SUBSEQUENT EVENT |
6 Months Ended |
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Sep. 30, 2016 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENT |
SUBSEQUENT EVENT
On October 21, 2016 (“closing date”), we entered into a secured credit facility (“credit facility”) which consisted of a revolving loan and credit agreement (“revolving loan”) and a term loan and credit agreement (“term loan”). The credit facility allows for maximum borrowings of up to $170 million, including $100 million under the revolving loan, $50 million under the term loan, and $20 million under a delayed draw term loan (“DDTL”). Borrowings under the DDTL are restricted to only be used to redeem our 4.50% convertible subordinated notes (“4.50% notes”), and available from the closing date through December 31, 2017. The revolving loan and term loan mature on October 21, 2021, subject to conversion or repayment of our 4.50% notes. Borrowings under the term loan bear interest at rates ranging from 7.00% to 8.25%, which is adjusted quarterly, and is dependent on applicable senior net leverage ratio parameters. Borrowings under the revolving loan will typically bear interest at LIBOR plus a margin that fluctuates from 1.50% to 2.50% depending upon availability under the facility.
We borrowed $76.0 million which included proceeds from the term loan and funds drawn on the revolving loan at closing. These funds were used to pay off the outstanding balance on our Wells Fargo credit agreement and letters of credit in the amount of $61.4 million, $10.0 million to fund the restricted reserve requirements for the revolving loan of $20.0 million and pay transaction fees and other expenses totaling $4.6 million.
Fees incurred under the credit facility include debt issuance costs and loan commitment fees. Debt issuance costs will be included as an offset to long-term debt in future reporting periods and will be amortized to interest expense over the life of the credit facility using the effective interest method. Loan commitment fees will be recorded as an asset and amortized ratably over the term of the underlying agreement.
The credit facility contains customary covenants, customary events of default and financial covenants, including fixed charge coverage ratio, senior net leverage ratio and total leverage ratio as defined within the credit facility. The credit facility is collateralized by substantially all of our assets.
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