Annual report pursuant to Section 13 and 15(d)

Debt

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Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt consisted of the following (in thousands):
December 31,
  2021 2020
Bank credit facility - term loan $ 60,175  $ 77,988 
Bank credit facility - revolver loans 226,559  175,473 
Principal amount of long-term debt 286,734  253,461 
Less debt issuance costs (2,165) (2,368)
Total long-term debt 284,569  251,093 
Less current portion (14,162) (20,379)
Long-term debt, net of current portion $ 270,407  $ 230,714 

We have a loan agreement with a group of banks from which we borrow amounts under the loan agreement to provide working capital support, fund letters of credit, and finance acquisitions. The loan agreement includes term and revolving loan facilities. The revolving loan facility provides for revolving loans and letters of credit.

On July 23, 2021, we entered into a third amendment to our loan agreement which, among other things, extended the maturity dates with respect to the revolving credit facility and term loan facility to July 2024, lowered the applicable LIBOR rate floor, and modified the maximum Total Funded Debt to EBITDA Ratio. Except as described above, the amended loan agreement has substantially the same terms as the existing loan agreement, including covenants and events of default. Financing costs associated with the loan agreement amendment of approximately $808 thousand were capitalized and are being amortized over the remaining term of the loan.

Our required term and revolver loan payments after December 31, 2021 are as follows (in thousands):
Year ending December 31,
2022 $ 15,000 
2023 15,000 
2024(a)
256,734 
Total $ 286,734 
(a) Includes the revolver loan required payment of $227 million.

The maximum amount of credit available under the loan agreement for revolving loans and letters of credit as of December 31, 2021 was $350 million. We pay an unused commitment fee and fees on letters of credit that are issued. We had $1.0 million letters of credit outstanding as of December 31, 2021 and no letters of credit outstanding as of December 31, 2020.

Under the loan agreement we may elect to increase the maximum availability of the term loan facility, the revolving loan facility, or both facilities up to an aggregate additional amount of $100 million subject to lender approvals.

We pay interest on the term loan borrowings and revolving loan borrowings at LIBOR plus a margin or at a base rate (typically the prime rate) plus a base margin. As of December 31, 2021, the LIBOR margin was 3.25% and the base margin was 2.25%. The margins increase or decrease in increments as our Total Funded Debt/EBITDA Ratio increases or decreases.

We use interest rate hedges on a portion of our debt. The amount of our debt with interest rate swap agreements was $75.0 million as of December 31, 2021. After taking into account the impact of hedging instruments, as of December 31, 2021 interest rates on portions of our outstanding debt ranged from 4.00% to 6.66%, and the effective interest rate on our aggregate outstanding debt was 4.39%.

Interest expense incurred on bank loan borrowings and interest rate hedges was approximately $11.2 million, $12.7 million and $13.3 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The loan agreement contains collateral requirements to secure our loan agreement obligations, restrictive covenants, a limit on annual dividends, and other affirmative and negative covenants, conditions, and limitations. Restrictive covenants include a
maximum Total Funded Debt to EBITDA Ratio and a minimum Fixed Charge Coverage Ratio. We were in compliance with required ratios and other terms and conditions as of December 31, 2021.