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LONG TERM DEBT AND CAPITAL LEASES | 12 Months Ended
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Dec. 31, 2017
Debt Disclosure [Abstract] |
LONG TERM DEBT AND CAPITAL LEASES | LONG TERM DEBT AND CAPITAL LEASES A summary of long-term debt and capital leases is as follows:
| December 31,
| 2017 |  | 2016
Senior Secured Credit Facility: |  |  |
Revolving Credit Facility due October 2021; bearing interest at LIBOR plus 2.75% | $ | 36,000 |  |  | $ | 62,600 |
Term Loan B Facility due October 2023; bearing interest at LIBOR plus 2.50% | 346,500 |  |  | 350,000 |
Tax-Exempt Bonds: |  |  |
New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds Series 2014 due December 2044 - fixed rate interest period through 2019; bearing interest at 3.75% | 25,000 |  |  | 25,000 |
New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds Series 2014R-2 due December 2044 - fixed rate interest period through 2026; bearing interest at 3.125% | 15,000 |  |  | 15,000 |
Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2005R-3 due January 2025 - fixed rate interest period through 2025; bearing interest at 5.25% | 25,000 |  |  | — |
Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2015 due August 2035 - fixed rate interest period through 2025; bearing interest at 5.125% | 15,000 |  |  | 15,000 |
Vermont Economic Development Authority Solid Waste Disposal Long-Term Revenue Bonds Series 2013 due April 2036 - fixed rate interest period through 2018; bearing interest at 4.75% | 16,000 |  |  | 16,000 |
Business Finance Authority of the State of New Hampshire Solid Waste Disposal Revenue Bonds Series 2013 due April 2029 - fixed rate interest period through 2019; bearing interest at 4.00% | 11,000 |  |  | 11,000 |
Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2005R-2 due January 2025 - fixed rate interest period through 2017; bore interest at 6.25% | — |  |  | 21,400 |
Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2005R-1; letter of credit backed due January 2025 - bore interest at SIFMA Index | — |  |  | 3,600 |
Other: |  |  |
Capital leases maturing through September 2023; bearing interest at up to 7.70% | 5,595 |  |  | 5,534 |
Notes payable maturing through June 2027; bearing interest at up to 7.00% | 2,585 |  |  | 449 |
Principal amount of long-term debt and capital leases | 497,680 |  |  | 525,583 |
Less—unamortized discount and debt issuance costs (1) | 15,178 |  |  | 16,936 |
Long-term debt and capital leases less unamortized discount and debt issuance costs | 482,502 |  |  | 508,647 |
Less—current maturities of long-term debt | 4,926 |  |  | 4,686 |
| $ | 477,576 |  |  | $ | 503,961 |
(1) | A summary of unamortized discount and debt issuance costs by debt instrument follows:
| December 31,
| 2017 |  | 2016
Revolving Credit Facility | $ | 3,938 |  |  | $ | 4,965 |
Term Loan B Facility (including unamortized discount of $1,482 and $1,712) | 7,392 |  |  | 7,718 |
New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds Series 2014 | 1,034 |  |  | 1,221 |
New York State Environmental Facilities Corporation Solid Waste Disposal Revenue Bonds Series 2014R-2 | 511 |  |  | 571 |
Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2005R-3 | 603 |  |  | — |
Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2015 | 691 |  |  | 760 |
Vermont Economic Development Authority Solid Waste Disposal Long-Term Revenue Bonds Series 2013 | 573 |  |  | 605 |
Business Finance Authority of the State of NH Solid Waste Disposal Revenue Bonds Series 2013 | 436 |  |  | 563 |
Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2005R-2 | — |  |  | 502 |
Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2005R-1 | — |  |  | 31 |
| $ | 15,178 |  |  | $ | 16,936 |
Credit Facility In fiscal year 2016, we entered into a credit agreement ("Credit Agreement"), which provides for a $350,000 aggregate principal amount term loan B facility ("Term Loan B Facility") and a $160,000 revolving line of credit facility ("Revolving Credit Facility" and, together with the Term Loan B Facility, the "Credit Facility"). The net proceeds from this transaction were used to repay in full our senior secured asset-based revolving credit and letter of credit facility ("ABL Facility") and to redeem all of our remaining outstanding 7.75% Senior Subordinated Notes due 2019 ("2019 Notes") at a redemption price equal to 101.938% of the principal amount thereof plus accrued and unpaid interest thereon and to pay related transaction expenses. We have the right to request, at our discretion, an increase in the amount of loans under the Credit Facility by an aggregate amount of $100,000, subject to the terms and conditions set forth in the Credit Agreement. The Term Loan B Facility has a 7-year term and initially bore interest at a rate of LIBOR plus 3.00% per annum (with a 1.00% LIBOR floor), which would be reduced to a rate of LIBOR plus 2.75% upon us reaching a consolidated net leverage ratio of 3.75 x or less. The Revolving Credit Facility has a 5-year term and initially bore interest at a rate of LIBOR plus 3.00% per annum, which is adjusted from an applicable rate of LIBOR plus 2.50% to 3.25% depending on our consolidated net leverage ratio. In fiscal year, 2017, we entered into the first amendment (“Repricing Amendment”) to the Credit Agreement. The Repricing Amendment decreased the applicable interest margin for our Term Loan B Facility by 25 basis points for both LIBOR borrowings and base rate borrowings. The applicable interest rate margin is determined based on our consolidated net leverage ratio, with the interest rate initially set at 2.75% for LIBOR borrowings (with a 1.00% LIBOR floor) and 1.75% for base rate borrowings. The applicable interest rate is reduced to 2.50% for LIBOR borrowings (with a 1.00% LIBOR floor), and 1.50% for base rate borrowings upon us reaching a consolidated net leverage ratio of 3.75 x or less, which was the case at December 31, 2017. The Credit Facility is guaranteed jointly and severally, fully and unconditionally by all of our significant wholly-owned subsidiaries and secured by substantially all of our assets. As of December 31, 2017, further advances were available under the Revolving Credit Facility in the amount of $101,457. The available amount is net of outstanding irrevocable letters of credit totaling $22,543, at which date no amount had been drawn. The Credit Agreement requires us to maintain a minimum interest coverage ratio and a maximum consolidated net leverage ratio, to be measured at the end of each fiscal quarter. As of December 31, 2017, we were in compliance with the covenants contained in the Credit Agreement. In addition to these financial covenants, the Credit Agreement also contains a number of important customary affirmative and negative covenants which restrict, among other things, our ability to sell assets, incur additional debt, create liens, make investments, and pay dividends. We do not believe that these restrictions impact our ability to meet future liquidity needs. An event of default under any of our debt agreements could permit some of our lenders, including the lenders under the Credit Facility, to declare all amounts borrowed from them to be immediately due and payable, together with accrued and unpaid interest, or, in the case of the Credit Facility, terminate the commitment to make further credit extensions thereunder, which could, in turn, trigger cross-defaults under other debt obligations. If we were unable to repay debt to our lenders, or were otherwise in default under any provision governing our outstanding debt obligations, our secured lenders could proceed against us and against the collateral securing that debt. Tax-Exempt Financings New York Bonds. In fiscal year 2016, we completed a financing transaction involving the issuance by the New York State Environmental Facilities Corporation of $15,000 aggregate principal amount of Solid Waste Disposal Revenue Bonds Series 2014R-2 (“New York Bonds 2016”). As of December 31, 2017, we had outstanding $40,000 aggregate principal amount of Solid Waste Disposal Revenue Bonds Series 2014 ("New York Bonds 2014") and New York Bonds 2016 issued by the New York State Environmental Facilities Corporation under the indenture dated December 1, 2014 (collectively, the “New York Bonds”). The New York Bonds 2014 accrue interest at 3.75% per annum through December 1, 2019, at which time they may be converted from a fixed rate to a variable rate. The New York Bonds 2016 accrue interest at 3.125% per annum through May 31, 2026, at which time they may be converted from a fixed rate to a variable rate. The New York Bonds, which are unsecured and guaranteed jointly and severally, fully and unconditionally by all of our significant wholly-owned subsidiaries, require interest payments on June 1 and December 1 of each year and mature on December 1, 2044. We borrowed the proceeds of the New York Bonds to finance or refinance certain capital projects in the state of New York and to pay certain costs of issuance of the New York Bonds. Maine Bonds. In fiscal year 2017, we completed the remarketing of $3,600 aggregate principal amount of Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2005R-1 and $21,400 aggregate principal amount of Finance Authority of Maine Solid Waste Disposal Revenue Bonds Serires 2005R-2 as one series of bonds known as $25,000 aggregate principal amount of Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2005R-3 (“FAME Bonds 2005R-3”). As of December 31, 2017, we had outstanding $25,000 aggregate principal amount of FAME Bonds 2005R-3. The FAME Bonds 2005R-3, which are unsecured and guaranteed jointly and severally, fully and unconditionally by all of our significant wholly-owned subsidiaries, accrue interest at 5.25% per annum, and interest is payable semiannually in arrears on February 1 and August 1 of each year until such bonds mature on January 1, 2025. As of December 31, 2017, we had outstanding $15,000 aggregate principal amount of senior unsecured Finance Authority of Maine Solid Waste Disposal Revenue Bonds Series 2015 ("FAME Bonds 2015"). The FAME Bonds 2015, which are unsecured and guaranteed jointly and severally, fully and unconditionally by all of our significant wholly-owned subsidiaries, accrue interest at 5.125% per annum through August 1, 2025, at which time they may be converted from a fixed to a variable rate. During the fixed interest rate period, the FAME Bonds 2015 are not be supported by a letter of credit. Interest is payable semiannually in arrears on February 1 and August 1 of each year. An additional $15,000 aggregate principal amount of FAME Bonds 2015 may be offered under the same indenture in the future. The FAME Bonds 2015 mature on August 1, 2035. We borrowed the proceeds of the offering of the FAME Bonds 2015 to finance or refinance the costs of certain of our solid waste landfill facilities and solid waste collection, organics and transfer, recycling and hauling facilities, and to pay certain costs of the issuance of the FAME Bonds 2015. Vermont Bonds. As of December 31, 2017, we had outstanding $16,000 aggregate principal amount of senior unsecured Vermont Economic Development Authority Solid Waste Disposal Long-Term Revenue Bonds Series 2013 (“Vermont Bonds”). The Vermont Bonds, which are guaranteed jointly and severally, fully and unconditionally by all of our significant wholly-owned subsidiaries, accrue interest at 4.75% per annum through April 1, 2018, at which time they may be converted from a fixed rate to a variable rate. During the fixed interest rate period, the Vermont Bonds are not be supported by a letter of credit. Interest is payable semiannually in arrears on April 1 and October 1 of each year. The Vermont Bonds mature on April 1, 2036. We borrowed the proceeds of the Vermont Bonds to finance or refinance certain qualifying property, plant and equipment assets purchased in the state of Vermont. New Hampshire Bonds. As of December 31, 2017, we had outstanding $11,000 aggregate principal amount of senior unsecured Solid Waste Disposal Revenue Bonds Series 2013 issued by the Business Finance Authority of the State of New Hampshire (“New Hampshire Bonds”). The New Hampshire Bonds, which are guaranteed jointly and severally, fully and unconditionally by all of our significant wholly-owned subsidiaries, accrue interest at 4.00% per annum through October 1, 2019, at which time they may be converted from a fixed rate to a variable rate. During the fixed interest rate period, the New Hampshire Bonds are not be supported by a letter of credit. Interest is payable in arrears on April 1 and October 1 of each year. The New Hampshire Bonds mature on April 1, 2029. We borrowed the proceeds of the New Hampshire Bonds to finance or refinance certain qualifying property, plant and equipment assets purchased in the state of New Hampshire. Loss on Debt Extinguishment We recorded a loss on debt extinguishment in fiscal years 2017, 2016 and 2015 of $517, $13,747 and $999, respectively, associated with the following:
• | the write-off of debt issuance costs in connection with the Repricing Amendment in fiscal year 2017;
• | the write-off of debt issuance costs in connection with the remarketing of the FAME Bonds 2005R-1 and the FAME Bonds 2005R-2 into the FAME Bonds 2005R-3 in fiscal year 2017;
• | the write-off of debt issuance costs in connection with changes to the borrowing capacity from our ABL Facility to the Credit Facility in fiscal year 2016;
• | the repurchase price premium and write-off of debt issuance costs and unamortized original issue discount associated with the early redemption, repurchase and retirement of our 2019 Notes in fiscal years 2016 and 2015; and
• | the write-off of debt issuance costs in connection with changes to the borrowing capacity from our Refinanced Revolving Credit Facility to the ABL Facility in fiscal year 2015.
Interest Expense The components of interest expense are as follows:
| Fiscal Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Interest expense on long-term debt and capital leases | $ | 22,060 |  |  | $ | 34,741 |  |  | $ | 35,868 |
Amortization of debt issuance costs and discount on long-term debt | 2,692 |  |  | 3,881 |  |  | 3,977 |
Letter of credit fees | 703 |  |  | 593 |  |  | 637 |
Less: capitalized interest | (295 | ) |  | (273 | ) |  | (62 | )
Total interest expense | $ | 25,160 |  |  | $ | 38,942 |  |  | $ | 40,420 |
Fair Value of Debt As of December 31, 2017, the fair value of our fixed rate debt, including the FAME Bonds 2005R-3, FAME Bonds 2015, Vermont Bonds, New York Bonds and New Hampshire Bonds was approximately $106,344 and the carrying value was $107,000. The fair value of the FAME Bonds 2005R-3, FAME Bonds 2015, Vermont Bonds, New York Bonds and New Hampshire Bonds is considered to be Level 2 within the fair value hierarchy as the fair value is determined using market approach pricing provided by a third-party that utilizes pricing models and pricing systems, mathematical tools and judgment to determine the evaluated price for the security based on the market information of each of the bonds or securities with similar characteristics. As of December 31, 2017, the fair value of our Term Loan B Facility was approximately $347,799 and the carrying value was $346,500. The fair value of the Term Loan B Facility is considered to be Level 2 within the fair value hierarchy as its fair value is based off of quoted market prices in a principal to principal market with limited public information. As of December 31, 2017, the fair value of our Revolving Credit Facility approximated its carrying value of $36,000 based on current borrowing rates for similar types of borrowing arrangements, or Level 2 inputs. Although we have determined the estimated fair value amounts of the Term Loan B Facility, FAME Bonds 2005R-3, FAME Bonds 2015, Vermont Bonds, New York Bonds and New Hampshire Bonds using available market information and commonly accepted valuation methodologies, a change in available market information, and/or the use of different assumptions and/or estimation methodologies could have a material effect on the estimated fair values. These amounts have not been revalued, and current estimates of fair value could differ significantly from the amounts presented. Future Maturities of Debt Aggregate principal maturities of long-term debt and capital leases are as follows:
Estimated Future Payments as of December 31, 2017
2018 | $ | 4,926 |
2019 | 5,002 |
2020 | 5,269 |
2021 | 40,773 |
2022 | 4,279 |
Thereafter | 437,431 |
| $ | 497,680 |

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- Definition The entire disclosure for debt and capital lease obligations can be reported. 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. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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