XML 37 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Debt And Credit Agreements
 12 Months Ended
Dec. 31, 2011
Debt And Credit Agreements [Abstract]  
Debt And Credit Agreements

10 DEBT AND CREDIT AGREEMENTS

     On June 21, 2010, we entered into a $300 million four-year, unsecured revolving credit facility (the "Credit Agreement"), with an option to increase that amount by an additional $75 million. The Credit Agreement replaces our previous five-year, unsecured revolving credit facility that was due to expire on December 15, 2010. There were no outstanding borrowings under the previous revolving credit facility when it was replaced.

     Borrowings under the Credit Agreement bear an interest rate of LIBOR plus a credit spread and commitment fees charged on the unused amount under the Credit Agreement at various indebtedness-to-adjusted-EBITDA levels as follows:

Pricing Under Revolving Credit Agreement (Basis Points)

  Indebtedness-to-Adjusted   Credit Spread Commitment
  EBITDA Ratio   Over LIBOR Fee
> 2.0x but <= 3.0x   250 40
> 1.0x but <=2.0x   225 35
<= 1.0 x 200 30

 

     At December 31, 2011, the interest cost on debt borrowed under the Credit Agreement was priced at one-month LIBOR plus the applicable credit spread of 225 basis points.

The most restrictive covenants in the Credit Agreement include:

  • Maximum aggregate dividends over the term of the Credit Agreement of $100 million plus, beginning with the fiscal quarter ending March 31, 2010, 50% of net income;
  • Minimum shareholders' equity at any point during the term of the Credit Agreement of at least $300 million increased on a cumulative basis at the end of each fiscal quarter, beginning with the fiscal quarter ending March 31, 2010, by an amount equal to 50% of net income (to the extent positive);
  • Maximum indebtedness-to-adjusted EBITDA of 3.0x; and
  • Minimum adjusted EBIT-to-interest expense of 2.5x.

     At December 31, 2011, based upon the most restrictive covenants within the Credit Agreement, available credit under the Credit Agreement was approximately $162 million. Total debt due and outstanding at December 31, 2011 is summarized below:

Debt Due and Outstanding at December 31, 2011
(In Thousands)

Year   Credit       Total Debt
Due   Agreement   Other   Due
2012 $ - $ - $ -
2013   -   -   -
2014   125,000   -   125,000
2015   -   -   -
2016   -   -   -
Total $ 125,000 $ - $ 125,000

 

     We believe we were in compliance with all of our debt covenants as of December 31, 2011. Noncompliance with any of the debt covenants may have a material adverse effect on financial condition or liquidity in the event such noncompliance cannot be cured or should we be unable to obtain a waiver from the lenders. Renegotiation of the covenant through an amendment to the Credit Agreement may effectively cure the noncompliance, but may have an effect on financial condition or liquidity depending upon how the covenant is renegotiated.