Note 4 - Notes Payable

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

  ( 4 ) NOTES PAYABLE

Our long-term debt consists of the following:  

	March 31, 2020			December 31, 2019
	(In thousands)
Term Loans	$	33,321		$	34,281
Less: current portion		(4,631	)		(4,378	)
Less: unamortized debt issuance costs		(97	)		(108	)
Notes payable, net of current portion	$	28,593		$	29,795

Our credit agreement (the “Credit Agreement”) with First National Bank of Omaha (“FNB”) 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” and, together with the Line of Credit and the Term Loan, the “Credit Facilities”). 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 can 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 (

3.61%

at

March 31, 2020).

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

March 31, 2020,

and

December 31, 2019,

the Line of Credit did

not

have a balance. There were

no

borrowings on the Line of Credit for

three

months ended

March 31, 2020.

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, 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.

As of

March 31, 2020,

we were in compliance with our financial covenants.