FINANCING ARRANGEMENTS |
6 Months Ended | ||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||
| FINANCING ARRANGEMENTS | |||||||||||||||||||||||||
| FINANCING ARRANGEMENTS |
NOTE M— FINANCING ARRANGEMENTS $150.0 million Wells Fargo Senior Secured Revolving Credit Facility On July 20, 2018, the Company and other subsidiary borrowers signatory thereto entered into a secured amended and restated revolving credit agreement (as amended, the “Revolving Credit Agreement”), which provides for a $150.0 million aggregate amount of revolver commitments subject to borrowing base limitations. Effective July 25, 2023, the Company amended the Revolving Credit Agreement to increase the maximum commitments thereunder to $180.0 million aggregate amount, expandable to $200.0 million, subject to borrowing base limitations, and to extend the maturity date to July 24, 2028. As of June 30, 2023, there was no outstanding balance under the Revolving Credit Agreement and the Company was in compliance with the debt covenants under the Revolving Credit Agreement. $10.0 million Synovus Property and Equipment Revolving Term Loan On June 30, 2023, the Company entered into a Property and Equipment Revolving Term Loan (“Equipment Loan”) with a total advance commitment of $10.0 million for the purpose of financing capital expenditures on property and equipment. Once the total advance commitment is reached or commencing on June 30, 2024, whichever comes first, this facility will become a term loan with a maturity date of June 30, 2027. This loan is collateralized by the property and equipment it finances and requires interest only payment until converted to a term loan, at which point, principal and interest payments will be required. The Equipment Loan bears interest at a rate per annum equal to one-month Secured Overnight Financing Rate (“SOFR”) + 3.50%, which will be adjusted monthly. The effective rate on this facility as of June 30, 2023 was 8.60%. The Equipment Loan is subject to ongoing compliance by the Company in the form of various customary affirmative and negative covenants, as well as certain financial covenants. The Company was in compliance with these covenants as of June 30, 2023. During the six months ended June 30, 2023 the Company borrowed $8.6 million under this facility, which remained outstanding as of June 30, 2023. There was no interest expense on the Equipment Loan for the three and six months ended June 30, 2023. The schedule of payments on the Equipment Loan as of June 30, 2023 is as follows (in thousand):
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