Note 3 - Long-term Debt

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Long-term Debt [Text Block]

Debt consisted of the following (in thousands):

	September 30,		December 31,
	2020		2019
Credit Facilities:
Revolving credit facility due May 2023	$	2,928	$	37,838
Term loan due February 2024 (“2017 Term Loan”)		22,500		25,500
Term loan due January 2026 (“2018 Term Loan”)		51,845		56,488
		77,273		119,826
Less:
Payments due within one year included in current liabilities		15,286		15,286
Debt issuance costs		476		537
Long-term debt less current maturities	$	61,511	$	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) (1.00% at September 30, 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) (0.83% at September 30, 2020). The available balance under the revolving credit facility is reduced by outstanding letters of credit. As of September 30, 2020, the Company had $8.9 million in outstanding letters of credit under the revolving credit facility. 

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 - $1.5 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 - $2.3 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 $10.5 million as of  September 30, 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 nine months ended September 30, 2020 and 2019, a loss of $0.3 million and $0.3 million, respectively, was recognized on the interest rate swap.