Note 16. Long-Term Debt



Long-term debt consisted of the following:

( in thousands)		Interest Rate						Total Principal Due
		September 30,		December 31,		Maturity		September 30,		December 31,
Description		2013		2012		Date		2013		2012
Secured:
Notes Payable – Variable Rate	1	0.0000	%	2.0600	%		$	-	$	12,666
Notes Payable – Variable Rate		2.5326	%	2.5590	%	2017		11,942		13,436
Notes Payable – Variable Rate	2,5	0.0000	%	2.7090	%			-		30,000
Notes Payable – Variable Rate		2.76-2.77	%	2.81-2.85	%	2018		46,000		48,760
Notes Payable – Variable Rate	3	2.7525	%	2.8090	%	2018		16,320		18,896
Notes Payable – Variable Rate	3	2.7647	%	2.8158	%	2018		16,965		17,908
Notes Payable – Variable Rate		2.9181	%	2.9810	%	2018		13,490		15,620
Notes Payable – Variable Rate	4	3.7150	%	1.8314	%	2020		34,565		42,089
Notes Payable – Variable Rate	5	3.7496	%	0.0000	%	2018		45,000		-
Unsecured Line of Credit-Old	6	0.0000	%	3.9500	%			-		38,255
Secured Line of Credit-New	5	3.6800	%			2018		21,000		-
								205,282		237,630
		Less Current Maturities						(19,164)		(26,040)
							$	186,118	$	211,590

1.	We had an interest rate swap agreement in place to fix the interest rate on our variable rate note payable expiring in 2015 at 4.41%. Upon early repayment of approximately $13.3 million to close this credit facility, the interest rate swap was settled and terminated.

We entered into a variable rate financing agreement with Capital One N.A. on November 30, 2012 for a five year facility totaling $30 million to finance a portion of the acquisition of UOS. This facility was fully drawn prior to the end of 2012. Upon execution of the new US Senior Credit Facility, this credit facility was paid off in full. The early pre-payment amount was approximately $25.5 million.

We entered into a variable rate financing agreement with ING Bank N.V., London branch on June 20, 2011 for a seven year facility to finance the acquisition of a Cape Size vessel and a Handymax Bulk Carrier Newbuilding, both of which we acquired a 100% interest in as a result of our acquisition of Dry Bulk. Pursuant to the terms of the facility, the lender agreed to provide a secured term loan facility divided into two tranches: Tranche A, fully drawn on June 20, 2011 in the amount of $24.1 million, and Tranche B, providing up to $23.3 million of additional credit. Under Tranche B, we drew $6.1 million in November 2011 and $12.7 million on January 24, 2012.

We have an interest rate swap agreement in place to fix the interest rate on our variable rate note payable expiring in 2020 at 2.065%. After applicable margin adjustments, the effective interest rate on this note payable is fixed at 3.715%. The swap agreement is for the same term as the associated note payable.

On September 24, 2013, we entered into a senior secured Credit Facility. The Credit Facility matures on September 24, 2018 and includes a term loan facility in the principal amount of $45 million and a LOC in the principal amount of $50 million. The LOC facility includes a $20 million sublimit for the issuance of standby letters of credit and a $5 million sublimit for swingline loans. As of September 24, 2013, the Credit Facility had four lenders, each with commitments ranging from $15 million to $30 million.

Effective November 28, 2012, our revolving credit facility was increased from $30 million to $42 million to provide additional funds for working capital purposes. This revolver was considered fully drawn at December 31, 2012 and the $12 million increase was fully repaid in January 2013. On June 28, 2013 our revolving facility availability was increased from $30 million to $35 million for working capital purposes. The amount drawn at June 30, 2013 was $31.0 million, with $3.7 million used as collateral for various letters of credit. The net weighted average interest rate on all of our long-term debt after consideration of the effect of our interest rate swaps at June 30, 2013 and December 31, 2012 was 3.3275% and 3.2645%, respectively. This unsecured line of credit agreement was paid off with execution of the new secured credit facility on September 24, 2013.

During the second quarter of 2013, we deposited $9.8 million in association with a covenant with the ING Bank N.V., London Branch for a minimum fair market value of these Dry Bulk Vessels to loan balance. We believe from the current appraisals received that approximately $7.3 million of this deposit will be returned due to increased vessel valuations.

Our debt agreements, among other things, impose defined minimum working capital, minimum liquidity, and net worth requirements, impose leverage requirements, and prohibit us from incurring, without prior written consent, additional debt or lease obligations, except as defined. As of September 30, 2013, we met all of the financial covenants under our various debt agreements, the most restrictive of which include the working capital, leverage ratio, minimum net worth and interest coverage ratios.

In addition to the restrictions under our new Credit Facility, certain of our loan agreements restrict the ability of our subsidiaries to dispose of collateralized assets or any other asset which is substantial in relation to our assets taken as a whole without the approval from the lender. We have consistently remained in compliance with this provision of these loan agreements.