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Note 11 - Credit Agreements
 3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Debt Disclosure [Text Block]

11.   Credit Agreements

 

Short-term borrowings are included in the condensed consolidated balance sheets as follows:

 

  

March 31,

  

December 31,

 
  

2022

  

2021

 

ABL Facility

 $-  $- 

Other lines of credit

  84,995   72,035 

Total

 $84,995  $72,035 

 

As of March 31, 2022 and December 31, 2021, short-term borrowings consisted of borrowings by the Company’s foreign subsidiaries on local lines of credit.

 

Long-term borrowings are included in the condensed consolidated balance sheets as follows:

 

  

March 31,

  

December 31,

 
  

2022

  

2021

 

Term Loan

 $780,000  $780,000 

Original issue discount and deferred financing costs

  (12,577)  (13,215)

ABL Facility

  210,000   100,000 

Finance lease obligation

  27,941   39,175 

Other

  1,600   2,060 

Total

  1,006,964   908,020 

Less: current portion of debt

  1,292   1,721 

Less: current portion of finance lease obligation

  2,987   4,208 

Total

 $1,002,685  $902,091 

 

The Company’s credit agreements originally provided for a $1,200,000 term loan B credit facility (Term Loan) and currently include a $300,000 uncommitted incremental term loan facility. The maturity date of the Term Loan is currently December 13, 2026. The Term Loan is guaranteed by substantially all of the Company’s wholly-owned domestic restricted subsidiaries and is secured by associated collateral agreements which pledge a first priority lien on virtually all of the Company’s assets, including fixed assets and intangibles, other than all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, which are secured by a second priority lien. The Term Loan initially bore interest at rates based upon either a base rate plus an applicable margin of 1.75% or adjusted LIBOR rate plus an applicable margin of 2.75%, subject to a LIBOR floor of 0.75%. Currently, the Term Loan bears interest at rates based upon either a base rate plus an applicable margin of 0.75% or adjusted LIBOR rate plus an applicable margin of 1.75%, without a LIBOR floor. The Term Loan agreement has been amended a number of times since inception.

 

The Term Loan does not require an excess cash flow payment if the Company’s secured leverage ratio is maintained below 3.75 to 1.00 times. As of March 31, 2022, the Company’s net secured leverage ratio was 1.00 to 1.00 times, and the Company was in compliance with all covenants of the Term Loan. There are no financial maintenance covenants on the Term Loan.

 

The Company’s credit agreements also provide for a $500,000 senior secured ABL revolving credit facility (ABL Facility). Borrowings under the ABL Facility are guaranteed by substantially all of the Company’s wholly-owned domestic restricted subsidiaries and are secured by associated collateral agreements which pledge a first priority lien on all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, and a second priority lien on all other assets, including fixed assets and intangibles of the Company and certain domestic subsidiaries. ABL Facility borrowings initially bore interest at rates based upon either a base rate plus an applicable margin of 1.00% or adjusted LIBOR rate plus an applicable margin of 2.00%, in each case, subject to adjustments based upon average availability under the ABL Facility. Currently, the ABL Facility bears interest at rates based upon either a base rate plus an applicable margin of 0.00% to 0.25% or adjusted LIBOR rate plus an applicable margin of 1.00% to 1.25%, in each case, based on average availability under the ABL Facility. The ABL Facility has been amended a number of times since inception. 

 

As of March 31, 2022, there was $210,000 outstanding under the ABL Facility, leaving $289,480 of availability, net of outstanding letters of credit.