Note 4 - Debt

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

4

—

DEBT

Credit Facility

On

November 2, 2018

the Company (together with its subsidiaries, and collectively the “Borrower”) entered into a Credit and Security Agreement (the “Credit Facility”) with KeyBank National Association (“KeyBank”).  The Credit Facility consists of a

$10.0

million term loan (the “Term Loan”) and up to

$30.0

million revolving line of credit, including

$1.0

million letter of credit availability (the “Revolving Credit Facility”).  To secure the Credit Facility the Company pledged all personal property assets of Borrower, including, but

not

limited to accounts receivable, coal inventory, and certain surface mining equipment. Real property and improvements are excluded from the collateral package and are

not

encumbered in connection with the Credit Facility. The Company used the Credit Facility to repay the existing notes payable and provide working capital. The Credit Facility has a maturity date of

November 2, 2021.

The Revolving Credit Facility interest rate is based on LIBOR +

2.35%

or Base Rate +

1.75

%.  The Term Loan credit interest rate is based on LIBOR +

4.75%

or Base Rate +

3.75%.

  Base Rate is the highest of (i) KeyBank’s prime rate, (ii) Federal Funds Effective Rate +

0.5%,

or (iii) LIBOR +

1.0%.

  Both loans are initially base rate loans, but

may

be converted to LIBOR rate loans at certain times at the Company’s discretion.

The outstanding principal balance of the Term Loan is required to be repaid in monthly installments of approximately 

$0.4

million until fully repaid. As of

March 31, 2019,

the outstanding principal balance of the Term Loan was

$8.3

million and the carrying amount was

$8.2

million. As of

December 31, 2018,

the outstanding principal balance of the Term Loan was

$9.6

million and the carrying amount was

$9.5

million. As of

March 31, 2019,

$10.5

million was outstanding on the Revolving Credit Facility. There was

no

outstanding balance on the Revolving Credit Facility at

December 31, 2018.

The Credit Facility contains usual and customary representations and warranties and usual and customary affirmative and negative covenants, including but

not

limited to, limitations on liens, additional indebtedness, investments, restricted payments, asset sales, mergers, affiliate transactions and other customary limitations, as well as financial covenants. As of

March 31, 2019,

the Company was in compliance with all covenants under the Credit Facility.