Note 3 - Long-term Debt

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Long-term Debt [Text Block]

NOTE

3

– Long-Term Debt:

Debt consisted of the following (in thousands):

	March 31,		December 31,
	2020		2019
Credit Facilities:
Revolving credit facility due May 2023	$	23,476	$	37,838
Term loan due February 2024 (“2017 Term Loan”)		24,000		25,500
Term loan due January 2026 (“2018 Term Loan”)		54,167		56,488
		101,643		119,826
Less:
Payments due within one year included in current liabilities		11,464		15,286
Debt issuance costs		517		537
Long-term debt less current maturities	$	89,662	$	104,003

The Company is party to an amended and restated credit agreement (the “Credit Agreement”) with Truist Bank (formerly known as Branch Banking and Trust Company), consisting of a

$75

million revolving credit facility expiring in

May 2023,

a term loan maturing in

February 2024 (

“2017

Term Loan”) and a term loan maturing in

January 2026 (

“2018

Term Loan”). 

Obligations outstanding under the

2018

Term Loan have a variable interest rate of LIBOR plus a margin of between

0.85%

and

1.65%

(based on the Company’s funded debt to EBITDA ratio) (

1.77%

at

March 31, 2020

). Obligations outstanding under the revolving credit facility and the

2017

Term Loan generally have a variable interest rate of

one

-month LIBOR plus a margin of between

0.68%

and

1.50%

(based on the Company’s funded debt to EBITDA ratio) (

1.60%

at

March 31, 2020

). The available balance under the revolving credit facility is reduced by outstanding letters of credit. As of

March 31, 2020

, there were

no

outstanding letters of credit. 

On

March 30, 2020,

the Company entered into debt deferment agreements with Truist Bank to: (i) defer contractual principal and interest payments due between

April 1, 2020

and

June 1, 2020

under the

2017

Term Loan and

2018

Term Loan until their respective maturity dates; and (ii) defer contractual interest payments due between

April 1, 2020

and

June 1, 2020

under the revolving credit facility until its maturity date. Contractual principal payments for the

2017

Term Loan are as follows: remainder of

2020

-

$3.0

million;

2021

through

2023

-

$6.0

million per year; and

2024

-

$3.0

million. Contractual principal payments for the

2018

Term Loan are as follows: remainder of

2020

-

$4.6

million;

2021

through

2025

-

$9.3

million per year; and

2026

-

$3.1

million. The term loans do

not

contain pre-payment penalties.

The Company is a party to an interest rate swap with a total notional value of

$12.0

million as of 

March 31, 2020

 pursuant to which it makes fixed payments and receives floating payments. The Company entered into the interest rate swap to offset changes in expected cash flows due to fluctuations in the associated variable interest rates. The Company’s interest rate swap expires in

February 2024.

The interest rate swap is

not

designated as a hedge transaction. Changes in fair value and gains and losses on settlement on the interest rate swap are recognized in interest expense in our statements of comprehensive income. During the

three

months ended

March 31, 2020

and

2019

, a loss of

$0.3

million and

$0.1

million, respectively, was recognized on the interest rate swap.