remains 5.50 to 1.00. Upon the occurrence of a qualified note offering, we are also required to maintain a consolidated senior secured leverage ratio (as defined in the credit facility) for the most recently completed four fiscal quarter period of not greater than 3.75 to 1.00. Such threshold is increased to 4.00 to 1.00 for the quarter during a specified acquisition period. We are also required to maintain a consolidated interest coverage ratio (as defined in the credit facility) of at least 2.50 to 1.00. As of March 31, 2021, we were in compliance with these financial covenants.

 

Our borrowings under the revolving credit facility had a weighted-average interest rate of 2.1% as of March 31, 2021 (LIBOR plus an applicable margin, which was 2.0% as of March 31, 2021).

See Note 7 for information related to our interest rate swap contracts.