Short-Term and Long-Term Debt

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Short-Term and Long-Term Debt [Text Block]

Short-Term and Long-Term Debt

Short-term debt consisted of the following:

	December 31,
	2013		2012
Current portion of long-term debt	$	8,434	$	6,992

At December 31, 2013, we also had unused short-term lines of credit with several banks totaling $11,217, generally at the banks' prime rate or LIBOR plus a margin adjustment of .75% to 1.50%. Long-term debt consisted of the following:

	December 31,
	2013		2012
Revolving credit facility
Swing-line borrowings	$	—	$	—
Prime rate borrowings	—		9,200
LIBOR borrowings	20,000		15,000
	20,000		24,200
Senior unsecured notes	30,000		30,000
Term loans	8,468		7,579
	58,468		61,779
Less current portion	8,434		6,992
	$	50,034	$	54,787

Revolving Credit Facility and 5.09% Senior Unsecured Notes--In November 2013, the Company amended its revolving credit facility. The amended and restated credit agreement, which expires in November 2018, permits borrowings as defined up to $175,000 including a letter of credit sublimit of $100,000 and a swing-line commitment of $15,000 (the previous

I.    Short-Term and Long-Term Debt (continued)

agreement permitted borrowings up to $140,000 with a letter of credit sublimit of $100,000). Under certain circumstances, the amount available under the revolving credit facility may be increased to $210,000. The revolving credit facility contains certain affirmative and negative covenants customary for this type of facility and includes financial covenant ratios with respect to a maximum leverage ratio and a maximum balance sheet leverage ratio.

On July 22, 2010, we issued $30,000 of 5.09% Senior Unsecured Notes, Series A, due July 22, 2020 (the "5.09% Senior Notes"). The 5.09% Senior Notes were issued pursuant to a Master Note Purchase Agreement (the “Purchase Agreement”), between the Company and the purchasers of the 5.09% Senior Notes. The net proceeds of the 5.09% Senior Notes were used to pay down borrowings under our revolving credit facility.

The 5.09% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commence on July 22, 2016 (thesixth anniversary of issuance).  The Purchase Agreement contains customary events of default and covenants related to limitations on indebtedness and transactions with affiliates and the maintenance of certain financial ratios.

As of December 31, 2013, we had unused commitments under the facility approximating$101,096, and$73,904committed, which consisted of borrowings of$20,000 and issued letters of credit of$53,904. Borrowings outstanding bear interest, at Davey Tree’s option, of either (a) the base rate or (b) LIBOR plus a margin adjustment ranging from .75% to 1.50%--with the margin adjustments in both instances based on the Company's leverage ratio at the time of borrowing. The base rate is the greater of (i) the agent bank’s prime rate, (ii) LIBOR plus 1.5%, or (iii) the federal funds rate plus .5%. A commitment fee ranging from .10% to .25% is also required based on the average daily unborrowed commitment.

Term Loans, Weighted-Average Interest Rate--The weighted-average interest on the term loans approximated 2.04% at December 31, 2013 and 1.99% at December 31, 2012.

Aggregate Maturities of Long-Term Debt--Aggregate maturities of long-term debt for the five years subsequent to December 31, 2013 were as follows: 2014--$8,434; 2015-- $34; 2016-- $6,000; 2017-- $6,000; and, 2018-- $26,000.