Note 8 - Notes Payable

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

( 8 ) Notes Payable

Our long-term debt consists of the following:  

	2019			2018
	(In thousands)
Term Loans	$	34,281		$	37,996
Less: current portion		(4,378	)		(3,667	)
Less: unamortized debt issuance costs		(108	)		(153	)
Notes payable, net of current portion	$	29,795		$	34,176

On

April 18, 2018,

in connection with the Recapitalization, we entered into a credit agreement (the “Credit Agreement”) with FNB providing for (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” and, together with the Line of Credit and the Term Loan, the “Credit Facilities”). We used the Term Loan to fund, in part, the cash portion paid to holders of our then-existing class B common stock in connection with the Recapitalization and the accompanying exchange of outstanding share-based awards tied to the class B common stock, as well as for the 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 will be 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 (

3.94%

at

December 31, 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

December 31, 2019

and

2018,

the Line of Credit did

not

have a balance. The weighted average borrowings on the Line of Credit for year ended

December 31, 2019

was

$2.4

million. The weighted average interest on borrowings on the Line of Credit for the year ended

December 31, 2019

was

4.72%.

There have been

no

borrowings on the Delayed Draw Term Loan since origination.

We paid a

one

-time fee equal to

0.25%

of the amount borrowed under the Term Loan at the closing of the Credit Facilities. We are also obligated to pay ongoing unused commitment fees quarterly in arrears pursuant to the Line of Credit and the Delayed Draw Term Loan facility at a rate of

0.20%

per annum based on the actual daily unused portions of the Line of Credit and the Delayed Draw Term Loan facility, respectively.

The Credit Agreement is collateralized by substantially all of our assets 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.

As of

December 31, 2019,

we were in compliance with our financial covenants. 

Scheduled maturities of notes payable at

December 31, 2019

are as follows:

2020	$	4,418
2021		4,916
2022		5,171
2023		19,776