LONG-TERM DEBT
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2014
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | NOTE 4 – LONG-TERM DEBT Debt consists of the following:
We entered into a new credit agreement on July 8, 2014. See Note 13, Subsequent Events, for further information.
We were a party to a revolving loan and security agreement with a lender (the “Credit Agreement”) (most recently amended on January 27, 2014). The Credit Agreement provided for a Revolving Line of Credit (the “LOC”) with a maximum limit of $50,000. The LOC was due May 4, 2016 with interest at either 1) the Eurodollar rate (“LIBOR”) or 2) the Alternate Base Rate (which approximates the Prime Rate), plus a margin based on the type of rate applied. We had $2,000 and $24,500 outstanding on the LOC at 1-month LIBOR including margin (2.25%) as of June 30, 2014 and December 31, 2013, respectively. We also had $4,989 and $2,769 outstanding on the LOC at the Alternate Base Rate including margin (4.25%) as of June 30, 2014 and December 2013, respectively. The LOC permitted borrowings based on a stated percentage of eligible accounts receivable and inventories. The borrowings on the LOC were also subject to a minimum availability reserve. We had additional available borrowings of $35,835 and $15,556 under our LOC as of June 30, 2014 and December 31, 2013, respectively. In addition, we were required to pay a monthly fee of 0.375% per annum on the average unused commitment under the LOC. Amounts outstanding under the Credit Agreement were collateralized by a first lien security position on all assets, including, but not limited to, all real estate, property, equipment, receivables and inventories. The Credit Agreement also contained various restrictive non-financial covenants that included more frequent borrowing base reporting if the minimum availability fell below a certain threshold, and several limitations on specific changes that would have resulted in incurring additional debts or pledging our assets, including restrictions on distributions to be made to our stockholders. The Credit Agreement also contained a provision that upon an event of default (as defined within the Credit Agreement), amounts outstanding under the LOC would bear interest at the rate as determined above plus 2%. The Credit Agreement also allowed us to issue Letters of Credit not to exceed $10,000 in the aggregate. To support our insurance programs, there were outstanding Letters of Credit of $7,175 as of June 30, 2014 and December 31, 2013. |