World Fuel Services 2004 Annual Report Download - page 68

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As of December 31, 2004, our outstanding borrowings under the revolving credit facility totaled $50.0 million and our
issued letters of credit totaled $28.4 million. Our weighted average daily outstanding borrowings during the years ended
December 31, 2004 and 2003 were $26.7 million and $5.8 million, respectively.
The Credit Agreement imposes certain operating and financial restrictions on us. Our failure to comply with these
restrictions, including meeting certain financial ratios, could result in an event of default. An event of default, if not cured or
waived, would permit acceleration of any outstanding indebtedness under the Credit Agreement, and impair our ability to
receive advances and issue letters of credit, and thus have a material adverse effect on our ability to fund operations.
As a result of the restatements described in Note 2, we were not in compliance with certain financial covenants set forth in
our credit facility agreement as of June 30, 2004 and September 30, 2004. We obtained a waiver of the non-compliance from
LaSalle Bank National Association, as Administrative Agent, on March 16, 2005. Currently, we are in compliance with all
covenants under the Credit Agreement.
In April 2004, we obtained a separate $25.0 million credit line for the issuance of letters of credit from one of the banks
participating in our revolving credit facility. Letters of credit issued under this credit line are subject to fees at market rates
payable semiannually and at maturity in arrears. This credit line is renewable on an annual basis. As of December 31, 2004,
we had outstanding letters of credit of $8.6 million under this credit line, in addition to the letters of credit outstanding under
our revolving credit facility.
Substantially all of the letters of credit issued under the $150.0 million syndicated revolving credit facility and the $25.0
million credit line were provided to suppliers in the normal course of business, and expire within one year from their issuance.
Expired letters of credit are renewed as needed.
Our debt consisted of the following (in thousands):
As of December 31,
2004 2003
Borrowings under syndicated revolving credit facility 50,000$ -$
Promissory notes issued in connection with acquired business:
Non-interest bearing promissory note of $2.5 million, payable
annually through January 2006, net of unamortized imputed
discount (at 9%) of $33 and $112 at December 31, 2004 and
2003, respectively 467 1,388
Non-interest bearing promissory note of $3.3 million, payable
annually through January 2005, net of unamortized imputed
discount (at 5%) of $152 at December 31, 2003 1,100 2,148
Total debt 51,567$ 3,536$
Short-term debt 1,100$ 1,600$
Long-term debt 50,467$ 1,936$
As of December 31, 2004, the aggregate annual maturities of debt, net of unamortized imputed discount, are as follows (in
thousands):
For the Year ending December 31,
2005 $ 1,100
2006 50,467
$ 51,567
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