Debt And Credit Agreements

9 Months Ended

Sep. 30, 2012

Debt And Credit Agreements [Abstract]

Debt And Credit Agreements

4. On April 23, 2012, we entered into a $350 million five-year, unsecured revolving credit facility (the "Credit Agreement"), with an option to increase that amount by an additional $75 million. The Credit Agreement replaced our previous $300 million four-year, unsecured revolving credit facility that was due to expire on June 21, 2014. In connection with the refinancing, we borrowed $102 million under the Credit Agreement, which was used, together with available cash on hand, to repay all indebtedness under our previous revolving credit facility.

     Borrowings under the Credit Agreement bear an interest rate of LIBOR plus a credit spread and commitment fees charged on the unused amount under the Credit Agreement at various indebtedness-to-adjusted EBITDA levels as follows:

Pricing Under Revolving Credit Agreement (Basis Points)
Indebtedness-to-Adjusted EBITDA Ratio	Credit Spread Over LIBOR	Commitment Fee
>2.0x but <= 3.0x	200	35
>1.0x but <=2.0x	175	30
<=1.0x	150	25

The most restrictive covenants in the Credit Agreement include:

• Maximum indebtedness-to-adjusted EBITDA of 3.0x;

• Minimum adjusted EBIT-to-interest expense of 2.5x;

• Maximum aggregate distributions to shareholders over the term of the Credit Agreement of $100 million plus, beginning with the fiscal quarter ended March 31, 2012, 50% of net income; and

• Minimum shareholders' equity at any point during the term of the Credit Agreement of at least $320 million increased on a cumulative basis at the end of each fiscal quarter, beginning with the fiscal quarter ended March 31, 2012, by an amount equal to 50% of net income (to the extent positive).