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Long-Term Debt | 12 Months Ended
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Dec. 31, 2014
Long-Term Debt | (2) Long-Term Debt Long-term debt of the Company at December 31, 2014 and 2013 is summarized as follows:
|  | 2014 |  |  | 2013 |
Revolving line of credit(a) |  | $ | 99,400 |  |  | $ | 51,550 |
Notes payable |  |  | 126 |  |  |  | 195 |
|  |  | 99,526 |  |  |  | 51,745 |
Less current installments |  |  | (71 | ) |  |  | (69 | )
|  | $ | 99,455 |  |  | $ | 51,676 |
Approximate principal payments on long-term debt at December 31, 2014 are as follows:
2015 |  | $ | 71 |
2016 |  |  | 55 |
2017 |  |  | — |
2018 |  |  | 99,400 |
|  | $ | 99,526 |
a) | On July 11, 2014, AMVAC Chemical Corporation (“AMVAC”), our principal operating subsidiary, as borrower, and affiliates (including the Company), as guarantors and/or borrowers, entered into a First Amendment to Second Amended and Restated Credit Agreement (the “First Amendment”) 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 First Amendment amends the Second Amended and Restated Credit Agreement (“2013 Credit Agreement”) dated as of June 17, 2013. Under the terms of the First Amendment, the Consolidated Funded Debt Ratio was increased for the third and fourth quarters of 2014 and the first quarter of 2015, and, further, borrowers are permitted to pay cash dividends to shareholders during the first and second quarters of 2015, notwithstanding prior levels of net income. The 2013 Credit Agreement, as amended by the First Amendment (the “Credit Agreement”) is a senior secured lending facility with a five year term and consisting of a revolving line of credit of $200 million and an accordion feature for up to $100 million. The Credit Agreement includes both AMVAC CV and AMVAC BV as borrowers. Under the 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, 2014 the Company did not have an interest rate swap in place. At December 31, 2013 and 2012, the Company had in place an interest rate swap, the use of which resulted in a fixed interest rate of 3.39% for the portion of variable rate debt that was covered by the interest rate swap contract. The interest rate swap contract was put in place on March 30, 2011 and expired 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, 2012 |  | $ | 46,000 |  |  | $ | 44,250 |
At December 31, 2013 |  |  | 51,550 |  |  |  | 36,750 |
At December 31, 2014 |  |  | 99,400 |  |  |  | — |
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, 2014). 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, 2014, total indebtedness is $99,526 as compared to $51,745 at December 31, 2013. At December 31, 2014, 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 $26,143 according to the terms of 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 consolidated balance sheets at December 31, 2014 and December 31, 2013. These are summarized in the following table:
Indebtedness |  | December 31, 2014 |  |  | December 31, 2013 |
$000’s |  | Long-term |  |  | Short-term |  |  | Total |  |  | Long-term |  |  | Short-term |  |  | Total |
Revolving line of credit |  | $ | 99,400 |  |  | $ | — |  |  | $ | 99,400 |  |  | $ | 51,550 |  |  | $ | — |  |  | $ | 51,550 |
Notes payable |  |  | 55 |  |  |  | 71 |  |  |  | 126 |  |  |  | 126 |  |  |  | 69 |  |  |  | 195 |
Total indebtedness |  | $ | 99,455 |  |  | $ | 71 |  |  | $ | 99,526 |  |  | $ | 51,676 |  |  | $ | 69 |  |  | $ | 51,745 |
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, 2014 and 2013 was $94,899 and $29,284, respectively. The weighted average interest rate on the revolving credit line during the years ended December 31, 2014 and 2013 was 2.5% and 3.1% respectively.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 + Details
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