FINANCING ARRANGEMENTS	6 Months Ended
FINANCING ARRANGEMENTS	Jun. 30, 2013
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS	NOTE 3. FINANCING ARRANGEMENTS On May 2, 2012, we entered into the fourth amendment to the third amended and restated credit agreement with Wells Fargo Bank (WFB). The credit agreement with WFB provides for a line of credit arrangement of $13.5 million, which expires if not renewed, on May 31, 2015. The credit arrangement also provides a $1.8 million real estate term note with a maturity date of March 31, 2027 which replaced the $0.9 million real estate term note that was to expire on May 31, 2012, and a new term loan of up to $2.0 million for capital expenditures to be made prior to December 31, 2013 with a maturity date of December 31, 2017. At June 30, 2013, we’ve used $0.9 million of the $2.0 million capital term loan. On December 31, 2012, in connection with our purchase of the Mankato building, we again amended our credit agreement with WFB to include an additional $1.7 million real estate term note that expires if not renewed on May 31, 2015. The purchase of the building was funded through our line of credit which was paid down when the new real estate term note was funded on January 9, 2013. Under the agreement, both the line of credit and real estate term notes are subject to variations in the LIBOR rate. Our line of credit bears interest at three-month LIBOR + 2.75% (approximately 3.00% at June 30, 2013) while our real estate term notes bear interest at three-month LIBOR + 3.25% (approximately 3.5% at June 30, 2013). The weighted-average interest rate on our line of credit was 3.3% and 3.2% for the three and six months ended June 30, 2013, respectively, while the weighted-average rate on our real estate term loan was 3.7% and 3.5% for the same periods. We had borrowings on our line of credit of $8,674,662 and $7,923,487 outstanding as of June 30, 2013 and December 31, 2012, respectively. The credit agreement contains certain covenants which, among other things, require us to adhere to regular reporting requirements, abide by annual shareholder dividend limitations, maintain certain financial performance, and limit the amount of annual capital expenditures. The availability under the line is subject to borrowing base requirements, and advances are at the discretion of the lender. At June 30, 2013, we have net unused availability under our line of credit of approximately $3.9 million. The line is secured by substantially all of our assets.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details