Cash America 2015 Annual Report Download - page 109

11. Long-Term Debt
TheCompany’slong-termdebtinstrumentsandbalancesoutstandingasofDecember31,2015and2014,
were as follows (dollars in thousands):
AsofDecember31,
2015 2014
Line of credit due 2018 $27,108 $—
5.75% senior unsecured notes due 2018 184,450 196,470
Total long-term debt $211,558 $196,470
Line of Credit
The Company has a credit agreement with a syndicate of financial institutions as lenders that was entered
intoonMarch30,2011 and later amended (the “Credit Agreement”). The Credit Agreement, as amended, provides
for a line of credit in an aggregate principal amount of up to $280.0 million permitting revolving credit loans (the
“Line of Credit”). The Credit Agreement is guaranteed by the Company’s domestic subsidiaries and matures on
March 31, 2018. The Credit Agreement contains an accordion feature whereby the Line of Credit may be increased
up to an additional $100.0 million with the consent of any increasing lenders. In addition to previous amendments,
the Credit Agreement was amended on October 6, 2015 to remove the multi-currency subfacility, which had
previously given the Company the ability to borrow up to $50.0 million in specified foreign currencies. The removal
of the multi-currency subfacility did not decrease the total amount of borrowing capacity under the Credit
Agreement. In addition, the amendment adjusted two financial covenants, including a reduction in the minimum net
worth covenant and an increase in the maximum restricted payment covenant.
The Credit Agreement was also amended in December 2014, and the amendment provided (i) that any
acceleration or demand for acceleration, repayment, redemption or repurchase of or any default or event of default
under the $300.0 million in aggregate principal amount of 5.75% Senior Notes due 2018 (the “2018 Senior Notes”)
or the Indenture dated as of May 15, 2013 that governs the 2018 Senior Notes (the “2018 Senior Notes Indenture”),
among the Company, the guarantors party thereto and Wilmington Savings Fund Society, FSB, as trustee (the
“Trustee”) proximately caused by the Enova Spin-off (“Other Debt Action”) will not result in a default or event of
default under the Credit Agreement. In addition, any such Other Debt Action will not be deemed an event that could
reasonably be expected to give rise to or have a material adverse effect under the Credit Agreement, and (ii) until
such time as the Company notifies the Administrative Agent for the Credit Agreement that the provision described
in subsection (i) above is no longer required, the Company is subject to a minimum level of liquidity as defined in
the amendment.
Interest on the Line of Credit is charged, at the Company’s option, at either the London Interbank Offered
Rate (“LIBOR”) for one week or one-, two-, three- or six-month periods, as selected by the Company, plus a margin
varying from 2.00% to 3.25% or at the agent’s base rate plus a margin varying from 0.50% to 1.75%. The margin
for the Line of Credit is dependent on the Company’s cash flow leverage ratios as defined in the Credit Agreement.
The Company also pays a fee on the unused portion of the Line of Credit ranging from 0.25% to 0.50% (0.38% as
ofDecember31,2015)basedontheCompany’scashflowleverageratios.The weighted average interest rate
(including margin)ontheLineofCreditwas3.48%asofDecember31,2015.
TheCompanyhad$27.1millionofborrowingsoutstandingundertheLineofCreditasofDecember31,
2015, which consisted of two pricing tranches with maturity dates ranging from five to eight days. As of
December31,2014,theCompanyhadnoborrowingsoutstandingundertheLineofCredit.The Company routinely
refinances such borrowings pursuant to the terms of its Line of Credit. Therefore, these borrowings are considered
part of the applicable Line of Credit and are classified as long-term debt.
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
105