(2) Long-Term Debt

Long-term debt of the Company at December 31, 2013 and 2012 is summarized as follows:


	2013			2012
Term loan		—			46,000
Revolving line of credit(a)		51,550			—
Notes payable		195			6,443

		51,745			52,443
Less current installments		(69	)		(16,247	)

	$	51,676		$	36,196

Approximate principal payments on long-term debt at December 31, 2013 are as follows:


2014	$	69
2015		71
2016		55
2017		—
2018		51,550

	$	51,745

(a)

On June 17, 2013, AMVAC Chemical Corporation (“AMVAC”), our principal operating subsidiary, as borrower, and affiliates (including the Company), as guarantors and/or borrowers, entered into a Second Amended and Restated Credit Agreement (the “New Credit Agreement”) with a group of commercial lenders led by Bank of the West (AMVAC’s primary bank) as agent, swing line lender and L/C issuer. The New Credit Agreement supersedes the Amended and Restated Credit Agreement (“First Amendment”) dated as of January 10, 2011. The New Credit Agreement is a senior secured lending facility with a five year term and consists of a revolving line of credit of $200 million and an accordion feature for up to $100 million. The new facility includes both AMVAC CV and AMVAC BV (both Dutch subsidiaries) as borrowers. In connection with AMVAC’s entering into the New Credit Agreement, all outstanding indebtedness under the First Amendment was rolled over into the New Credit Agreement, and term loans were converted into revolving debt. Under the New Credit Agreement, revolving loans bear interest at a variable rate based, at borrower’s election with proper notice, on either (i) LIBOR plus the “Applicable Rate” which is based upon the Consolidated Funded Debt Ratio (“Eurocurrency Rate Loan”) or (ii) the greater of (x) the Prime Rate, (y) the Federal Funds Rate plus 0.5%, and (z) the Daily One-Month LIBOR Rate plus 1.00%, plus, in the case of (x), (y) or (z) the Applicable Rate (“Alternate Base Rate Loan”). Interest payments for Eurocurrency Rate Loans are payable on the last day of each interest period (either one, two, three or six months, as selected by the borrower) and the maturity date, while interest payments for Alternate Base Rate Loans are payable on the last business day of each month and the maturity date. The senior secured revolving line of credit matures on June 17, 2018.

The Company uses a pay fixed, receive 1M LIBOR (London Interbank Offered Rate) interest rate swap to manage the interest expense generated by variable rate debt. At December 31, 2013, 2012 and 2011, the Company had in place an interest rate swap, the use of which results in a fixed interest rate of 3.39% for the portion of variable rate debt that is covered by the interest rate swap contract. The current interest rate swap contract was put in place on March 30, 2011 and terminates on December 31, 2014. The table below shows the amount of outstanding debt and the related notional amount on the interest rate swap contract at each of the balance sheet dates:


	Outstanding Variable Rate Debt		Notional Amount on Interest Rate Swap
At December 31, 2011	$	54,000	$	45,000
At December 31, 2012		46,000		44,250
At December 31, 2013		51,550		36,750

Under the New Credit Agreement, the Company has three key covenants (with which it was in compliance throughout the year and as of December 31, 2013). The covenants are as follows: (1) the Company must maintain its borrowings below a certain consolidated funded debt ratio, (2) the Company has a limitation on its annual spending on the acquisition of fixed asset capital additions, and (3) the Company must maintain a certain consolidated fixed charge coverage ratio.

At December 31, 2013 total indebtedness is $51,745 as compared to $52,443 at December 31, 2012. At December 31, 2013, based on its performance against the most restrictive covenants listed above, the Company has the capacity to increase its borrowings by up to the maximum limit of $148,450 under the Credit Agreement.

Substantially all of the Company’s assets are pledged as collateral under the Credit Agreement.

The Company’s main bank is Bank of the West, a wholly-owned subsidiary of the French bank, BNP Paribas. Bank of the West has been the Company’s bank for more than 30 years. Bank of the West is the syndication manager for the Company’s loans and acts as the counterparty on the Company’s derivative transactions.

The Company has various loans in place that together constitute the short-term and long-term loan balances shown in the balance sheet at December 31, 2013 and December 31, 2012. These are summarized in the following table:


Indebtedness	December 31, 2013						December 31, 2012
$000’s	Long-term		Short-term		Total		Long-term		Short-term		Total
Term loan	$	—	$	—	$	—	$	36,000	$	10,000	$	46,000
Revolving line of credit		51,550		—		51,550		—		—		—
Notes payable		126		69		195		196		6,247		6,443

Total indebtedness	$	51,676	$	69	$	51,745	$	36,196	$	16,247	$	52,443

On June 17, 2013, all outstanding term loans were converted into revolving debt. The average amount outstanding on the term loan during the years ended December 31, 2013 and 2012 was $23,318 and $50,957, respectively. The weighted average interest rate on the term loan during the years ended December 31, 2013 and 2012 was 3.8% and 3.7%, respectively.

The average amount outstanding on the senior secured revolving line of credit during the years ended December 31, 2013 and 2012 was $29,284 and $0. The weighted average interest rate on the revolving credit line during the years ended December 31, 2013 and 2012 was 3.1% and 0.0% respectively.