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Debt | 12 Months Ended
--- | ---
Mar. 31, 2020
Debt Disclosure [Abstract] |
Debt | Debt The following summarizes the recent significant transactions impacting the Company’s indebtedness:
• | On January 31, 2014, the Company entered into a senior secured credit facility (the “2014 Senior Secured Credit Facility”), which consisted of a $20.0 million revolving line of credit and a $105.0 million term loan. Also, on January 31, 2014, the Company entered into a $40.0 million second lien term loan (the “Second Lien Term Loan”).
• | On June 7, 2016, the Company incurred an incremental $64.0 million in term loan borrowings under the 2014 Senior Secured Credit Facility to fund, in part, a $72.0 million special dividend to stockholders, and increased the total availability under the revolving credit facility to $25.0 million.
• | On September 27, 2016, the Company used a portion of the proceeds from the initial public offering to repay the entire outstanding balance of $40.0 million from the Second Lien Term Loan.
• | On December 23, 2016, the Company refinanced its outstanding obligations under the 2014 Senior Secured Credit Facility, entering into a new 5-year, $200.0 million senior secured credit agreement, as further described below.
• | On August 25, 2017, the Company amended its senior secured credit agreement to increase the total availability under the revolving line of credit to $50.0 million and to lower the interest rates and extend the maturity date to August 25, 2022.
• | On April 8, 2020, the Company amended its senior secured credit agreement to modify the Company’s quarterly maintenance covenants, and to add interest rates with respect to borrowings associated with the added increased maximum permitted total net leverage ratios.
The Company’s outstanding debt as of March 31, 2020, March 31, 2019 and December 31, 2018 consists of the following (in thousands):
| March 31, 2020 |  | March 31, 2019 |  | December 31, 2018
Debt: |  |  |  |  |
Term loan | $ | 135,853 |  |  | $ | 144,810 |  |  | $ | 146,737 |
Finance lease obligations | 3,012 |  |  | 3,783 |  |  | 3,982 |
Total debt | 138,865 |  |  | 148,593 |  |  | 150,719 |
Less: debt issuance costs | (209 | ) |  | (309 | ) |  | (335 | )
Total debt, net of issuance costs | 138,656 |  |  | 148,284 |  |  | 150,384 |
Less: current portion | (12,568 | ) |  | (10,259 | ) |  | (9,861 | )
Long-term portion of debt | $ | 126,088 |  |  | $ | 138,025 |  |  | $ | 140,523 |
Senior secured credit agreement, as amended On December 23, 2016, the Company entered into a five-year, $200.0 million Senior Secured Credit Agreement (as amended, the "Credit Agreement") with a syndicate consisting of several large financial institutions. The Credit Agreement was first amended on August 25, 2017 (the "First Amendment"), increasing the aggregate commitments to $215.0 million. The Credit Agreement, as amended, consists of a $50.0 million revolving line of credit (the “Revolving Credit Facility”) and a $165.0 million term loan (the “Term Loan Facility”). The Credit Agreement was amended again on December 7, 2018 to reflect the change in the Company's fiscal year-end from December 31 to March 31, and amended again on April 8, 2020 (the "Third Amendment") to (i) increase the maximum permitted total net leverage ratio for certain fiscal quarters, (ii) reduce the minimum fixed charge coverage ratio for certain fiscal quarters, (iii) add additional interest rates to correspond to the increased maximum permitted total net leverage ratios, (iv) increase the amount of cash netted in the calculation of the consolidated total net leverage ratio, and (v) amend the language around the level of add backs to the adjusted consolidated EBITDA definition. All amounts under the Revolving Credit Facility are available for draw until the maturity date on August 25, 2022. The Revolving Credit Facility is collateralized by substantially all of the Company’s assets and requires payment of an unused fee ranging from 0.35% to 0.25% (based on the Company’s consolidated total net leverage ratio) times the average daily amount of unutilized commitments under the Revolving Credit Facility. The Revolving Credit Facility also provides for sub-facilities in the form of a $7.0 million letter of credit and a $5.0 million swing line loan; however, all amounts under the Revolving Credit Facility cannot exceed $50.0 million. The unused balance of the Revolving Credit Facility as of March 31, 2020 was $49.8 million. The Term Loan Facility maturity date is also August 25, 2022 and is collateralized by substantially all of the Company’s assets. Amortization installment payments on the Term Loan Facility are required to be made in quarterly installments of (i) $2,475,000 for fiscal quarters ending September 30, 2019 through June 30, 2020, (ii) $3,093,750 for fiscal quarters ending September 30, 2020 through June 30, 2021 and (iii) $4,125,000 for fiscal quarters ending September 30, 2021 through June 30, 2022. The remaining Term Loan Facility balance is due upon the maturity date. The Term Loan Facility can be prepaid at any time without penalty and is subject to mandatory prepayments when there is (i) excess cash flow, which is defined as EBITDA less certain customary deductions, (ii) non-ordinary course asset dispositions that result in net proceeds in excess of $2.5 million during a year, unless reinvested within twelve months, or (iii) issuance of additional debt. Both the Revolving Credit Facility and the Term Loan Facility bear interest, at the Company’s option, at either a rate per annum equal to either (i) a rate per annum equal to an adjusted LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for the applicable interest period (subject to a minimum floor of 0%) plus an applicable margin ranging from 1.50% to 3.25% (amended from 1.50% to 2.75% as previously set forth in the Credit Agreement) based on the Company’s consolidated total net leverage ratio or (ii) a floating base rate plus an applicable margin ranging from 0.50% to 2.25% (amended from 0.50% to 1.75%) based on the Company’s consolidated total net leverage ratio. The interest rate for the Term Loan Facility as of March 31, 2020 was approximately 3.2%. The Credit Agreement contains a number of covenants that, among other things, restrict the Company's ability to (subject to certain exceptions) pay dividends and distributions or repurchase the Company's capital stock, incur additional indebtedness, create liens on assets, engage in mergers or consolidations and sell or otherwise dispose of assets. The Credit Agreement also includes reporting, financial and maintenance covenants that require the Company to, among other things, comply with certain consolidated total net leverage ratios and consolidated fixed charge coverage ratios. As of March 31, 2020, March 31, 2019 and December 31, 2018, the Company was in compliance with all financial covenants. Aggregate future minimum principal payments are as follows (in thousands):
Year ending March 31, | Term Loan
2021 | $ | 11,756 |
2022 | 15,469 |
2023 | 109,725 |
Total | $ | 136,950 |
Interest expense The components of interest expense, net are as follows (in thousands):
| Year ended March 31, |  | Three months ended March 31, (transition period) |  | Year ended December 31,
| 2020 |  | 2019 |  | 2018 |  | 2017
Interest on term loan debt | $ | 6,096 |  |  | $ | 1,774 |  |  | $ | 6,774 |  |  | $ | 7,271 |
Amortization of debt issuance costs | 747 |  |  | 190 |  |  | 792 |  |  | 810 |
Interest on revolving line of credit | 149 |  |  | 40 |  |  | 132 |  |  | 526 |
Interest on finance leases | 179 |  |  | 50 |  |  | 155 |  |  | 168 |
Interest income | (863 | ) |  | (205 | ) |  | (37 | ) |  | — |
Interest expense, net | $ | 6,308 |  |  | $ | 1,849 |  |  | $ | 7,816 |  |  | $ | 8,775 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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