Revolving Line Of Credit

9 Months Ended

Sep. 30, 2013

Revolving Line Of Credit [Abstract]

Revolving Line Of Credit

(5) Revolving Line of Credit

In August 2010, we entered into a $150.0 million Credit Agreement (the “Credit Facility”) and a related pledge and security agreement with a group of seven financial institutions with Bank of America, N.A., as Administrative Agent.  The Credit Facility provides for a revolving credit line of $150.0 million (which may be increased up to $200.0 million subject to our obtaining commitments for such increase), with a $25.0 million sublimit for letters of credit.  The Credit Facility matures on August 11, 2014.  Borrowings under the Credit Facility may be used for general corporate purposes, including working capital requirements, acquisitions and share repurchases. 

Borrowings under the Credit Facility bear interest at a rate of either (1) the Bank of America’s prime rate plus a margin of 1.50% to 2.75% or (2) the 30, 60, 90 or 180-day LIBOR rate plus a margin of 2.50% to 3.75%, with the margin determined by our consolidated leverage ratio.  The Credit Facility is secured by substantially all of our assets, excluding real property.  The Credit Facility requires us to maintain certain financial ratios and other financial conditions and prohibits us from making certain investments, advances, cash dividends or loans, and limits incurrence of additional indebtedness and liens.  As of September 30, 2013, we were in compliance with those covenants.  

As of September 30, 2013, we had no outstanding borrowings and available borrowing capacity of $145.0 million under the Credit Facility.  We had outstanding letters of credit totaling $5.0 million as of September 30, 2013. Some of our customers, primarily those for our property appraisal services, require that we obtain performance bonds in connection with our contract.  The maximum potential amount of an outstanding performance bond would be the remaining cost of work to be performed under our contracts.  The notional amount of performance guarantees outstanding as of September 30, 2013 was estimated to be $39.6million.  We provide letters of credit as security for the issuance of performance bonds.  These letters of credit are issued under our revolving line of credit and reduce our available borrowing capacity.  We do not believe these letters of credit will be required to be drawn upon.  These letters of credit expire in 2014.