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Note 9 - Borrowings
 3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Debt Disclosure [Text Block]

9)

BORROWINGS

 

On March 30, 2020, FutureFuel, with FutureFuel Chemical as the borrower and certain of FutureFuel’s other subsidiaries as guarantors, amended and restated its credit agreement (the “Credit Agreement”) originally entered into on April 16, 2015 (as amended, the “Prior Credit Agreement”) with the lenders party, Regions Bank as administrative agent and collateral agent, and PNC Bank, N.A., as syndication agent. The Credit Agreement consists of a five-year revolving credit facility in a dollar amount of up to $100,000, which includes a sublimit of $30,000 for letters of credit and $15,000 for swingline loans (collectively, the “Credit Facility”). The credit facility expires on March 30, 2025. The primary amendments from the Prior Credit Agreement were a reduction in the facility by $65,000, a reduction in the facility’s applicable interest rate by 0.25%, a reduction in the commitment fee, and elimination of the minimum consolidated fixed charge coverage ratio.

 

The interest rate floats at the following margins over LIBOR or base rate based upon the leverage ratio from time to time:

 

Consolidated Leverage Ratio

 

Adjusted LIBOR Rate Loans and

Letter of Credit Fee

  

Base Rate Loans

  

Commitment Fee

 

< 1.00:1.0

 

 

  1.00%   0.00%   0.15% 

≥ 1.00:1.0

And

< 1.50:1.0

  1.25%   0.25%   0.15% 

≥ 1.50:1.0

And

< 2.00:1.0

  1.50%   0.50%   0.20% 

≥ 2.00:1.0

And

< 2.50:1.0

  1.75%   0.75%   0.20% 

≥ 2.50:1.0

 

 

  2.00%   1.00%   0.25% 

 

The terms of the Credit Facility contain certain negative covenants and conditions including a maximum consolidated leverage ratio and a consolidated minimum interest coverage ratio.

 

There were no borrowings under the Credit Agreement at March 31, 2022 or December 31, 2021.