CREDIT FACILITY

12 Months Ended

Dec. 31, 2013

Notes to Financial Statements

Credit Facility

4. CREDIT FACILITY AND LONG-TERM DEBT

The Company has a credit and security agreement with Wells Fargo Bank, National Association which expires December 31, 2015. The agreement includes a $15.0 million asset-based revolving line of credit with a stated interest rate at December 31, 2013 of LIBOR plus 3.75% (4.00%). There is an annual minimum interest charge of $100 thousand under the agreement. Amounts due under the credit facility are secured by a first security interest in essentially all of the Company's assets excluding assets securing the term debt referenced below, which is an obligation of Heska Imaging and which was outstanding when the Company’s acquired a majority interest in Heska Imaging. Under the agreement, the Company is required to comply with certain financial and non-financial covenants. Among the financial covenants are requirements for minimum capital monthly, minimum net income quarterly and capital expenditures monthly. The amount available for borrowings under the line of credit varies based upon available cash, eligible accounts receivable and eligible inventory. As of December 31, 2013, there was $4.8 million of borrowings outstanding and there was approximately $3.8 million available capacity for borrowings under the line of credit agreement.

Long-term debt consists of the following (dollars in thousands):

	December 31,
	2012		2013
Term loan with a commercial bank, secured by demo equipment, due in monthly installments beginning July 2012 with the balance paid in full in June 2017 and a stated interest rate of 6.0%.		—		501
Less current portion of long-term debt		—		132
Long-term debt, net of current portion	$	—	$	369

Maturities of long-term debt as of December 31, 2013 were as follows (in thousands):

Year Ending December 31,
2014	$	132
2015		141
2016		149
2017		78
	$	501