XML 31 R22.htm IDEA: XBRL DOCUMENT v3.23.3
Note 16 - Indebtedness
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Debt Disclosure [Text Block]

(16)

Indebtedness

 

On  December 22, 2021, the Company, as the borrower, entered into a secured $130 million Second Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”) with certain of the Company’s subsidiaries (the “Subsidiary Guarantors”) and Bank of America, N.A., in its capacity as the initial lender, Administrative Agent, Swingline Lender and L/C Issuer, and certain other lenders from time-to-time party thereto. The Second Amended and Restated Credit Agreement amends and restates the Company’s prior credit agreement, originally dated as of  February 1, 2018.

 

The credit facilities under the Second Amended and Restated Credit Agreement consist of a $40 million secured term loan to the Company and a secured revolving credit facility, under which the Company  may borrow up to $90 million. The Second Amended and Restated Credit Agreement matures on  December 21, 2026. The secured term loam requires quarterly principal payments of $1,000,000 which commenced on  March 31, 2022. The proceeds of the Second Amended and Restated Credit Agreement  may be used for general corporate purposes, including funding certain permitted acquisitions. The Company’s obligations under the Second Amended and Restated Credit Agreement are guaranteed by Subsidiary Guarantors.

 

The Second Amended and Restated Credit Agreement calls for interest determined by the Bloomberg Short-Term Bank Yield Index rate (“BSBY”) plus a margin that ranges from 1.25% to 2.0% or, at the discretion of the Company, the bank’s prime rate less a margin that ranges from .25% to zero. In both cases the applicable margin is dependent upon Company performance. Under the Second Amended and Restated Credit Agreement, the Company is subject to a minimum fixed-charge coverage financial covenant as well as a maximum total funded debt to EBITDA financial covenant. The Second Amended and Restated Credit Agreement contains other covenants customary for transactions of this type, including restrictions on certain payments, permitted indebtedness, and permitted investments.

 

At  September 30, 2023, the Company had approximately $43 million in borrowings outstanding under the Second Amended and Restated Credit Agreement, which were used as partial consideration for the DAS Medical and Advant acquisitions, and also had approximately $0.7 million in standby letters of credit outstanding, drawable as a financial guarantee on worker’s compensation insurance policies. At  September 30, 2023, the applicable interest rate was approximately 6.6% and the Company was in compliance with all covenants under the Second Amended and Restated Credit Agreement.

 

Long-term debt consists of the following (in thousands):

 

   

September 30, 2023

  

Revolving credit facility

   $ 10,000  

Term loan

     33,000  

Total long-term debt

     43,000  

Current portion

     (4,000 )

Long-term debt, excluding current portion

   $ 39,000  

 

Future maturities of long-term debt at September 30, 2023 are as follows (in thousands):

 

   

Term Loan

    

Revolving
credit facility

    

Total

  

Remainder of 2023

   $ 1,000     $ -     $ 1,000  

2024

     4,000       -       4,000  

2025

     4,000       -       4,000  

2026

     24,000       10,000       34,000  
    $ 33,000     $ 10,000     $ 43,000