(3)BANK DEBT

Our bank debt is comprised of term debt and a $120 million revolver, both of which mature May 21, 2022. Our debt is recorded at cost which approximates fair value due to the variable interest rates in the agreement and is collateralized primarily by Hallador’s assets.

Liquidity

Our bank debt at March 31, 2019, was $168 million (term - $125 million, revolver - $43 million). As of March 31, 2019, we had additional borrowing capacity of $77 million and total liquidity of $88 million.

Fees

Unamortized bank fees and other costs incurred in connection with the initial facility and a subsequent amendment totaled $8.8 million as of our most recent amendment in May 2018. These costs were deferred and are being amortized over the term of the loan. Unamortized costs as of March 31, 2019 and December 31, 2018 were $6.9 million and $7.4 million, respectively.

Bank debt, less debt issuance costs, is presented below (in thousands):



		2019		2018
Current bank debt	$	29,400	$	27,563
Less unamortized debt issuance cost		(2,170)		(2,171)
Net current portion	$	27,230	$	25,392

Long-term bank debt	$	139,050	$	160,900
Less unamortized debt issuance cost		(4,702)		(5,245)
Net long-term portion	$	134,348	$	155,655

Total bank debt	$	168,450	$	188,463
Less total unamortized debt issuance cost		(6,872)		(7,416)
Net bank debt	$	161,578	$	181,047

Covenants

The credit facility includes a Maximum Leverage Ratio (consolidated funded debt / trailing twelve months adjusted EBITDA), calculated as of the end of each fiscal quarter for the trailing twelve months, not to exceed the amounts below:


Fiscal Periods Ending		Ratio
March 31, 2019		3.75 to 1.00
June 30, 2019 and September 30, 2019		3.50 to 1.00
December 31, 2019 through September 30, 2020		3.25 to 1.00
December 31, 2020 through September 30, 2021		3.00 to 1.00
December 31, 2021 and each fiscal quarter thereafter		2.75 to 1.00

As of March 31, 2019, our Leverage Ratio was 2.12, easily within our compliance limit of 3.75.

The credit facility also requires a Minimum Debt Service Coverage Ratio (consolidated adjusted EBITDA / annual debt service) calculated as of the end of each fiscal quarter for the trailing twelve months of 1.25 to 1 through the maturity of the credit facility.

At March 31, 2019, our Debt Service Coverage Ratio was well within compliance at 2.29.

Rate

The interest rate on the facility ranges from LIBOR plus 3.00% to LIBOR plus 4.50%, depending on our Leverage Ratio. We entered into swap agreements to fix the LIBOR component of the interest rate to achieve an effective fixed rate of ~6% on the original term loan balance and on $53 million of the revolver. At March 31, 2019, we are paying LIBOR of 2.51% plus 4.00% for a total interest rate of 6.51%.