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Debt

6 Months Ended

Jun. 30, 2019

Debt [Abstract]

(7) Debt

Debt consisted of the following at June 30, 2019 and December 31, 2018:


		June 30,			December 31,			Interest rates at
		2019			2018			June 30, 2019		Maturity
Revolving Credit Facility
Credit Facility		$	103,500		$	96,000		3.28% - 3.45%		June 2024

Debt
PST short-term obligations			322			989		6.00%		December 2019
PST long-term notes			1,279			1,527		7.00%		November 2021
Total debt			1,601			2,516
Less: current portion			(869)			(1,533)
Total long-term debt, net		$	732		$	983

Revolving Credit Facility

On September 12, 2014, the Company entered into a Third Amended and Restated Credit Agreement (the “Amended Agreement”). The Amended Agreement provided for a $300,000 revolving credit facility, which replaced the Company’s $100,000 asset-based credit facility and included a letter of credit subfacility, swing line subfacility and multicurrency subfacility.

On June 5, 2019, the Company entered into the Fourth Amended and Restated Credit Agreement (the “2019 Credit Facility”). The 2019 Credit Facility provides for a $400,000 senior secured revolving credit facility and it replaced and superseded the Amended Agreement. The 2019 Credit Facility has an accordion feature which allows the Company to increase the availability by up to $150,000 upon the satisfaction of certain conditions and includes a letter of credit subfacility, swing line subfacility and multicurrency subfacility. The 2019 Credit Facility has a termination date of June 5, 2024. In the second quarter of 2019, the Company capitalized $1,183 of deferred financing costs as a result of entering into the 2019 Credit Facility. In connection with the 2019 Credit Facility, the Company wrote off a portion of the previously recorded deferred financing costs of $275 in interest expense, net during the three months ended June 30, 2019. Borrowings under the 2019 Credit Facility bear interest at either the Base Rate or the LIBOR rate, at the Company’s option, plus the applicable margin as set forth in the 2019 Credit Facility. The 2019 Credit Facility contains certain financial covenants that require the Company to maintain less than a maximum leverage ratio and more than a minimum interest coverage ratio.

The 2019 Credit Facility contains customary affirmative covenants and representations. The 2019 Credit Facility also contains customary negative covenants, which, among other things, are subject to certain exceptions, including restrictions on (i) indebtedness, (ii) liens, (iii) liquidations, mergers, consolidations and acquisitions, (iv) disposition of assets or subsidiaries, (v) affiliate transactions, (vi) creation or ownership of certain subsidiaries, partnerships and joint ventures, (vii) continuation of or change in business, (viii) restricted payments, (ix) prepayment of subordinated and junior lien indebtedness, (x) restrictions in agreements on dividends, intercompany loans and granting liens on the collateral, (xi) loans and investments, (xii) sale and leaseback transactions, (xiii) changes in organizational documents and fiscal year and (xiv) transactions with respect to bonding subsidiaries. The 2019 Credit Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) non-payment of principal and non-payment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross default of other debt, final judgments and other adverse orders in excess of $30,000, (v) any loan document shall cease to be a legal, valid and binding agreement, (vi) certain uninsured losses or proceedings against assets with a value in excess of $30,000, (vii) ERISA events, (viii) a change of control, or (ix) bankruptcy or insolvency proceedings.

Borrowings outstanding on the 2019 Credit Facility and the Amended Agreement as applicable, were $103,500 and $96,000 at June 30, 2019 and December 31, 2018, respectively.

The Company was in compliance with all credit facility covenants at June 30, 2019 and December 31, 2018.

The Company also has outstanding letters of credit of $1,815 at both June 30, 2019 and December 31, 2018.

Debt

PST maintains short-term obligations and long-term notes used for working capital purposes which have fixed or variable interest rates. The weighted-average interest rates of short term and long-term debt of PST at June 30, 2019 was 6.0% and 7.0%. Depending on the specific note, interest is payable either monthly or annually. Principal repayments on PST debt at June 30, 2019 are as follows: $869 from July 2019 through June 2020, $258 from July 2020 through December 2020 and $474 in 2021.

The Company’s wholly-owned subsidiary located in Stockholm, Sweden, has an overdraft credit line which allows overdrafts on the subsidiary’s bank account up to a maximum level of 20,000 Swedish krona, or $2,155 and $2,259, at June 30, 2019 and December 31, 2018, respectively. At June 30, 2019 and December 31, 2018, there was no balance outstanding on this overdraft credit line.

The Company’s wholly-owned subsidiary located in Suzhou, China, has two credit lines which allow up to a maximum borrowing level of 60,000 Chinese yuan, or $8,740 at June 30, 2019. At June 30, 2019 and December 31, 2018, there was no balance outstanding on these credit lines.

The Company was in compliance with all debt covenants at June 30, 2019 and December 31, 2018.