LINE OF CREDIT |
12 Months Ended | ||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||
| LINE OF CREDIT |
LINE OF CREDIT
We have a credit agreement with Whitney Bank and JPMorgan Chase Bank N.A. that provides for an $80.0 million revolving credit facility. The credit agreement allows the Company to use up to the full amount of the available borrowing base for letters of credit and up to $20.0 million for general corporate purposes. Our obligations under the credit agreement are secured by substantially all of our assets, other than real property located in the state of Louisiana. On February 29, 2016, we entered into an amendment to our credit agreement. The amendment restates our financial covenants beginning with the quarter ending March 31, 2016 as follows:
The amendment also (i) extends the term of the Credit Facility from February 29, 2016 to January 2, 2017; (ii) increases the commitment fee on undrawn amounts from 0.25% to 0.50% per annum; (iii) increases the letter of credit fee, subject to certain limited exceptions, to 2.0% per annum on undrawn stated amounts under letters of credit issued by the lenders; and (iv) limits the maximum amount of loans outstanding at any time for general corporate purposes to $20.0 million.
At December 31, 2015 we had no outstanding borrowings under the credit agreement, and we had outstanding letters of credit totaling $20.5 million. After consideration of outstanding letters of credit, the availability of the unused portion of the revolving credit agreement (as amended) for additional letters of credit and for general corporate purposes was $59.5 million and $20.0 million, respectively. Amounts borrowed under our the credit agreement bear interest, at our option, at either the prime lending rate established by JPMorgan Chase Bank, N.A. or LIBOR plus 2.0 percent.
We are required to maintain certain financial covenants under the credit agreement. As of December 31, 2015, our financial covenants included (i) a minimum current ratio of 1.25 to 1.0, (ii) a net worth minimum requirement of $254.1 million, (iii) debt to net worth ratio of not greater than 0.5 to 1.0, and (iv) interest coverage ratio of not less than 4.0 to 1.0. As of December 31, 2015, we were in compliance with all of these covenants or had obtained a waiver of noncompliance.
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