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LONG-TERM DEBT (Block) | 6 Months Ended
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Jun. 30, 2016
Debt Disclosure [Abstract] |
Debt Disclosure Text Block | 4. LONG-TERM DEBT (A) Senior Debt The Credit Facility As of June 30, 2016, the amount outstanding under the term loan component (the “Term B Loan”) of the Company’s senior secured credit facility (the “Credit Facility”) was $230.0 million and the amount outstanding under the revolving credit facility (the “Revolver”) of the Credit Facility was $17.0 million. The amount available under the Revolver, which includes the impact of outstanding letters of credit, was $22.3 million as of June 30, 2016. 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 (reduced to $40 million in December 2015) that matures on November 23, 2016; and (b) a $375 million Term B Loan that matures on November 23, 2018. Long-term debt, which excludes deferred financing expense on the Revolver, was comprised of the following:
|  |  |  | Long-Term Debt
|  |  |  | June 30, |  | December31,
|  |  |  | 2016 |  | 2015
|  |  |  |  | (amounts in thousands)
| Credit Facility |  |  |  |  |  |
|  | Revolver, due November 23, 2016 |  | $ | 17,000 |  | $ | 26,000
|  | Term B Loan, due November 23, 2018 |  |  | 230,000 |  |  | 242,750
|  |  |  |  | 247,000 |  |  | 268,750
| Senior Notes |  |  |  |  |  |
|  | 10.5% senior unsecured notes, due December 1, 2019 |  |  | 220,000 |  |  | 220,000
|  | Unamortized original issue discount |  |  | (1,547) |  |  | (1,731)
|  |  |  |  | 218,453 |  |  | 218,269
| Other Debt |  |  |  |  |
|  | Capital lease and other |  |  | 94 |  |  | -
Total debt before deferred financing costs |  |  | 465,547 |  |  | 487,019
| Current amount of long-term debt |  |  | (29,150) |  |  | (31,832)
| Deferred financing costs (excluding Revolver) |  |  | (5,278) |  |  | (6,463)
Total long-term debt, net of current debt |  | $ | 431,119 |  | $ | 448,724
Outstanding standby letter of credit |  | $ | 670 |  | $ | 670
The Term B Loan requires mandatory prepayments equal to a percentage of Excess Cash Flow, which is defined within the agreement and is subject to incremental step-downs depending on the Consolidated Leverage Ratio. The payment, which is currently estimated at 25% of Excess Cash Flow, is due in the first quarter of each year for the prior year and is included under the current portion of long-term debt, net of any prepayments made through June 30, 2016. The Company expects to fund the payment using cash from operating activities. A s of June 30, 2016, 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 that it is adequate to fund the Company’s operating needs. Management believes that the Company can meet its liquidity requirements over the next 12 months, including its debt repayments. 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 rates on its debt. As of June 30, 2016, the Company’s Consolidated Leverage Ratio was 3.9 times versus a covenant limit of 4.5 times and the Consolidated Interest Coverage Ratio was 3.4 times versus a covenant minimum of 2.0 times. (B) Senior Unsecured Debt The Senior Notes The Senior Notes may be redeemed at any time at a redemption price of 105.25% of the principal amount plus accrued interest. The redemption price decreases December 1, 2016 and December 1, 2017 to 102.625% and 100.0%, respectively. O n November 23, 2011, the Company issued $220.0 million of 10.5% unsecured Senior Notes which mature on December 1, 2019. The Company received net proceeds of $212.7 million, which included 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 Notes is payable semi-annually in arrears on June 1 and December 1 of each year. (C) Net Interest Expense The components of net interest expense are as follows:
|  | Net Interest Expense
|  | Six Months Ended
|  | June 30,
|  | 2016 |  | 2015
|  | (amounts in thousands)
Interest expense |  | $ | 17,057 |  | $ | 17,004
Amortization of deferred financing costs |  |  | 1,319 |  |  | 1,423
Amortization of original issue discount of senior notes |  |  | 184 |  |  | 165
Interest income and other investment income |  |  | (21) |  |  | -
Total net interest expense |  | $ | 18,539 |  | $ | 18,592
|  | Net Interest Expense
|  | Three Months Ended
|  | June 30,
|  | 2016 |  | 2015
|  |  | (amounts in thousands)
Interest expense |  | $ | 8,435 |  | $ | 8,513
Amortization of deferred financing costs |  |  | 631 |  |  | 716
Amortization of original issue discount of senior notes |  |  | 93 |  |  | 84
Interest income and other investment income |  |  | (12) |  |  | -
Total net interest expense |  | $ | 9,147 |  | $ | 9,313

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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 + Details
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