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LONG-TERM DEBT (Block) | 9 Months Ended
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Sep. 30, 2015
Debt Disclosure [Abstract] |
Debt Disclosure Text Block | 4. LONG-TERM DEBT (A) Senior Debt The Credit Facility As of September 30, 2015, the amount outstanding under the term loan component (the “Term B Loan”) of the Company’s senior secured credit facility (the “Credit Facility”) was $247.8 million and the amount outstanding under the revolving credit facility (the “Revolver”) of the Credit Facility was $39.0 million. The amount available under the Revolver, which includes the impact of outstanding letters of credit, was $10.3 million as of September 30, 2015. On November 23, 2011, the Company entered into a credit agreement with a syndicate of lenders for a $425 million Credit Facility that was initially comprised of: (a) a $50 million Revolver that mature s on November 23, 2016; and (b) a $375 million Term B Loan that matures on November 23, 2018. The Term B Loan requires mandatory prepayments equal to 50% of Excess Cash Flow, as defined within the agreement, subject to incremental step-downs de pending on the Consolidated Leverage Ratio. The Excess Cash Flow payment is due in the first quarter of each year for the prior year. An estimate of this payment that is due next year, net of any prepayments made through September 30, 2015, is included under the current portion of long-term debt. The Company expects to fund the payment using cash from operating activities. A s of September 30, 2015, the Company is in compliance with all financial covenants and all other terms of the Credit Facility in all material respects. The Company’s ability to maintain compliance with its covenants under the Credit Facility is highly dependent on its results of operations. Management believes that over the next 12 months the Company can continue to maintain compliance. The Company’s operating cash flow is positive, and management believes t hat it is adequate to fund the Company’s operating needs. T he Company has not been required to rely upon the Revolver, and the Company does not anticipate being required to rely upon the Revolver, to fund its operations. During the quarter, the Company use d the Revolver to fund a portion of the cash needed to close on an acquisition, including working capital, as described under Note 9, Business Combinations. Management believes that cash on hand and cash from operating activities, together with available borrowings under the Revolver, will be sufficient to permit the Company to meet its liquidity requirements over the next 12 months, including its debt repayments. The amount of the Revolver actually avail able to the Company is a function of covenant compliance at the time of borrowing. Failure to comply with the Company’s financial covenants or other terms of its Credit Facility and any subsequent failure to negotiate and obtain any required relief from its lenders could result in a default under the Company’s Credit Facility. Any event of default could have a material adverse effect on the Company’s business and financial condition. In addition, a default under either the Company’s Credit Facility or the indenture governing the Company’s 10.5% senior unsecured notes (the “Senior Notes”) could cause a cross default in the other and result in the acceleration of the maturity of all outstanding debt. The acceleration of the Company’s debt could have a material adverse effect on its business. The Company may seek from time to time to amend its Credit Facility or obtain other funding or additional funding, which may result in higher interest rat es on its debt. (B) Senior Unsecured Debt The Senior Notes O n November 23, 2011, the Company issued $220.0 million of 10.5% unsecured Senior Notes which matu re on December 1, 2019. The Company received net proceeds of $212.7 million, which include d a discount of $2.9 million, and incurred deferred financing costs of $6.1 million. These amounts are amortized over the term under the effective interest rate method. Interest on the Senior Note s is payable semi-annually in arrears on June 1 and December 1 of each year. The Senior Notes may be redeemed at any time on or after December 1, 2015 at a redemption price of 105.25%. The redemption price decreases over time. (C) Net Interest Expense The components of net interest expense are as follows:
|  | Net Interest Expense
|  | Nine Months Ended
|  | September 30,
|  | 2015 |  | 2014
|  | (amounts in thousands)
Interest expense |  | $ | 25,919 |  | $ | 26,076
Amortization of deferred financing costs |  |  | 2,153 |  |  | 3,165
Amortization of original issue discount of senior notes |  |  | 251 |  |  | 226
Total net interest expense |  | $ | 28,323 |  | $ | 29,467
|  | Net Interest Expense
|  | Three Months Ended
|  | September 30,
|  | 2015 |  | 2014
|  |  | (amounts in thousands)
Interest expense |  | $ | 8,915 |  | $ | 8,644
Amortization of deferred financing costs |  |  | 730 |  |  | 1,031
Amortization of original issue discount of senior notes |  |  | 86 |  |  | 77
Total net interest expense |  | $ | 9,731 |  | $ | 9,752

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 + Details
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