Subsequent Event

9 Months Ended

Sep. 30, 2018

Note 23. Subsequent Event

Effective October 24, 2018, we entered into the 2018 Credit Agreement, which provides for the $450 million 2018 Credit Facility. The following terms are included in the 2018 Credit Facility:

•

May be increased up to an additional $250 million under certain circumstances;

•

Maintain an interest coverage ratio of not less than 3.00 to 1.00;

•

Maintain a leverage ratio of not greater than 3.50 to 1.00, with a step-up of 4.00 to 1.00 for four quarters for a material acquisition of $50 million or more;

•

Dividends are permitted up to $15 million in any calendar year. In addition, we can declare and pay dividends or repurchase our common stock up to $20 million per calendar year. Dividends and repurchases above those thresholds are permitted as long as our pro forma leverage ratio is less than or equal to 2.75 to 1.00; and

•

Unlimited unsecured debt provided we are in compliance with the leverage ratio. The unsecured debt must mature outside the credit facility, cannot have scheduled principal payments while the 2018 Credit Facility is in place, and debt covenants cannot be more restrictive than the 2018 Credit Facility.

Refer to Note 12 – Debt and Capital Lease Obligations for additional information.