Bank Line of Credit

9 Months Ended

Mar. 31, 2015

Bank Line of Credit

Bank Line of Credit

Note 10.  Bank Line of Credit

In December 2013, the Company entered into a credit agreement (the “Credit Agreement”) with Citibank, N.A., as administrative agent, and another financial institution. As of March 31, 2015, the Credit Agreement provided for a revolving loan commitment in the amount of up to $50.0 million.  Any loans under the Credit Agreement will bear interest at either a “Eurodollar Rate” or a “Base Rate” plus a specified margin.  The Company is also required to pay a commitment fee on any undrawn commitments under the Credit Agreement ranging from 0.2% - 0.3% per annum according to the average daily balance of borrowings under the agreement. The Credit Agreement is collateralized by substantially all of the Company’s assets. In connection with securing the Credit Agreement, the Company repaid substantially all of its outstanding debt. See Note 11 “Long-Term Debt” for more information. As of March 31, 2015 and June 30, 2014, the Company had $50.0 million available under the Credit Agreement.

The Credit Agreement contains representations and warranties, affirmative, negative and financial covenants, and events of default, applicable to the Company and its subsidiaries which are customary for credit facilities of this type.  As of March 31, 2015 and June 30, 2014, the Company was in compliance with all financial covenants.

The Credit Agreement was amended on April 21, 2015.  See Note 22 “Subsequent Events” for more information.