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Long-Term Debt And Lines Of Credit
 12 Months Ended
Dec. 31, 2022
Long-Term Debt And Lines Of Credit [Abstract]  
Long-Term Debt And Lines Of Credit 3.    Long-Term Debt and Lines of Credit

On June 28, 2022, we replaced our existing credit facility with a fifth amended and restated Credit Agreement (“2022 Credit Facilities”). Terms of the 2022 Credit Facilities consist of a five-year $450 million revolver as well as a five-year $100 million term loan. Principal payments of $1.25 million on the term loan are due on the last day of each fiscal quarter, with a final payment due at the end of the agreement. The 2022 Credit Facilities have a floating interest rate that is generally the secured overnight financing rate (“SOFR”) plus an additional tiered rate which varies based on our current leverage ratio. As of December 31, 2022, the interest rate is SOFR plus 100 basis points. At December 31, 2021, the interest rate was LIBOR plus 100 basis points. The 2022 Credit Facilities include an expansion feature that provides the Company the opportunity to increase its revolver and or term loan by an additional $250 million. On February 21, 2023, we gave notice that we would pay off $50 million of the $100 million term loan on February 28, 2023. There are no prepayment penalties associated with this pay off. This will reduce the borrowing capacity of the 2022 Credit Facilities from $550 million to $500 million.

Debt issuance costs associated with the prior credit agreement were not written off as the lenders did not change and their relative percentage participation in the facility was substantially the same. Deferred financing costs of $1.5 million for the 2022 Credit Facilities were capitalized during the quarter ended June 30, 2022.


‎

The debt outstanding at December 31, 2022 and 2021 consists of the following (in thousands):

December 31,

2022

2021

Revolver

$

-

$

185,000

Term loan

97,500

-

Total

97,500

185,000

Current portion of long-term debt

(5,000)

-

Long-term debt

$

92,500

$

185,000

 

 Scheduled payments of the 2022 Credit Facilities are as follows:

2023

$

5,000

2024

5,000

2025

5,000

2026

5,000

2027

77,500

$

97,500

Capitalized interest was not material for any of the periods shown. Summarized below are the total amounts of interest paid during the years ended December 31 (in thousands):

2022

$

3,704

2021

1,403

2020

2,028

The 2022 Credit Facilities contains the following quarterly financial covenants effective as of December 31, 2022:

Chemed

Description

Requirement

December 31, 2022

Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA)

< 3.50 to 1.00

0.16 to 1.00

Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense)

> 3.00 to 1.00

98.26 to 1.00

We are in compliance with all debt covenants as of December 31, 2022. We have issued $45.3 million in standby letters of credit as of December 31, 2022 for insurance purposes. Issued letters of credit reduce our available credit under the 2022 Credit Facilities. As of December 31, 2022, we have approximately $404.7 million of unused lines of credit available and eligible to be drawn down under our revolving credit facility.