Quarterly report pursuant to Section 13 or 15(d)

LONG-TERM DEBT

v3.4.0.3
LONG-TERM DEBT
 3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
LONG-TERM DEBT
LONG-TERM DEBT
 
Long-term debt consisted of the following:
(In thousands)
March 31,
2016
 
(unaudited)
 
Outstanding Principal
 
Unamortized Debt Issuance Costs
 
Long-term
Debt, Net
First Term Loan
$
43,000

 
$
(559
)
 
$
42,441

Revolving Loan
2,000

 
—

 
2,000

Second Term Loan
20,000

 
(465
)
 
19,535

 
65,000

 
(1,024
)
 
63,976

Less current portion
(4,500
)
 
—

 
(4,500
)
 
$
60,500

 
$
(1,024
)
 
$
59,476



(In thousands)
December 31,
2015
 
Outstanding Principal
 
Unamortized Debt Issuance Costs
 
Long-term
Debt, Net
First Term Loan
$
46,000

 
$
(777
)
 
$
45,223

Revolving Loan
2,000

 
—

 
2,000

Second Term Loan
20,000

 
(581
)
 
19,419

 
68,000

 
(1,358
)
 
66,642

Less current portion
(6,000
)
 
—

 
(6,000
)
 
$
62,000

 
$
(1,358
)
 
$
60,642



First and Second Lien Credit Facilities. The First Lien Credit Facility, including the Revolving Loan, and Second Lien Credit Facility are secured by substantially all of our assets. Effective March 11, 2016, we amended the First Lien Credit Facility which extended the maturity date to April 1, 2017. With the exception of FHR-Colorado LLC, which was recently formed to acquire Bronco Billy's, our principal wholly-owned subsidiaries guarantee our obligations under the credit facilities.

First Lien Credit Facility

The First Lien Credit Facility provided for the First Term Loan (including a $10 million construction term loan used to build the hotel at Silver Slipper Casino & Hotel) and the Revolving Loan for up to $5 million. Interest-only payments are due monthly and principal payments of $1.5 million are due quarterly.

As of March 31, 2016, the interest rate was 4.75% (LIBOR or 1.0%, plus a 3.75% margin). We also maintain a prepaid interest rate cap for a notional amount of $14.75 million at a LIBOR cap rate of 1.5%. The interest rate cap terminates on June 29, 2016.

Second Lien Credit Facility

The Second Lien Credit Facility provided for a term loan in an amount up to $20 million and is subordinate to the First Lien Credit Facility. It requires interest-only payments that are due monthly and matures on April 1, 2017.

As of March 31, 2016, the interest rate was 14.25% and varies between 13.25% and 15.25% based upon our leverage ratio (as defined).

The First and Second Lien Credit Facilities contain customary restrictive covenants, including a maximum total leverage ratio, maximum first lien leverage ratio, and a fixed charge coverage ratio. These financial covenant ratios currently are as follows:
First Lien Credit Facility
 
 
Applicable Period
 
Maximum
Total Leverage
Ratio
 
Maximum
First Lien Leverage Ratio
 
Minimum
Fixed Charge Coverage Ratio
December 31, 2015 through and including March 30, 2016
 
6.35x
 
4.35x
 
1.10x
March 31, 2016 through and including June 29, 2016
 
6.15x
 
4.15x
 
1.10x
June 30, 2016 through and including September 29, 2016
 
5.85x
 
4.00x
 
1.10x
September 30, 2016 and thereafter
 
5.50x
 
3.75x
 
1.10x

Second Lien Credit Facility
 
 
Applicable Period
 
Maximum
Total Leverage
Ratio
 
Maximum
First Lien Leverage Ratio
 
Minimum
Fixed Charge Coverage Ratio
December 31, 2015 through and including March 30, 2016
 
6.60x
 
4.60x
 
1.00x
March 31, 2016 through and including June 29, 2016
 
6.40x
 
4.40x
 
1.00x
June 30, 2016 through and including September 29, 2016
 
6.10x
 
4.25x
 
1.00x
September 30, 2016 and thereafter
 
5.75x
 
4.00x
 
1.00x


We were in compliance with our covenants, as amended, as of March 31, 2016. There can be no assurances that we will remain in compliance with all covenants in all future periods.