XML 30 R17.htm IDEA: XBRL DOCUMENT

Debt

12 Months Ended

Dec. 31, 2011

8.	*Debt:*

The Company’s debt is comprised of the following components:


(in thousands)	Total
Asset-based revolving credit facility expiring June 30, 2016	$	170,405
Term loan due June 30, 2016		66,354
Industrial revenue bonds due April 1, 2018		5,880
Capital lease		1,577

Total debt		244,216

Less current amount		(9,662	)

Total long-term debt	$	234,554

The Company’s principal payments over the next 5 years and thereafter are detailed in the table below:


(in thousands)	2012		2013		2014		2015		2016		Thereafter
Revolver	$	—	$	—	$	—	$	—	$	170,405	$	—
Term loan		8,750		8,750		8,750		8,750		31,354		—
Industrial revenue bond		755		785		810		840		865		1,825
Other		157		1,420		—		—		—		—

Total principal payments	$	9,662	$	10,955	$	9,560	$	9,590	$	202,624	$	1,825

On July 1, 2011 the Company amended its existing asset-based revolving credit facility. The amended asset-based credit facility (the ABL Credit Facility) provides for borrowings up to $335,000 consisting of a revolving credit line of $265,000 and a $70,000 term loan. Revolver borrowings are limited to the lesser of a borrowing base, comprised of eligible receivables and inventories, or $265,000 in the aggregate. The ABL Credit Facility matures on July 1, 2016.

The ABL Credit Facility requires the Company to comply with various covenants, the most significant of which include: (i) until maturity of the ABL Credit Facility, if any commitments or obligations are outstanding and the Company’s availability is less than the greater of $20,000, 12.5% of the aggregate amount of revolver commitments, or 60% of the principal balance of the term loan then outstanding, then the Company must maintain a ratio of EBITDA minus certain capital expenditures and cash taxes paid to fixed charges of at least 1.10 to 1.00 for the most recent twelve fiscal month period; (ii) limitations on dividend payments; (iii) restrictions on additional indebtedness; and (iv) limitations on investments and joint ventures. The Company has the option to borrow under its revolver based on the agent’s base rate plus a premium ranging from 0.50% to 1.00% or the London Interbank Offered Rate (LIBOR) plus a premium ranging from 2.00% to 2.50%. The interest rate under the term loan is based on the agent’s base rate plus a premium ranging from 1.00% to 1.50% or LIBOR plus a premium ranging from 2.50% to 3.00%.

As of December 31, 2011, $4,840 of bank financing fees was included in “Prepaid expenses and other” and “Other long-term assets” on the accompanying Consolidated Balance Sheet. The financing fees are being amortized over the five-year term of the credit facility.

As of December 31, 2011, the Company was in compliance with its covenants and had approximately $81,900 of availability under the ABL Credit Facility.

As part of the CTI acquisition, the Company assumed $5,880 of Industrial Revenue Bond indebtedness issued through the Stanly County, North Carolina Industrial Revenue and Pollution Control Authority (IRB). The bond matures in April 2018, with the option to provide principal payments annually on April 1st. Interest is payable monthly, with a variable rate that resets weekly. As a security for payment of the bonds, the Company obtained a direct pay letter of credit issued by JPMorgan Chase Bank, N.A. The letter of credit reduces annually by the principal reduction amount. The interest rate at December 31, 2011 was 0.2% for the IRB debt.

Scheduled Debt Maturities, Interest, Debt Carrying Values

The ABL Credit Facility includes a $70,000 term loan that is collateralized by the Company’s real estate. The term loan matures on June 30, 2016. Under the ABL Credit Facility the Company is required to make monthly term loan payments of $729. The interest rate under the term loan is based on the agent’s base rate plus a premium ranging from 1.00% to 1.50% or LIBOR plus a premium ranging from 2.50% to 3.00%.

The overall effective interest rate for all debt, exclusive of deferred financing fees and deferred commitment fees, amounted to 3.1%, 3.9% and 3.7% in 2011, 2010 and 2009, respectively. Interest paid totaled $5,081, $1,672 and $1,928 for the years ended December 31, 2011, 2010 and 2009, respectively. Average total debt outstanding was $165,021, $29,660 and $34,291 in 2011, 2010 and 2009, respectively.

The Company’s CTI operation entered into an interest rate swap agreement to reduce the impact of changes in interest rates on the IRB. At December 31, 2011, the effect of the swap agreement on the bond was to fix the rate at 3.46 percent. The swap agreement matures in April 2018, but is reduced annually by the amount of the optional principal payments on the bond. The Company is exposed to credit loss in the event of nonperformance by the other parties to the interest rate swap agreement. However, the Company does not anticipate nonperformance by the counterparties.

Under the ABL Credit Facility, the Company has the option to enter into 30- to 180- day fixed base rate Euro loans.