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Line of Credit, Long-Term Debt and Capital Lease Obligations | 12 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
Line of Credit, Long-Term Debt and Capital Lease Obligations | 10. Line of Credit, Long-Term Debt and Capital Lease Obligations: The Company’s credit agreement, as amended (the “Credit Agreement”) provides for a $1.7 billion unsecured revolving credit facility and a $200.0 million term loan and includes a $75.0 million sub-facility for swingline loans and a $37.5 million sub-facility for the issuance of letters of credit. The Company may increase the Credit Agreement to up to $2.2 billion on an unsecured basis, subject to the satisfaction of specified conditions. The Credit Agreement matures on October 29, 2019 and is guaranteed by substantially all of the Company’s subsidiaries and affiliated professional contractors. At the Company’s option, borrowings under the Credit Agreement (other than swingline loans) will bear interest at (i) the Alternate Base Rate (defined as the higher of (a) the prime rate, (b) the Federal Funds Rate plus 1/2 of 1.00% and (c) LIBOR for an interest period of one month plus 1.00%) plus an applicable margin rate ranging from 0.125% to 0.750% based on the Company’s consolidated leverage ratio or (ii) the LIBOR rate plus an applicable margin rate ranging from 1.125% to 1.750% based on the Company’s consolidated leverage ratio. Swingline loans will bear interest at the alternate base rate plus the applicable margin. The Credit Agreement also calls for other customary fees and charges, including an unused commitment fee ranging from 0.150% to 0.300% of the unused lending commitments, based on the Company’s consolidated leverage ratio. The Credit Agreement contains customary covenants and restrictions, including covenants that require the Company to maintain a minimum interest coverage ratio, not to exceed a specified consolidated leverage ratio and to comply with laws. The Credit Agreement permits the Company to pay dividends and make certain other distributions, subject to limitations specified therein. Failure to comply with these covenants would constitute an event of default under the Credit Agreement, notwithstanding the ability of the Company to meet its debt service obligations. The Credit Agreement also includes various customary remedies for the lenders following an event of default, including the acceleration of repayment of outstanding amounts under the Credit Agreement. At December 31, 2016, the Company believes it was in compliance, in all material respects, with the financial covenants and other restrictions applicable under the Credit Agreement. On December 8, 2015, the Company completed a private offering of $750.0 million aggregate principal amount of 2023 Senior Notes. The Company’s obligations under the 2023 Senior Notes are guaranteed on an unsecured senior basis by the same subsidiaries and affiliated professional contractors that guarantee the Credit Agreement. Interest on the 2023 Senior Notes accrues at the rate of 5.25% per annum and is payable semi-annually in arrears on June 1 and December 1. At any time prior to December 1, 2018, the Company may redeem all or a portion of the 2023 Senior Notes at a redemption price equal to 100% of the principal amount of the notes being redeemed plus an applicable redemption premium and accrued and unpaid interest to the redemption date. In addition, at any time prior to December 1, 2018, the Company may redeem up to 35% of the aggregate principal amount of the 2023 Senior Notes at a redemption price of 105.250% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, using proceeds from one or more equity offerings. On or after December 1, 2018, the Company may redeem all or a portion of the 2023 Senior Notes, at the redemption prices of 103.938% in 2018, 102.625% in 2019, 101.313% in 2020 and 100% in 2021 and thereafter, plus accrued and unpaid interest to the redemption date. The indenture under which the 2023 Senior Notes are issued, among other things, limits our ability to (1) incur liens and (2) enter into sale and lease-back transactions, and also limits our ability to merge or dispose of all or substantially all of our assets, in all cases, subject to a number of customary exceptions. Although we are not required to make mandatory redemption or sinking fund payments with respect to the 2023 Senior Notes, upon the occurrence of a change in control of MEDNAX, we may be required to repurchase the 2023 Senior Notes at a purchase price equal to 101% of the aggregate principal amount of the 2023 Senior Notes repurchased plus accrued and unpaid interest. The Company presents issuance costs related to long-term debt liabilities, other than revolving credit arrangements, as a direct deduction from the carrying value of that long-term debt. The carrying value of the Company’s long-term debt was $1.7 billion and $1.3 billion at December 31, 2016 and 2015, respectively, and consisted of the following (in thousands):
|  | December 31, 2016 |
|  | Principal |  |  | Unamortized Debt Issuance Costs |  |  | Total |
2023 Senior Notes |  | $ | 750,000 |  |  | $ | (11,109 | ) |  | $ | 738,891 |
Revolving line of credit |  |  | 783,500 |  |  |  | — |  |  |  | 783,500 |
Term loan |  |  | 180,000 |  |  |  | (259 | ) |  |  | 179,741 |
|  |  | 1,713,500 |  |  |  | (11,368 | ) |  |  | 1,702,132 |
Less: Current portion |  |  | (20,000 | ) |  |  | — |  |  |  | (20,000 | )
Long-term portion |  | $ | 1,693,500 |  |  | $ | (11,368 | ) |  | $ | 1,682,132 |
|  | December 31, 2015 |
|  | Principal |  |  | Unamortized Debt Issuance Costs |  |  | Total |
2023 Senior Notes |  | $ | 750,000 |  |  | $ | (12,695 | ) |  | $ | 737,305 |
Revolving line of credit |  |  | 343,500 |  |  |  | — |  |  |  | 343,500 |
Term loan |  |  | 190,000 |  |  |  | (401 | ) |  |  | 189,599 |
|  |  | 1,283,500 |  |  |  | (13,096 | ) |  |  | 1,270,404 |
Less: Current portion |  |  | (10,000 | ) |  |  | — |  |  |  | (10,000 | )
Long-term portion |  | $ | 1,273,500 |  |  | $ | (13,096 | ) |  | $ | 1,260,404 |
The Company has outstanding letters of credit which reduced the amount available under the Credit Agreement by $0.4 million at December 31, 2016. At December 31, 2016, the Company had an available balance on its Credit Agreement of $916.1 million. The carrying values of the Company’s variable rate revolving line of credit and term loan approximate fair value due to the short-term nature of the interest rates. The estimated fair value of the Company’s 2023 Notes was $773.4 million and $753.8 million, at December 31, 2016 and 2015, respectively, and was estimated using trading prices as of December 31, 2016 and December 31, 2015 as Level 2 inputs to estimate fair value. Aggregate annual maturities of the Company’s term loan and 2023 Senior Notes as of December 31, 2016 are as follows (in thousands):
2017 |  | $ | 20,000 |
2018 |  |  | 30,000 |
2019 |  |  | 130,000 |
2020 |  |  | — |
Thereafter |  |  | 750,000 |
The Company’s capital lease obligations consist of the following (in thousands):
|  | December 31, |
|  | 2016 |  |  | 2015 |
Capital lease obligations |  | $ | 3,550 |  |  | $ | 4,299 |
Less: Current portion |  |  | (2,054 | ) |  |  | (1,883 | )
Long-term portion |  | $ | 1,496 |  |  | $ | 2,416 |
The amounts due under the terms of the Company’s capital lease obligations at December 31, 2016 are as follows:
2017 |  | $ | 2,054 |
2018 |  |  | 1,193 |
2019 |  |  | 156 |
2020 |  |  | 84 |
2021 |  |  | 63 |

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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 No definition available. + Details
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- References No definition available. + Details
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