Debt

9 Months Ended

Dec. 31, 2020

7. Debt

The Company is party to a $268,620,000 senior secured financing, (as amended from time to time, the “Credit Facility”) with a syndicate of lenders, and PNC Bank, National Association, as administrative agent, consisting of (i) a $238,620,000 revolving loan facility, subject to borrowing base restrictions, a $24,000,000 sublimit for borrowings by Canadian borrowers, and a $20,000,000 sublimit for letters of credit (the “Revolving Facility”) and (ii) a $30,000,000 term loan facility (the “Term Loans”). The loans under the Credit Facility mature on June 5, 2023. The Credit Facility currently permits the payment of up to $30,000,000 of dividends and share repurchases for this fiscal year, subject to pro forma compliance with financial covenants. In connection with the Credit Facility, the lenders have a security interest in substantially all of the assets of the Company.

The Term Loans require quarterly principal payments of $937,500. The Credit Facility bears interest at rates equal to either LIBOR plus a margin of 2.25%, 2.50% or 2.75% or a reference rate plus a margin of 1.25%, 1.50% or 1.75%, in each case depending on the senior leverage ratio as of the applicable measurement date. There is also a facility fee of 0.375% to 0.50%, depending on the senior leverage ratio as of the applicable measurement date. The interest rate on the Company’s Term Loans and Revolving Facility was 2.91% and 2.90%, respectively, at December 31, 2020, and 4.34% and 3.64%, respectively, at March 31, 2020.

The Credit Facility, among other things, requires the Company to maintain certain financial covenants including a maximum senior leverage ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all financial covenants at December 31, 2020.

The Company had cash of $12,800,000 at December 31, 2020 and paid down its outstanding debt by $95,813,000 during the nine months ended December 31, 2020. However, the Credit Facility allows up to $6,000,000 of credit for cash when computing the senior leverage ratio. In addition to other covenants, the Credit Facility places limits on the Company’s ability to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales, redeem or repurchase capital stock, alter the business conducted by the Company and its subsidiaries, transact with affiliates, prepay, redeem or purchase subordinated debt, and amend or otherwise alter debt agreements.

The following summarizes information about the Term Loans:

	December 31, 2020			March 31, 2020
Principal amount of Term Loans	$	21,562,000		$	24,375,000
Unamortized financing fees		(179,000	)		(235,000	)
Net carrying amount of Term Loans		21,383,000			24,140,000
Less current portion of Term Loans		(3,678,000	)		(3,678,000	)
Long-term portion of Term Loans	$	17,705,000		$	20,462,000

Future repayments of the Term Loans are as follows:

Year Ending March 31,
2021 - remaining three months	$	937,000
2022		3,750,000
2023		3,750,000
2024		13,125,000
Total payments	$	21,562,000

The Company had $59,000,000 and $152,000,000 outstanding under the Revolving Facility at December 31, 2020 and March 31, 2020, respectively. In addition, $5,937,000 was outstanding for letters of credit at December 31, 2020. At December 31, 2020, after certain contractual adjustments, $127,236,000 was available under the Revolving Facility.