Note J - Long-term Debt

6 Months Ended

Dec. 29, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

J. Long-term Debt

Long-term debt at

December 29, 2017

and

June 30, 2017

consisted of the following:

	December 29, 2017		June 30, 2017
Revolving loan	$	4,645	$	6,285
Other		39		38
Subtotal		4,684		6,323
Less: current maturities and short-term borrowings		-		-
Total long-term debt	$	4,684	$	6,323

The revolving loan agreement pertains to the revolving loan facility which the Company entered into on

April 22, 2016

with Bank of Montreal (the “BMO Agreement”). The BMO Agreement is secured by

substantially all of the Company’s personal property, including accounts receivable, inventory, and certain machinery and equipment of its primary manufacturing facility in Racine, Wisconsin, and the personal property of Mill-Log Equipment Co., Inc., a wholly-owned domestic subsidiary of the Company. The BMO Agreement provides for a borrowing base calculation to determine borrowing capacity. This capacity will be based upon eligible domestic inventory, eligible accounts receivable and machinery and equipment, subject to certain adjustments. As of

December 29, 2017,

the Company’s borrowing capacity under the terms of the BMO Agreement was approximately

$28,588,

and the Company had approximately

$23,128

of available borrowings. As of

December 29, 2017,

the interest rate under this agreement was

3.11%.

 

The Company

’s revolving loan agreement approximates fair value at

December 29, 2017

and

June 30, 2017.

If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level

2

in the fair value hierarchy.