Note 17 - Revolving Credit Agreement

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

17.

Revolving Credit Agreement

On

October 24, 2017,

the Company, as borrower, entered into a new

five

-year agreement with Bank of America, N.A., as administrative agent, swingline lender and issuer of letters of credit, for a

$50.0

million senior revolving line of credit (the “Credit Agreement”). Subject to certain conditions, the Company

may

request up to an additional

$50.0

million in commitments for a maximum aggregate commitment of

$100.0

million, which requests must be approved by the Revolving Lenders (as defined in the Credit Agreement). Loans under the Credit Agreement generally bear interest equal to, at the Company’s option, either: (i) LIBOR plus the Applicable Margin, as defined below, or the (ii) Base Rate, defined as the highest of: (a) the Federal Funds Rate plus

0.50%,

(b) Bank of America, N.A.’s prime rate and (c) the

one

month LIBOR adjusted daily plus

1.0%,

plus the Applicable Margin. The Applicable Margin ranges from

0.25%

to

1.75%

based on the Company’s consolidated leverage ratios at the time of the borrowings under the Credit Agreement. The Company has agreed to pay a commitment fee in an amount that is equal to

0.25%

per annum on the actual daily unused amount of the credit facility and that is due and payable quarterly in arrears. Loan origination costs are included in Other long-term assets and are being amortized over the

five

-year term of the Credit Agreement. As of

December 31, 2017,

there are

no

outstanding borrowings under the Credit Agreement and the Company is in compliance with the terms of the Credit Agreement.

The Credit Agreement contains customary representations, warranties, affirmative and negative covenants, including financial covenants, events of default and indemnification provisions in favor of the Lenders (as defined in the Credit Agreement). The covenants include restrictions governing the Company’s leverage ratio and interest coverage ratio, its incurrence of liens and indebtedness, and its entry into certain merger and acquisition transactions or dispositions and other matters, all subject to certain exceptions. The financial covenants require the Company

not

to exceed certain maximum leverage and interest coverage ratios. The Lenders have been granted a

first

priority lien and security interest in substantially all of the Company’s assets, except for certain intangible assets.