Quarterly report pursuant to Section 13 or 15(d)

Debt

v2.4.0.6
Debt
9 Months Ended
Sep. 30, 2012
Debt [Abstract]  
Debt
6. Debt

In December 2011, we entered into an Amended and Restated Credit Agreement (“Credit Agreement”) to amend our original credit facility. The Credit Agreement provides for a secured revolving credit facility in an aggregate principal amount of up to $150.0 million, subject to a borrowing formula, with a sublimit of $10.0 million for the issuance of letters of credit on our behalf. The Credit Agreement converted our outstanding term loan under the original credit facility into revolving loans. Revolving loans accrue interest at a per annum rate equal to, at the Company’s option, either LIBOR or Wells Fargo’s prime rate (or, if greater, the federal funds rate plus 0.50% or three month LIBOR plus 1.00%), in each case plus a margin ranging from 2.50% to 3.00%, in the case of LIBOR loans, and 0.00% to 0.25% in the case of prime rate loans, based upon the Company’s senior leverage ratio. The interest is due and payable monthly, in arrears, for loans bearing interest at the prime rate and at the end of the applicable 1-, 2-, or 3-month interest period in the case of loans bearing interest as the adjusted LIBOR rate. Principal, together with all accrued and unpaid interest, is due and payable on December 30, 2015. Advances under the credit facility may be voluntarily prepaid, and must be prepaid with the proceeds of certain dispositions, extraordinary receipts and indebtedness and in full upon a change in control.

In September 2012, we entered into an amendment to the Credit Agreement. Under the terms of the amendment, the LIBOR rate margin ranges from 2.00% to 2.50%, based on our senior leverage ratio. All other interest rates and maturity periods remain consistent with the Credit Agreement. Additionally, our capital expenditure limitations were expanded in the amendment.

As of September 30, 2012 and December 31, 2011, we had $25.0 million and $50.3 million outstanding under our revolving line of credit, which approximates its fair value. As of September 30, 2012, $125.0 million was available under our revolving line of credit and $10.0 million was available for the issuance of letters of credit. We had unamortized debt issuance costs of $1.0 million and $1.3 million at September 30, 2012 and December 31, 2011, respectively. As of September 30, 2012, we were in compliance with our debt covenants.