Note 9 - Debt

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

The below table presents details of the Company's debt:

	September 30, 2021		December 31, 2020
Short term debt
Working capital facilities		3,929		15,505
Current portion of long term debt
Current maturity of long term loan		-		-
Current maturity of equipment loan		1,698		1,664
Current maturity of finance lease obligations		519		516
Total	$	6,146		17,685
Long term debt
Term loan, net of debt issuance costs		162,515	$	114,930
Equipment loan		1,685		2,955
Finance lease obligations		40		430
Total	$	164,240	$	118,315

Working capital facilities

The Company has a number of working capital facilities in various countries in which it operates. These facilities provide for a combined borrowing capacity of approximately $30 million for a number of working capital products. These facilities bear interest at benchmark rate plus margins between 3.0% and 4.5% and are due on demand. These facilities are collateralized by various Company assets and have a total outstanding balance of $3.9 million as of September 30, 2021.

Term loan

On February 18, 2021, the Company completed a debt refinancing with a newly secured $185 million senior debt facility, comprising a $165 million term loan and a $20 million revolving credit facility. Under the new senior debt, borrowings will bear a tiered interest rate based on the Company’s consolidated net leverage ratio and is initially set at LIBOR plus 450 basis points.

The term loan facility amortizes 2.5% on the date that is 21, and 24 months from closing, 3.75% on the date that is 27, 30, 33, and 36 months from closing, 5.0% on the date that is 39, 42, 45, 48 and 51 months from closing, 10% on the date that is 54 months from closing and 15% on the date that is 57 months from closing and balance will be paid on the closure of term loan.

On February 22, 2021, the Company used proceeds from the above facilities agreement to prepay and terminate the existing credit facility made available to it under that certain Amended and Restated Senior Term and Revolving Facilities Agreement, dated October 27, 2017.

Principal payments due on the term loan are as follows:

Years	Amount
Remainder of 2021		-
2022		4,125
2023		22,688
2024		30,937
2025		57,750
2026		49,500
Total	$	165,000

The Term loan has a floating interest rate of USD LIBOR plus 4.5% annually for the first year and thereafter the margin will range between 3.75% and 4.5% subject to certain financial ratios.

The Company incurred debt issuance costs of $11.3 million in connection with the new term loan. As per ASC 470, accounting guidance on term loan extinguishment, the Company has expensed off the debt issuance cost of $8.5 million paid to the lenders towards the new term loan and $2.5 million remaining unamortized debt issuance cost of the old term loan in interest expense, net in the consolidated statement of income (loss).

In connection with the new term loan, the unamortized debt issuance costs as of September 30, 2021 amount to $2.5 million which have net off against long-term debt on the consolidated balance sheet.

Following table presents the changes in debt issuance cost during the nine months ended  September 30, 2021 and the year ended December 31, 2021:

	September 30, 2021			December 31, 2020
Opening balance		2,670			4,125
Add: Debt issuance cost (refinancing of term loan)		11,269			-
Less: Expensed out (ASC 470 - extinguishment or modification)		(10,937	)		-
Less: Amortisation of debt issuance cost		(517	)		(1,455	)
Closing balance	$	2,485		$	2,670

Non-recourse factoring

We have entered into factoring agreements with financial institutions to sell certain of our accounts receivable under non-recourse agreements. Under the arrangement, the Company sells the trade receivables on a non-recourse basis and accounts for the transactions as sales of receivables. The applicable receivables are removed from the Company's consolidated balance sheet when the Company receives the cash proceeds. We do not service any factored accounts after the factoring has occurred. We utilize factoring arrangements as part of our management of working capital. The balance of funds received from factored receivables under these agreements was $20.2 million as of September 30, 2021.

BMO Equipment Loan

On December 27, 2018, the Company executed an agreement to secure a loan against US and Canadian assets for $2.06 million at the interest of 7.57% per annum, to be repaid over 2.5 years. The loan was funded in January 2019. The amount outstanding as of September 30, 2021 is $0.1 million.

Equipment Loan

On November 02, 2020, the Company executed Master Equipment Finance Agreement to finance the purchase of equipment for $4 million at the interest of 5.27% per annum with a maturity date 34 months after the date of first utilization of equipment loan. The amount outstanding as of September 30, 2021 is $3.3 million.

Finance lease obligations

From time to time and when management believes it to be advantageous, we may enter into other arrangements to finance the purchase or construction of capital assets.