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Note 7 - Long-term Debt

12 Months Ended

Dec. 31, 2023

7.	LONG-TERM DEBT

Long-term debt at December 31, consists of the following:

	2023			2022
	(in thousands)
Line of credit with a bank—due July 1, 2026, and collateralized by accounts receivable (1)		-			-
Equipment financing (2)		219,033			216,875
Real estate financing (3)		42,676			47,406
Total long-term debt		261,709			264,281
Less current maturities		(57,645	)		(58,815	)

Long-term debt—net of current maturities	$	204,064		$	205,466

(1)

Line of credit agreement with a bank provides for maximum borrowings of $60.0 million and contains certain restrictive covenants that must be maintained by the Company on a consolidated basis. Borrowings on the line of credit are at an interest rate of Term SOFR as of the first day of the month plus 1.35%, (6.66% at December 31, 2023) and are secured by our trade accounts receivable. An “unused fee” of 0.25% is charged if average daily borrowings are less than $18.0 million in a given month. Monthly payments of interest are required under this agreement. Also, under the terms of the agreement the Company must maintain a debt to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, excluding gains/losses on equity securities and extraordinary items) ratio of less than 4.00:1. The Company was in compliance with all provisions under this agreement throughout 2023. At December 31, 2023, outstanding advances on the line were approximately $0.1 million, including letters of credit totaling $0.1 million, with availability to borrow $59.9 million. At December 31, 2022, outstanding advances on the line were approximately $0.4 million, including letters of credit totaling $0.3 million.

(2)

Equipment financings consist of installment obligations for revenue equipment purchases, payable in various monthly installments with various maturity dates through March 2028, at a weighted average interest rate of 4.20% as of December 31, 2023 and collateralized by revenue equipment.

(3)

Real estate financing consisting of an installment obligation for the purchase of real estate in Laredo, TX, payable in 120 installments at an interest rate of 3.02% and maturing in August 2030, and an installment obligation for the financing of various company-owned terminals and office buildings payable in 120 installments at an interest rate of 3.62% and maturing in March 2032. These obligations are collateralized by the underlying real estate and any rental income generated by the underlying real estate.

The Company has provided a letter of credit to a third party totaling approximately $100,000 and $310,000 at December 31, 2023 and December 31, 2022, respectively. The letter is held by the third party to assist such party in collection of any amounts due by the Company should the Company default in its commitments to the party.

Scheduled annual maturities on long-term debt outstanding at December 31, 2023, are:

2024	$	57,645
2025		61,848
2026		43,588
2027		41,672
2028		25,914
Thereafter		31,042

Total	$	261,709