XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Long-Term Debt | 12 Months Ended
--- | ---
Dec. 31, 2016
Debt Disclosure [Abstract] |
Long-term Debt | LONG-TERM DEBT Our long-term debt consisted of the following at December 31, 2015 and 2016 (in thousands):
| December 31, 2015 |  | December 31, 2016
Revolving credit facility, secured, floating rate | $ | 92,600 |  |  | $ | 67,700 |
Term loan, secured, floating rate | 110,937 |  |  | 138,750 |
Acquisition debt | 4,929 |  |  | 12,245 |
Debt issuance costs, net of accumulated amortization of $3,246 and $4,138, respectively | (1,445 | ) |  | (1,270 | )
Less: current portion | (12,012 | ) |  | (13,021 | )
Total long-term debt, net of current portion | $ | 195,009 |  |  | $ | 204,404 |
As of December 31, 2016, we had a $300 million secured bank credit facility with Bank of America, N.A. as Administrative Agent (the “Credit Agreement”), comprised of a $150 million revolving credit facility and a $150 million term loan, (collectively, the “Credit Facility”). The Credit Facility also contains an accordion provision to borrow up to an additional $75 million in revolving loans, subject to certain conditions. The Credit Facility matures on February 9, 2021 and is collateralized by all personal property and funeral home real property in certain states. On February 9, 2016, we entered into a seventh amendment (the “Seventh Amendment”) to our Credit Facility. The Seventh Amendment resulted in, among other things, (i) reducing our LIBOR based variable interest rate 37.5 basis points, (ii) extending the maturity so that the Credit Agreement will mature at the earlier of (a) any date that is 91 days prior to the maturity of any subordinated debt (including the $143.75 million in principal amount of the Convertible Notes, as defined in Note 12 to the Consolidated Financial Statements included herein) or (b) February 9, 2021, (iii) increasing and funding the term loan so that $150 million was outstanding upon the effectiveness of the Seventh Amendment, (iv) reducing the size of the revolver to $150 million, (v) increasing the accordion to $75 million and (vi) updating the amortization payments for the term loan facility so that the borrowings under the term loan facility are subject to amortization payments of (a) $2.81 million at the end of each fiscal quarter beginning with the fiscal quarter ending March 31, 2016 through the fiscal quarter ending December 31, 2017, (b) $3.75 million at the end of each fiscal quarter beginning with the fiscal quarter ending March 31, 2018 through the fiscal quarter ending March 31, 2020 and (c) $4.69 million at the end of each fiscal quarter beginning with the fiscal quarter ending June 30, 2020 through the fiscal quarter ending December 31, 2020. In connection with the Seventh Amendment, we recognized a loss of $0.6 million to write-off the related unamortized debt issuance costs. As of December 31, 2016, we had outstanding borrowings under the revolving credit facility of $67.7 million and approximately $138.8 million was outstanding on the term loan. We have one letter of credit issued and outstanding under the Credit Facility at December 31, 2016. The letter of credit was issued on November 30, 2016 for approximately $2.0 million, bears interest at 2.125% and will expire on November 27, 2017. Outstanding borrowings under the Credit Facility bear interest at either a prime rate or a LIBOR rate, plus an applicable margin based upon the Company’s leverage ratio. As of December 31, 2016, the prime rate margin was equivalent to 1.125% and the LIBOR margin was 2.125%. The weighted average interest rate on the Credit Facility for the year ended December 31, 2016 was 2.8%. We have no material assets or operations independent of our subsidiaries. All assets and operations are held and conducted by subsidiaries, each of which have fully and unconditionally guaranteed our obligations under the Credit Agreement. Additionally, we do not currently have any significant restrictions on our ability to receive dividends or loans from any subsidiary guarantor under the Credit Agreement. We were in compliance with the covenants contained in our Credit Agreement as of December 31, 2015 and 2016. The Credit Agreement contains key ratios that we must comply with including a requirement to maintain a leverage ratio of no more than 3.50 to 1.00 and a covenant to maintain a fixed charge coverage ratio of no less than 1.20 to 1.00. As of December 31, 2016, the leverage ratio was 2.92 to 1.00 and the fixed charge coverage ratio was 2.21 to 1.00. Acquisition debt consists of deferred purchase price and promissory notes payable to sellers. A majority of the deferred purchase price and notes bear interest at 0% and are discounted at imputed interest rates ranging from 7.3% to 10.0%. We have one promissory note that bears interest at a rate of 8.0%. Original maturities range from five to twenty years. The increase in acquisition debt was primarily related to the $8.9 million of deferred purchase price payments for the funeral home businesses acquired in 2016. Beginning January 1, 2016, debt issuance costs are retroactively reflected as a direct deduction from the carrying value of the related debt liability (refer herein to Note 1 to the Consolidated Financial Statements). Amortization of debt issuance costs related to our Credit Facility was approximately $0.5 million and $0.4 million for the years ended December 31, 2015 and 2016, respectively. Debt issuance costs are being amortized over the term of the related debt using the effective interest method for our term loan and the straight line method for our revolving credit facility. The aggregate maturities of our long-term debt for the next five years subsequent to December 31, 2016 and thereafter are as follows (in thousands):
Years ending December 31, |
2017 | $ | 13,021 |
2018 | 16,854 |
2019 | 16,918 |
2020 | 19,042 |
2021 | 148,379 |
2022 and thereafter | 4,481 |
| $ | 218,695 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration