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LONG-TERM OBLIGATIONS
9 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract]  
LONG-TERM OBLIGATIONS
5. LONG-TERM OBLIGATIONS
        
Long-term debt consisted of the following for the periods indicated (amounts in millions):
        
    September 30, 2014  December 31, 2013
$60.0 million Term Loan; $3.0 million principal payments plus accrued interest payable quarterly; interest rate at ABR Rate plus applicable percentage or Eurodollar Rate plus the applicable percentage (3.41% at September 30, 2014); due October 26, 2017 $36.0 $45.0
$120.0 million Revolving Credit Facility; interest only quarterly payments; interest rate at ABR Rate plus applicable percentage or Eurodollar Rate plus the applicable percentage (3.41% at September 30, 2014); due October 26, 2017  10.0  0.0
$70.0 million Second Lien Loan; interest only quarterly payments; interest rate at ABR Rate plus applicable percentage or Eurodollar Rate plus the applicable percentage (8.50% at September 30, 2014); due July 28, 2020  70.0  0.0
Discount on Second Lien Loan  (1.7)  0.0
Promissory notes  0.0  1.9
    114.3  46.9
Current portion of long-term obligations  (12.0)  (13.9)
 Total $102.3 $33.0
        

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.