XML 31 R20.htm IDEA: XBRL DOCUMENT v3.25.1
Note 11 - Debt
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

11.

 DEBT

 

The Company has a Credit and Security Agreement with KeyBank National Association (as amended, the "Credit Agreement "or the "CSA") with a maximum revolving amount of $325 million.

 

At March 31, 2025 and  December 31, 2024, outstanding borrowings under the revolver amounted to $280.0 million and $287.5 million, respectively. The unused credit available under the credit facility was $45 million at March 31, 2025 and $37.5 million at  December 31, 2024. The Company incurred $4.2 million and $0.4 million of interest expense during the three months ended March 31, 2025 and 2024, respectively, in connection with interest due on its outstanding borrowings under the CSA during each period, including the effects of the 2021 Swaps discussed in Note 10, "Derivative Instruments and Hedging Activities", and amortization of deferred financing costs. 

 

The effective rate of interest for our total outstanding borrowings, including the impact of the 2021 Swaps was 5.26% and 5.47%, respectively, as of March 31, 2025 and December 31, 2024. The interest rate in effect for the fixed-rate portion of our outstanding borrowings ($60 million at each of March 31, 2025 and December 31, 2024) was 2.84% at each date. The weighted-average interest rate in effect for the variable-rate portion of our outstanding borrowings ($220 million at March 31, 2025 and $227.5 million at December 31, 2024) was 5.93% at March 31, 2025 and 6.16% at December 31, 2024, and consisted of SOFR plus the Company’s credit spread at March 31, 2025 and December 31, 2024, respectively, as determined per the terms of the CSA. 

 

The CSA contains customary representations and warranties, covenants and events of default. In addition, the CSA contains financial covenants that measure (i) the ratio of the Company’s total funded indebtedness, on a consolidated basis, less the aggregate amount of all unencumbered cash and cash equivalents, to the amount of the Company’s consolidated EBITDA (or the “Leverage Ratio”), in each case as defined and calculated in accordance with the CSA, and (ii) the ratio of the amount of the Company’s consolidated EBITDA to the Company’s consolidated fixed charges (or the “Fixed Charge Coverage Ratio”), in each case as defined and calculated in accordance with the CSA. If an event of default occurs, the lenders under the CSA would be entitled to take various actions, including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor.

 

Revolving loans borrowed under the Credit Agreement mature on September 1, 2026, and the commitments with respect to the revolver will automatically terminate on such date. 

 

At March 31, 2025, the Company was in compliance with its debt covenants, including its most restrictive covenant, the Fixed Charge Coverage Ratio.