Debt and Credit Facilities

12 Months Ended

Dec. 31, 2021

Line of Credit Facility [Abstract]

Debt and Credit Facilities

DEBT AND CREDIT FACILITIES

On June 30, 2021, we amended our existing credit agreement, dated May 14, 2019, with BMO Harris Bank N.A. The amendment added an unsecured fixed-rate term loan commitment not to exceed a principal amount of $100.0 million and increased our borrowing capacity with BMO Harris Bank N.A. from $200.0 million to $300.0 million. The outstanding principal balance of the term loan bears interest at a fixed rate of 1.28%.

As of December 31, 2021, we had a $300.0 million and a $200.0 million unsecured committed credit facility with Wells Fargo Bank, N.A. and BMO Harris Bank N.A. (together, the “Credit Facilities”), respectively, which will expire on May 14, 2024. Borrowings under the Credit Facilities bear variable interest based on the London Interbank Offered Rate (“LIBOR”). In addition, we had a $100.0 million unsecured fixed-rate term loan commitment with BMO Harris Bank N.A., as described above, with quarterly principal payments of $1.25 million, which began on September 30, 2021, and a final payment of principal and interest due and payable on May 14, 2024.

As of December 31, 2021 and 2020, our outstanding debt totaled $427.5 million and $200.0 million, respectively. As of December 31, 2021, we had $330.0 million outstanding under the Credit Facilities, including (i) $180.0 million at a weighted average variable interest rate of 0.78%; (ii) $75.0 million at a variable interest rate of 0.78%, which is effectively fixed at 2.32% with an interest rate swap agreement through May 14, 2024; and (iii) $75.0 million at a variable interest rate of 0.80%, which is effectively fixed at 2.36% with an interest rate swap agreement through May 14, 2024. In addition, as of December 31, 2021, we had $97.5 million outstanding under the term loan at a fixed interest rate of 1.28%. The $500.0 million of borrowing capacity under our Credit Facilities at December 31, 2021, is further reduced by $54.9 million in stand-by letters of credit under which we are obligated. Each of the debt agreements includes, among other things, financial covenants requiring us (i) to exceed a minimum ratio of earnings before interest, income taxes, depreciation and amortization to interest expense and/or (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). As of December 31, 2021, we were in compliance with these covenants.

At December 31, 2021, the aggregate future maturities of long-term debt by year are as follows (in thousands):

2022	$	5,000
2023	5,000
2024	417,500
2025	—
2026	—
Total	$	427,500