DEBT OBLIGATIONS

3 Months Ended

Mar. 31, 2018

10. DEBT OBLIGATIONS

Debt obligations consisted of the following (in thousands):

	March 31, 2018			December 31, 2017
Current Borrowings
China Credit Facility (4.6% at March 31, 2018)	$	478		$	461

Current borrowings	$	478		$	461


Long-term Debt
Revolving Credit Facility, long term (1)	$	63,462		$	53,266
Unamortized debt issuance costs	(534		)	(572		)

Long-term debt	$	62,928		$	52,694

(1)

The effective rate of the Revolver is 3.3% at March 31, 2018.

Credit Agreement

On October 28, 2016, the Company entered into a Credit Agreement (the “Credit Agreement”) for a $125,000 revolving credit facility (the “Revolving Facility”). The Revolving Facility includes a $50,000 accordion amount and has an initial term of five years. HSBC Bank USA, National Association is the administrative agent, HSBC Securities (USA) Inc. is the sole lead arranger and sole book runner, and Keybank National Association and Wells Fargo Bank, National Association are co-syndication agents.

Borrowings under the Revolving Credit Facility are subject to terms defined in the Credit Agreement. Borrowings bear interest at the LIBOR Rate plus a margin of 1.00% to 2.25% or the Prime Rate plus a margin of 0% to 1.25%, in each case depending on the Company’s ratio of total funded indebtedness to Consolidated EBITDA (the “Total Leverage Ratio”). At March 31, 2018, the applicable margin for LIBOR Rate borrowings was 1.50% and the applicable margin for Prime Rate borrowings was 0.50%. In addition, the Company is required to pay a commitment fee of between 0.10% and 0.25% quarterly (currently 0.125%) on the unused portion of the Revolving facility, also based on the Company’s Total Leverage Ratio.

The Credit Agreement contains certain financial covenants related to minimum interest coverage and total leverage ratio at the end of each quarter. The Credit Agreement also includes other covenants and restrictions, including limits on the amount of additional indebtedness, and restrictions on the Company’s ability to merge, consolidate or sell all or substantially all of its assets. The Company was in compliance with all covenants at March 31, 2018.

Other

The China Facility provides credit of approximately $1,592 (Chinese Renminbi (“RMB”) 10,000). The China Facility is used for working capital and capital equipment needs at the Company’s China operations. The average balance for 2018 was $476 (RMB 3,000). At March 31, 2018, there was approximately $1,114 (RMB 7,000) available under the facility.