LONG-TERM OBLIGATIONS
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2014
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM OBLIGATIONS |
Our weighted average interest rate for our five year $60.0 million Term Loan under our existing senior secured Credit Agreement was 3.4% for the three and nine-month periods ended September 30, 2014, as compared to 2.7% for the three and nine-month periods ended September 30, 2013.
On July 28, 2014, we entered into a Second Lien Credit Agreement providing for a term loan in an aggregate principal amount of $70.0 million. The proceeds of $67.4 million were used to pay off a portion of the revolving credit balances under our existing senior secured Credit Agreement dated as of October 26, 2012. Our weighted average interest rate for our Second Lien Loan was 8.5% for the three-month period ended September 30, 2014.
In connection with the Second Lien Credit Agreement, on July 28, 2014, we entered into the fourth amendment to our existing senior secured Credit Agreement, which amends certain covenants, representations and other provisions in our Credit Agreement, to among other things, allow for our entry into the Second Lien Credit Agreement. The fourth amendment also decreases the aggregate principal amount of the revolving credit facility under our existing senior secured Credit Agreement from up to $165.0 million to up to $120.0 million.
Our existing senior secured Credit Agreement, as amended on July 28, 2014, limits total leverage, senior secured leverage and requires minimum coverage of fixed charges. As of September 30, 2014, our total leverage ratio was 2.1, our senior secured leverage was 1.2 and our fixed charge coverage ratio was 1.8 and we are in compliance with the existing senior secured Credit Agreement. We currently anticipate we will be in compliance with the covenants associated with our long-term obligations over the next 12 months. In the event we are not in compliance with our debt covenants in the future, we would pursue various alternatives in an attempt to successfully resolve the non-compliance, which might include, among other things, seeking debt covenant waivers or amendments.
As of the date of this filing, our availability under our $120.0 million Revolving Credit Facility, as amended by the fourth amendment to our existing senior secured Credit Agreement, was $55.7 million and we had $19.3 million outstanding in letters of credit. |