Note 5 - Notes Payable

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

( 5 ) NOTES PAYABLE

Our long-term debt consists of the following (In thousands):  

	September 30, 2019			December 31, 2018
Term Loans	$	35,229		$	37,996
Less: current portion		(4,133	)		(3,667	)
Less: unamortized debt issuance costs		(119	)		(153	)
Notes payable, net of current portion	$	30,977		$	34,176

Our credit agreement (the “Credit Agreement”) with First National Bank of Omaha, includes (i) a

$15,000,000

revolving credit facility (the “Line of Credit”), (ii) a

$40,000,000

term loan (the “Term Loan”) and (iii) a

$15,000,000

delayed draw-dawn term facility (the “Delayed Draw Term Loan”). The Term Loan was used to fund, in part, the cash payment to the holders of the class B common stock in connection with the Recapitalization and certain costs of the Recapitalization. The Delayed Draw Term Loan

may

be used to fund any permitted future business acquisitions or repurchases of our Common Stock and the Line of Credit is used to fund ongoing working capital needs and for other general corporate purposes.

The Term Loan is payable in monthly installments of

$462,988

through

April 2020

and

$526,362

thereafter, with a balloon payment due at maturity in

April 2023.

The Term Loan bears interest at a fixed rate per annum of

5%.

Borrowings under the Line of Credit and the Delayed Draw Term Loan, if any, bear interest at a floating rate equal to the

30

-day London Interbank Offered Rate plus

225

basis points (

4.33%

at

September 30, 2019).

Interest on the Line of Credit accrues and is payable monthly. Principal amounts outstanding under the Line of Credit are due and payable in full at maturity, in

April 2021.

As of

September 30, 2019,

there were

no

borrowings outstanding under the Line of Credit and we had the availability to borrow

$15.0

million. There were

no

borrowings outstanding under the Line of Credit at

December 31, 2018.

The weighted average interest rate on borrowings on the Line of Credit for the

three

and

nine

-month periods ended

September 30, 2019

was

4.62%

and

4.72%,

respectively. There have been

no

borrowings on the Delayed Draw Term Loan since origination.

The Credit Agreement is collateralized by substantially all of our assets, subject to permitted liens and other agreed exceptions, and contains customary representations, warranties, affirmative and negative covenants (including financial covenants) and events of default. The negative covenants include, among other things, restrictions regarding the incurrence of indebtedness and liens, repurchases of our Common Stock and acquisitions, subject in each case to certain exceptions. The Credit Agreement also contains certain financial covenants with respect to a minimum fixed charge coverage ratio of

1.10x

and a maximum cash flow leverage ratio of

3.00x.

The special dividend paid on

January 15, 2019,

is excluded from the calculation of the fixed charge coverage ratio pursuant to a consent received from the lender. As of

September 30, 2019,

we were in compliance with these financial covenants.