Credit Facilities

3 Months Ended

Mar. 31, 2015

As of March 31, 2015, we have unsecured committed credit facilities with two banks as well as a term commitment with one of these banks. We have with Wells Fargo Bank, N.A., a $175.0 million credit facility which will expire on May 31, 2016 and a $75.0 million term commitment with principal due and payable on September 15, 2019. On March 5, 2015, we replaced our existing $75.0 million credit agreement with BMO Harris Bank, N.A. with a new credit agreement. The new BMO Harris Bank agreement includes a $75.0 million credit facility which will expire on March 5, 2020. Borrowings under these credit facilities and term note bear variable interest (0.7745% at March 31, 2015) based on the London Interbank Offered Rate (“LIBOR”), with interest on the term note effectively fixed at 2.5% with an interest rate swap agreement.

As of March 31, 2015, and December 31, 2014, our outstanding debt totaled $75.0 million. The $325.0 million of credit pursuant to these facilities is further reduced by $32.7 million in stand-by letters of credit under which we are obligated. Each of the debt agreements includes, among other things, two financial covenants requiring us (i) not to exceed a maximum ratio of total debt to total capitalization and (ii) not to exceed a maximum ratio of total funded debt to earnings before interest, income taxes, depreciation and amortization (as such terms are defined in each credit facility). At March 31, 2015, we were in compliance with these covenants.

At March 31, 2015, the aggregate future maturities of long-term debt by year are as follows (in thousands):



2015	$	—
2016	—
2017	—
2018	—
2019	75,000
Total	$	75,000

The carrying amounts of our long-term debt approximate fair value due to the duration of the notes and the variable interest rates.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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