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Long-Term Debt and Financing Arrangements
12 Months Ended
Dec. 31, 2012
Long-Term Debt and Financing Arrangements

NOTE 11. Long-Term Debt and Financing Arrangements

On March 31, 2011, we amended our Credit Agreement which increased our maximum unsecured borrowing capacity from $10.0 million to $50.0 million and extended the term until March 2014. The interest rate under the Credit Agreement is equal to LIBOR plus 1.75%. The financial covenants require a minimum net worth of $300.0 million and a cash flow leverage ratio of not more than 2.0 to 1.0. The commitment fee charged on the unused line of credit is 0.375%.

We have standby letters of credit that expire at various dates in 2013. As of December 31, 2012, our letters of credit were $3.7 million.

Our unused and available borrowings under our bank revolving line of credit were $46.3 million as of December 31, 2012 and $47.4 million as of December 31, 2011. We were in compliance with our debt covenants as of December 31, 2012.

On August 1, 2011, we entered into an agreement to lease 3,126 chassis for a period of 10 years. We are accounting for this lease as a capital lease. Interest on this capital lease obligation is based on interest rates that approximate currently available interest rates; therefore, indebtedness under this capital lease obligation approximates fair value.

We paid interest of $1.0 million and $0.3 million in 2012 and 2011, respectively, related to this capital lease.