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## NOTE E — CURRENT DEBT 

## 1998 Credit Facility 

On December 22, 1998, EMCOR restated its June 19, 1996 credit facility; the amended credit facility provides EMCOR with a credit facility for borrowings of up to $150.0 million. The amended credit facility, which has an expiration date of June 30, 2003, is guaranteed by certain direct and indirect subsidiaries of EMCOR. The amended credit facility is secured by substantially all of the assets of EMCOR and most of its subsidiaries, and it provides for borrowing capacity available in the form of revolving loans and/or letters of credit. The amended credit facility contains various covenants, including, among other things, maintenance of certain financial ratios and significant restrictions with respect to cumulative aggregate payments for dividends, common stock repurchases, investments, acquisitions, indebtedness, capital expenditures, and prepayments of subordinated debt, all as set forth therein. The annual facility fee is 0.25% per $1,000 of the total credit facility. The revolving loans bear interest at (1) a rate which is the prime commercial lending rate announced by Harris Trust and Savings Bank from time to time (4.75% at December 31, 

## NOTE F — LONG-TERM DEBT 

## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

2001) plus 0% to 0.5%, based on certain financial tests or (2) a LIBOR rate (2.04% at December 31, 2001) plus 1.25% to 2.0%, based on certain financial tests. The interest rates in effect at December 31, 2001 were 4.75% and 3.29%, respectively. Letters of credit fees issued under the credit facility, ranging from 0.5% to 2.0%, are charged based on type of letters of credit issued and certain financial tests. As of December 31, 2001 and 2000, EMCOR had approximately $20.5 million and $12.1 million of letters of credit outstanding, respectively. No revolving loans were outstanding under the 1998 Credit Facility at December 31, 2001 or 2000. 

## Foreign Borrowings 

In December 2000, EMCOR’s Canadian subsidiary, Comstock Canada Ltd., renewed a credit agreement with a bank providing for an overdraft facility of up to Cdn. $0.5 million. The facility is secured by a standby letter of credit and provides for interest at the bank’s prime rate which was 4.0% at December 31, 2001. There were no borrowings outstanding under this credit agreement at December 31, 2001 or 2000. 

Long-term debt in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2001 and 2000 (in thousands): 

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## Convertible Subordinated Notes 

In March 1998, EMCOR sold, pursuant to an underwritten public offering, $115.0 million principal amount of 5.75% Convertible Subordinated Notes. During the second quarter of 2001, EMCOR called its $115.0 million 5.75% Convertible Subordinated Notes for redemption. All of the Convertible Subordinated Notes were converted, net of related deferred financing costs, into approximately 4.2 million shares of EMCOR common stock. 

## Capitalized Lease Obligations 

See Note K in the Notes to Consolidated Financial Statements. 

## Other Long-Term Debt 

Other long-term debt consists primarily of loans for real estate, office equipment, automobiles and building improvements. As of December 31, 2001 and 2000, respectively, other long-term debt totaling $1.6 million and $1.1 million was owed by certain of EMCOR’s subsidiaries. The aggregate amount of other long-term debt maturing during the next five years is approximately $0.9 million in 2002, $0.2 million in 2003, $0.1 million in each of 2004, 2005 and 2006, and $0.2 million thereafter. 

