8. LINE OF CREDIT

The Company has a credit agreement with Whitney Bank and JPMorgan Chase Bank N.A. that provides the Company with an $80 million revolving credit facility. The credit agreement also allows the Company to use up to the full amount of the available borrowing base for letters of credit. The credit facility matures on December 31, 2014. We intend to renew our credit facility prior to its expiration. Our revolving line of credit is secured by substantially all of our assets, other than real property located in the state of Louisiana. Amounts borrowed under our revolving line of credit bear interest, at our option, at either the prime lending rate established by JPMorgan Chase Bank, N.A. or LIBOR plus 1.5 percent. We pay a fee on a quarterly basis of one-fourth of one percent per annum on the weighted-average unused portion of our revolving line of credit

On September 12, 2013, we entered into an amendment to our credit facility under which two new guarantors, both of which are subsidiaries of the Company, agreed to guaranty the Company’s obligations under the credit facility, and grant a security interest over certain collateral to secure such obligations. The amendment also released any liens in favor of the lenders affecting real property of the Company, and its subsidiaries located in the state of Louisiana, and grants the lenders a security interest in all of the accounts of the Company and its subsidiaries. Further, the Company agreed to cause all subsidiaries subsequently formed or acquired, subject to certain exceptions, to execute both a guaranty and a security agreement with respect to Gulf Island’s obligations under the credit facility.

At March 7, 2014 we had no amounts borrowed under our revolving line of credit, and we had outstanding letters of credit totaling $51.5 million, which reduced the unused portion of our revolving line of credit to $28.5 million. We are required to maintain certain financial covenants, including a minimum current ratio of 1.25 to 1.0, a net worth minimum requirement of $246.4 million, debt to net worth ratio of 0.5 to 1.0, and earnings before interest, taxes, depreciation and amortization (EBITDA) to interest expense ratio of 4.0 to 1.0. As of December 31, 2013, we were in compliance with these covenants.