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Long-term debt of the Company
consists of $70 million of senior unsecured notes
due in December, 2005, with a fixed interest rate
of 7 percent. The Company has a $100 million revolving
credit agreement which expires on May 31, 2003. No
borrowings were outstanding under this agreement at
December 31, 2000. On January 8, 2001, the Company
borrowed $65 million under the revolving credit agreement
for general operating and working capital requirements.
The loan interest rate, based on the LIBOR rate plus
a premium, is fixed at 6.1 percent through July 8,
2001. Loan repayment timing is subject to future uncertainty,
but the Company expects to repay the loan by the end
of 2001. The revolving credit agreement expires on
May 31, 2003. The note and revolving credit agreements
require the Company to meet certain covenants related
to net worth, leverage, and other provisions. The
Company exceeds the requirements by more than $50
million at December 31, 2000 for the most restrictive
covenant (net worth). The Company was in compliance
with the debt covenants at December 31, 2000. The
Company also has unsecured letters of credit outstanding
of $15.4 million, including its share of ventures.
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