XML 59 R16.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Bank Credit Agreements and Other Short-Term and Long-Term Debt
12 Months Ended
Dec. 31, 2019
Long Term Debt By Current And Noncurrent [Abstract]  
Bank Credit Agreements and Other Short-Term and Long-Term Debt

Note 8 – Bank Credit Agreements and Other Short-term and Long-term Debt  

Short-term debt

Our Asia subsidiaries maintain credit facilities with several financial institutions through our foreign entities worldwide totaling $126.6 million. Other than two Taiwanese credit facilities that are collateralized by assets, our foreign credit lines are unsecured, uncommitted, repayable on demand, terminable by the lender at any time and contain no restrictive covenants.  These credit facilities bear interest at LIBOR or similar indices plus a specified margin.  Interest payments are due quarterly on outstanding amounts under the credit lines. The unused and available credit under the various facilities as of December 31, 2019, was approximately $111.8 million, net of a $13.3 million advanced under our foreign credit lines and $1.4 million credit used for import and export guarantee.   


Long-term debt

We currently have a U.S. banking credit facility (the “U.S. Credit Facility”) under which we may draw up to $250 million on a revolving basis, in addition to a $250 million term loan.  The U.S. Credit Facility matures October 26, 2021.  The remaining portion of the term loan included in the U.S. Credit Facility is repayable in part through quarterly installments that increase over time from $6.3 million per quarter in the first three quarters of 2019 to $9.4 million per quarter in the final year of the U.S. Credit Facility. We may, from time to time, request increases in the aggregate commitments under the U.S. Credit Facility of up to $200 million, subject to the lenders electing to increase their commitments or by means of the addition of new lenders, and subject to at least half of each increase in aggregate commitments being in the form of term loans, with the remaining amount of each increase being an increase in the amount of the revolving portion of the U.S. Credit Facility.  The U.S. Credit Facility bears interest at LIBOR or similar indices plus a specified margin.  The U.S. Credit Facility contains certain financial and non-financial covenants, including, but not limited to, a maximum consolidated leverage ratio, a minimum consolidated fixed charge coverage ratio, and restrictions on liens, indebtedness, investments, fundamental changes, dispositions, and restricted payments (including dividends and share repurchases).  At December 31, 2019, we owed $75.2 million under the U.S. Credit Facility, all of which was outstanding under the term loan. The obligations of the Company and the other borrowers under the U.S. Credit Facility are secured by substantially all of the assets of the Company, including controlling interests in its first-tier subsidiaries, and by specified assets of certain of its subsidiaries.  In addition to our credit lines, our 51% owned subsidiary, ERIS Technology Corporation (“ERIS”), borrowed $23.5 million on a long-term basis from local Taiwan banks in order to make an investment.  The first loan of $4.3 million matures in 2033, while the second loan of $19.2 million matures in 2024.

Long-term debt balances as of December 31, consist of the following:

 

 

2019

 

 

2018

 

Notes payable

to Bank of Taiwan, original principal amount of TWD 140 million,

   fixed interest rate of 1.3%, matures June 28, 2033.

$

4,242

 

 

$

4,442

 

Notes payable to Yuan Ta Bank, original principal amount of

TWD 113 million,

   fixed interest rate of 1.7%, matured on January 29, 2019.

 

-

 

 

 

749

 

Notes payable to China Trust Bank, original principal of TWD 576 million, fixed interest rate of 1.7%, matures May 27, 2024

 

19,212

 

 

 

 

 

 

 

 

 

 

 

 

 

Term loan and revolver

 

75,187

 

 

 

210,000

 

Total long-term debt

 

98,641

 

 

 

215,191

 

Less:  Current portion

 

(33,105

)

 

 

(27,613

)

Less:  Unamortized debt issuance costs

 

(1,135

)

 

 

(1,435

)

Long-term debt, net of current portion

$

64,401

 

 

$

186,143

 

 

The table below sets forth the annual contractual maturities of long-term debt at December 31, 2019:

 

2020

$

33,102

 

2021

 

43,620

 

2022

 

4,903

 

2023

 

1,571

 

2024

 

12,689

 

2025 and thereafter

 

2,756

 

Total long-term debt

$

98,641