7.	Borrowing Arrangements

The Corporation has a five-year Revolving Credit and Security Agreement (the “Credit Agreement”) with a syndicate of banks that expires in May 2021. The Credit Agreement provides for initial borrowings not to exceed $100,000 with an option to increase the credit facility by an additional $50,000 at the request of the Corporation and with the approval of the banks. The Credit Agreement includes sublimits for letters of credit not to exceed $40,000, European borrowings not to exceed $15,000, and Canadian borrowings not to exceed $15,000.

Availability under the Credit Agreement is based on eligible accounts receivable, inventory and fixed assets. Amounts outstanding under the credit facility bear interest, at the Corporation’s option, at either (i) LIBOR plus an applicable margin ranging between 1.25% to 1.75% based on the quarterly average excess availability or (ii) the base rate plus an applicable margin ranging between 0.25% to 0.75% based on the quarterly average excess availability. Additionally, the Corporation is required to pay a commitment fee ranging between 0.25% and 0.375% based on the daily unused portion of the credit facility. As of June 30, 2018, the Corporation had outstanding borrowings under the Credit Agreement of $40,320 (including £1,000 of European borrowings for its U.K. subsidiary). The average interest rate for the six months ended June 30, 2018, was approximately 2.64%. Additionally, the Corporation had utilized a portion of the credit facility for letters of credit (Note 8). As of June 30, 2018, remaining availability under the Credit Agreement approximated $37,000.

The debt outstanding under the Credit Agreement is collateralized by a first priority perfected security interest in substantially all of the assets of the Corporation and its subsidiaries (other than real property). Additionally, the Credit Agreement contains customary affirmative and negative covenants and limitations, including, but not limited to, investments in certain of its subsidiaries, payment of dividends, incurrence of additional indebtedness, upstream distributions from subsidiaries, and acquisitions and divestures. The Corporation must also maintain a certain level of excess availability. If excess availability falls below the established threshold, or in an event of default, the Corporation will be required to maintain a minimum fixed charge coverage ratio of not less than 1.00 to 1.00. The Corporation was in compliance with the applicable bank covenants as of June 30, 2018.

Outstanding borrowings of the Corporation as of June 30, 2018, and December 31, 2017, consisted of the following:

	June 30, 2018			December 31, 2017
Industrial Revenue Bonds ("IRB")	$	13,311		$	13,311
Promissory notes (and interest)		26,212			25,395
Revolving Credit and Security Agreement		40,320			20,349
Minority shareholder loan		5,084			5,325
Capital leases		1,398			1,773
Outstanding borrowings		86,325			66,153
Debt - current portion		(45,080	)		(19,335	)
Long-term debt	$	41,245		$	46,818