The Company’s long-term obligations were as follows:

 

 

           Unamortized discount on debt as of includes of deferred financing costs related to the Company’s term loans and revolving loan. As described below, in conjunction with the Matrix Transaction, the Company permanently repaid the outstanding term loans and reduced the capacity under the revolving loan. As of there were borrowings outstanding under the revolving loan, and thus the deferred financing costs of are included in Other Assets.

 

Annual maturities of capital lease obligations as of   are as follows:

 

 

On the Company entered into the Fourth Amendment and Consent (the “Fourth Amendment”) to the Amended and Restated Credit and Guaranty Agreement (as amended, modified or supplemented, the “Credit Agreement”). The Fourth Amendment provided for the lenders’ consent to the Matrix Transaction and additionally required the net cash proceeds received by the Company be applied to the prepayment of outstanding term loans, to the prepayment of outstanding revolving loans and for any purpose not prohibited by the Credit Agreement. Additionally, effective following the repayment of the outstanding term loans in full on   the Fourth Amendment further (i) reduced the aggregate revolving commitments under the Credit Agreement to (ii) amended the consolidated net leverage ratio covenant such that the Company’s consolidated net leverage ratio not be greater than as of the end of any fiscal quarter, (iii) replaced the existing consolidated fixed charge coverage ratio covenant with a covenant that the Company’s consolidated interest coverage ratio not be less than as of the end of any fiscal quarter and (iv) amended the Credit Agreement to make certain other changes to the terms thereof.

 

 

The Company had no borrowings outstanding under the Credit Facility as of of the Credit Facility is available to collateralize certain letters of credit. As of letters of credit in the amount of were outstanding. At the Company’s available credit under the Credit Facility was

The Company’s obligations under the Credit Facility are guaranteed by all of the Company’s present and future domestic subsidiaries, excluding certain domestic subsidiaries which include the Company’s insurance captives. The Company’s obligations under, and each guarantor’s obligations under its guaranty of, the Credit Facility are secured by a priority lien on substantially all of the Company’s respective assets, including a pledge of of the issued and outstanding stock of the Company’s domestic subsidiaries, excluding the Company’s insurance captives, and of the issued and outstanding stock of the Company’s tier foreign subsidiaries. However, in connection with the completion of the Matrix stock subscription, Matrix was released as a guarantor of the Company’s obligations under its Credit Agreement and Matrix’s property is no longer pledged to secure such obligations.

 

 

On the Company entered into the Second Amendment to the Credit Agreement (the “Second Amendment”) to amend the Credit Facility to (i) add a new term loan tranche in the aggregate principal amount of up to to partly finance the acquisition of Matrix, (ii) provide the consent of the required lenders to consummate the acquisition of Matrix, (iii) permit incurrence of additional debt to fund the acquisition of Matrix and, (iv) add an excess cash flow mandatory prepayment provision.

 

On the Company entered into the Third Amendment to the Credit Agreement (the “Third Amendment”) to amend the Credit Agreement to (i) allow the lenders under the Credit Agreement to consent to the Company’s sale of the Human Services segment, provided that a minimum amount equal to of the net cash proceeds, as defined in the Credit Agreement, of the sale is applied pro rata to the prepayment of revolving loans and swingline loans under the Credit Agreement and (ii) allow the lenders to consent to the Company’s use of of the net cash proceeds of the sale to make restricted payments to repurchase common stock pursuant to a Providence stock repurchase program. The Third Amendment provided for amendments to the terms of the Credit Agreement to reflect such consents.

 

The Credit Facility matures on The Company prepay the Credit Facility in whole or in part, at any time without premium or penalty, subject to reimbursement of the lenders’ breakage and redeployment costs in connection with prepayments of London Interbank Offered Rate, or LIBOR, loans. The unutilized portion of the commitments under the Credit Facility be irrevocably reduced or terminated by the Company at any time without penalty.

Interest on the outstanding principal amount of the loans accrues, at the Company’s election, at a per annum rate equal to LIBOR, plus an applicable margin, or the base rate as defined in the agreement plus an applicable margin. The applicable margin ranges from to in the case of LIBOR loans and to in the case of the base rate loans, in each case, based on the Company’s consolidated leverage ratio as defined in the Credit Agreement. Interest on the loans is payable quarterly in arrears. In addition, the Company is obligated to pay a quarterly commitment fee based on a percentage of the unused portion of each lender’s commitment under the Credit Facility and quarterly letter of credit fees based on a percentage of the maximum amount available to be drawn under each outstanding letter of credit. The commitment fee and letter of credit fee range from to and to respectively, in each case, based on the Company’s consolidated leverage ratio.

 

The Credit Facility also requires the Company (subject to certain exceptions as set forth in the Amended and Restated Credit Agreement) to prepay the outstanding loans in an aggregate amount equal to of the net cash proceeds received from certain asset dispositions, debt issuances, insurance and casualty awards and other extraordinary receipts.

 

The Credit Agreement contains customary affirmative and negative covenants and events of default. The negative covenants include restrictions on the Company’s ability to, among other things, incur additional indebtedness, create liens, make investments, give guarantees, pay dividends, sell assets and merge and consolidate. The Company is subject to financial covenants, including consolidated net leverage and consolidated interest coverage covenants.

 

 

NET Services has capital leases for information technology equipment with termination dates ranging from through The terms of the leases are between and months, with interest recorded at an incremental borrowing rate of At represents equipment under capital leases and represents accumulated depreciation recognized on this leased equipment.