NOTE 4 – LONG-TERM DEBT

Debt consists of the following:


	September 30,			December 31,
	2014			2013
Revolving Line of Credit	$	—		$	27,269
Term Loan due July 7, 2019		25,000			—
Various notes payable, maturing through December 2016; payable in various monthly installments, including interest rates ranging from 0.0% to 10.0%		411			757

		25,411			28,026
Less: current maturities		(1,533	)		(255	)

Long-term debt, less current maturities	$	23,878		$	27,771

On July 8, 2014, we entered into a new Credit and Security Agreement (the “New Credit Agreement”) with the lenders named therein and KeyBank National Association, as lead arranger, sole book runner, administrative agent, swing line lender, and issuing lender. Upon entry into the New Credit Agreement, our previous loan and security agreement, as amended, (the “Old Credit Agreement”) was terminated.

The New Credit Agreement provides for a Revolving Line of Credit (“New LOC”) with a maximum limit of $75,000 and a term loan in the amount of $25,000 (“Term Loan”) which was fully funded at closing. The New LOC and Term Loan are due July 7, 2019 (the “Maturity Date”) and are secured by all of our assets except those subject to capital leases. The total facility commitment amount is $100,000 including the New LOC and Term Loan, any outstanding letters of credit, and swing line loans. Up to an aggregate of $10,000 is available to us for the issuance of letters of credit and up to an aggregate of $5,000 is available to us for swing line loans, both of which reduce the availability under the New LOC. The Old Credit Agreement also allowed us to issue Letters of Credit not to exceed $10,000 in the aggregate.

The New LOC and Term Loan bear interest at either 1) the Eurodollar rate (“LIBOR”) or 2) the Base Rate (which approximates Prime Rate), plus a margin based on the type of rate applied and the value (represented as a ratio) of our total debt to earnings (as defined in our New Credit Agreement). The Term Loan amortizes in quarterly principal payments of $313 starting on December 31, 2014, with the quarterly payment amount increasing to $469 from September 30, 2016 through June 30, 2018, and further increasing to $625 from September 30, 2018 through June 30, 2019. Any outstanding principal balance on the Term Loan is due on the Maturity Date.

We had $25,000 outstanding under the Term Loan and no outstanding borrowings under the New LOC as of September 30, 2014. We had $24,500 outstanding on the Line of Credit under the Old Credit Agreement (“Old LOC”) at 1-month LIBOR including margin (2.25%) and $2,769 outstanding on the Old LOC at the Alternate Base Rate including margin (4.25%) as of December 31, 2013. We had additional available borrowings of $15,556 on the Old LOC as of December 31, 2013. To support our insurance programs, we had outstanding Letters of Credit of $9,815 and $7,175 as of September 30, 2014 and December 31, 2013, respectively.

The New Credit Agreement contains financial covenants requiring us to maintain 1) a leverage ratio of debt to earnings, as adjusted for certain items and as defined by the Agreement, of no greater than 3.50 to 1.00 and decreasing over time to 2.75 to 1.00 by March 31, 2016, and 2) a fixed charge coverage ratio, as adjusted for certain items, of no less than 1.10 to 1.00. The New Credit Agreement also contains various restrictive non-financial covenants and a provision requiring that, upon an event of default (as defined by the New Credit Agreement), amounts outstanding under the New LOC and Term Loan would bear interest at the rate as determined above plus 2%.