Short-Term and Long-Term Debt

9 Months Ended

Mar. 31, 2021

Short-term borrowings and long-term debt consisted of the following obligations:


(Amounts in Thousands)	March 31, 2021		June 30, 2020
Short-term debt under credit facility due June 8, 2021; 1.56%	$	40,000	$	—
PPP loan obtained in Poppin acquisition due April 23, 2022; 1.00%	2,503		—
Other debt maturing August 12, 2025; 9.25%	109		136

Total Debt	$	42,612	$	136

As of March 31, 2021 we had a $125.0 million credit facility with a maturity date of October 2024 that allowed for both issuances of letters of credit and cash borrowings. We also have an option to request an increase of the amount available for borrowing to

$200.0 million, subject to participating banks’ consent. The loans under the Credit Agreement could consist of, at our election, advances in U.S. dollars or advances in any other currency that was agreed to by the lenders. The proceeds of the loans are to be used for general corporate purposes including acquisitions. A portion of the credit facility, not to exceed $10 million of the principal amount, was available for the issuance of letters of credit. At March 31, 2021, we had $1.7 million in letters of credit outstanding, which reduced our borrowing capacity on the credit facility. Total availability to borrow under the credit facility totaled $83.3 million at March 31, 2021. For the third quarter of fiscal year 2021 and 2020, interest expense incurred and paid was, in thousands, $182 and $0, respectively, and for the year-to date periods of fiscal year 2021 and 2020 was $211 and $15, respectively.

The interest rate is dependent on the type of borrowings and will be one of the following two options:

•the adjusted London Interbank Offered Rate (“Adjusted LIBO Rate” as defined in the Credit Agreement) in effect two business days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period, plus the Eurocurrency Loans margin which can range from 125.0 to 200.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or

•the Alternate Base Rate (the “ABR”) which is defined as the highest of the fluctuating rate per annum equal to the higher of

a.prime rate as last quoted by The Wall Street Journal; or

b.1% per annum above the Adjusted LIBO rate; or

c.0.5% per annum above the Federal Reserve Bank of New York;

plus the ABR Loans spread which can range from 25.0 to 100.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA.

We were in compliance with all debt covenants of the credit facility during the nine-month period ended March 31, 2021. The most significant financial covenants under the Credit Agreement require:

•an adjusted leverage ratio of (a) consolidated total indebtedness minus unencumbered U.S. cash equivalents in excess of $15,000,000 provided that the maximum subtraction shall not exceed $35,000,000 to (b) adjusted consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0, and

•an interest coverage ratio, for any period, of (a) Consolidated EBITDA for such period to (b) cash interest expense for such period, calculated on a consolidated basis in accordance with GAAP for the trailing four quarter period then ending, to not be less than 3.00 to 1.00.

We acquired Poppin, Inc. subsequent to their borrowing of the Payment Protection Program (“PPP”) loan, and we hold restricted cash in escrow for repayment of the PPP loan. If the PPP loan is forgiven, the proceeds will be paid to the former Poppin, Inc. equity holders per the terms of the agreement and plan of merger.