| LONG-TERM DEBT |
Long-term debt consisted of the following (in thousands):
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March 31, 2015
(Unaudited)
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December 31, 2014
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Long-term debt, net of current portion:
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First Term Loan, maturing June 29, 2016, quarterly payments of $0.25 million beginning June 1, 2015; quarterly payments of $1.25 million beginning October 1, 2015; interest payable monthly at a variable rate which averaged 4.75% for both periods presented
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$ |
43,092 |
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$ |
38,631 |
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Revolving Loan, maturing June 29, 2016, interest payable monthly at a variable rate which averaged 4.75% for both periods presented
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--
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2,000
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Second Term Loan, maturing April 1, 2017, interest payable monthly at 14.25% per annum (13.25% prior to July 18, 2014)
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20,000 |
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20,000 |
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Less current portion
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(3,059 |
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(1,337 |
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$ |
60,033 |
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$ |
59,294 |
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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, and our wholly owned subsidiaries guarantee our obligations under the agreements. As of March 31, 2015, we had drawn $5.6 million of the $10 million term loan under the First Lien Credit Facility. The remaining $4.4 million of funding availability under the term loan will be used to fund a portion of the construction costs of the 129-room hotel addition to the Silver Slipper Casino, which is scheduled to open in phases during the second quarter of 2015.
During March 2015, we paid down $2.0 million previously drawn on our $5.0 million Revolving Loan under the First Lien Credit Facility.
We have elected to pay interest on the First Lien Credit Facility based on the greater of the elected London Interbank Offered Rate (“LIBOR”) rate or 1.0%, plus a margin rate. As of March 31, 2015, the interest rate was 4.75% on the balance outstanding on the First Lien Credit Facility, based on the 1.0% minimum plus a 3.75% margin.
The First and Second Lien Credit Facilities contain customary covenants, including a maximum total leverage ratio, maximum first lien leverage ratio, and a fixed charge coverage ratio, as indicated in the tables below:
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First Lien Credit Facility
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Applicable Period
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Maximum
Total Leverage
Ratio
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Maximum
First Lien Leverage Ratio
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Minimum
Fixed Charge Coverage Ratio
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June 30, 2014 through and including September 29, 2014
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4.75 |
x |
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3.50 |
x |
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1.10 |
x |
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September 30, 2014 through and including December 30, 2014
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5.50 |
x |
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3.50 |
x |
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1.10 |
x |
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December 31, 2014 through and including June 29, 2015
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5.50 |
x |
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4.00 |
x |
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1.10 |
x |
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June 30, 2015 through and including September 29, 2015
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4.75 |
x |
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3.50 |
x |
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1.10 |
x |
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September 30, 2015 through and including December 30, 2015
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4.50 |
x |
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3.25 |
x |
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1.10 |
x |
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December 31, 2015 through and including March 30, 2016
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4.25 |
x |
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3.00 |
x |
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1.10 |
x |
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March 31, 2016 and thereafter
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4.25 |
x |
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3.00 |
x |
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1.10 |
x |
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Second Lien Credit Facility
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Applicable Period
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Maximum
Total Leverage
Ratio
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Maximum
First Lien Leverage Ratio
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Minimum
Fixed Charge Coverage Ratio
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June 30, 2014 through and including September 29, 2014
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5.00 |
x |
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3.75 |
x |
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1.00 |
x |
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September 30, 2014 through and including December 30, 2014
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5.75 |
x |
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3.75 |
x |
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1.00 |
x |
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December 31, 2014 through and including March 30, 2015
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5.75 |
x |
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4.25 |
x |
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1.00 |
x |
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March 31, 2015 through and including June 29, 2015
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5.75 |
x |
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4.25 |
x |
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1.00 |
x |
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June 30, 2015 through and including September 29, 2015
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5.00 |
x |
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3.75 |
x |
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1.00 |
x |
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September 30, 2015 through and including December 30, 2015
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4.75 |
x |
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3.50 |
x |
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1.00 |
x |
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December 31, 2015 through and including March 30, 2016
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4.50 |
x |
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3.25 |
x |
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1.00 |
x |
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March 31, 2016 and thereafter
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4.50 |
x |
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3.25 |
x |
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1.00 |
x |
We were in compliance with our covenants as of March 31, 2015. There can be no assurances that we will remain in compliance with all covenants in all future periods and that, if there is a breach, lenders will waive such breach.
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