Note 9 - Line of Credit

9 Months Ended

Sep. 28, 2019

9.	Line of Credit

The Company and its subsidiaries amended and restated its Revolving Credit Facility with Citizens Bank of Pennsylvania on

October 18, 2019.

As amended and restated, the Revolving Credit Facility provides for a

$45.0

million revolving credit facility, has

sub-limit for letters of credit, and expires on

August 8, 2023.

Borrowings under the Revolving Credit Facility bear interest at

one

two

alternative rates, as selected by the Company at each incremental borrowing. These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, typically borrowed in fixed

-day increments or (ii) the agent bank’s prime rate generally borrowed over shorter durations. The Company also pays unused line fees based on the amount of the Revolving Credit Facility that is

not

drawn. Unused line fees are recorded as interest expense. The effective weighted average interest rate, including unused line fees, for the

thirty-nine

week periods ended

September 28, 2019

and

September 29, 2018

were

4.6%

and

3.8%,

respectively.

All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries. The Revolving Credit Facility also contains various financial and non-financial covenants, such as a covenant that restricts on the Company’s ability to borrow in order to pay dividends. As of

September 28, 2019,

the Company was in compliance with all covenants contained in the Revolving Credit Facility.

Borrowings under the line of credit as of

September 28, 2019

and

December 29, 2018

were

$31.7

million and

$27.5

million, respectively. At

September 28, 2019

and

December 29, 2018

there were letters of credit outstanding for

$1.6

million. At

September 28, 2019,

the Company had availability for additional borrowings under the Revolving Credit Facility of

$11.7

million.