NOTE 9 – LONG-TERM DEBT

Long-term debt consisted of the following at September 30, 2015 and December 31, 2014 (in thousands):

	September 30, 2015			December 31, 2014

Line of credit	$	189,546		$	193,443
Term loan		184,375			212,500
Promissory note payable in monthly installments at 2.9% through January 2021, collateralized by equipment		4,612			5,216
Unsecured subordinated notes payable in quarterly installments at 5%		-			357
Less unamortized debt issuance costs		(2,376	)		(2,714	)
		376,157			408,802
Less: Current portion		(47,699	)		(38,608	)
Long-term debt less current maturities	$	328,458		$	370,194

On July 11, 2012, DXP entered into a credit facility with Wells Fargo Bank National Association, as Issuing Lender, Swingline Lender and Administrative Agent for the lenders (as amended, the “Original Facility”). On January 2, 2014, the Company entered into an Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, as Issuing Lender and Administrative Agent for other lenders (the “Facility”), amending and restating the Original Facility. On August 6, 2015 and September 30, 2015, DXP amended the Facility.

The Facility provides a term loan and a $350 million revolving line of credit to the Company. At September 30, 2015 the term loan component of the facility was $184.4 million. The Facility expires on January 2, 2019.

The Facility provides the option of interest at LIBOR (or CDOR for Canadian dollar loans) plus an applicable margin ranging from 1.25% to 2.75% or prime plus an applicable margin from 0.25% to 1.75% where the applicable margin is determined by the Company’s leverage ratio as defined by the Facility as of the last day of the fiscal quarter most recently ended prior to the date of borrowing. Commitment fees of 0.20% to 0.50% per annum are payable on the portion of the Facility capacity not in use at any given time on the line of credit. Commitment fees are included as interest in the consolidated statements of income.

On September 30, 2015, the LIBOR based rate of the Facility was LIBOR plus 2.25% the prime based rate of the Facility was prime plus 1.25%, and the commitment fee was 0.40%. At September 30, 2015, $373.9 million was borrowed under the Facility at a weighted average interest rate of approximately 2.45% under the LIBOR options. At September 30, 2015, the Company had $31.4 million available for borrowing under the Facility.

The Facility contains financial covenants defining various financial measures and levels of these measures with which the Company must comply. Covenant compliance is assessed as of each quarter end. Substantially all of the Company’s assets are pledged as collateral to secure the Facility.