Note 9 - Debt

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

9.  DEBT

The Company has a Credit and Security Agreement with KeyBank National Association (as amended, the "credit agreement" or the "CSA").  The CSA consists of (i) a term loan, with outstanding borrowings of $101.9 million and $104.8 million at June 30, 2021 and December 31, 2020, respectively, and (ii) a $75 million revolving credit facility (“Revolver”), with $12.0 million in outstanding borrowings at each of  June 30, 2021 and  December 31, 2020.  The CSA has a maturity date of December 11, 2022.  At June 30, 2021 and December 31, 2020, the carrying value of the debt on the condensed consolidated balance sheet is reflected net of $0.9 million and $1.3 million, respectively, of deferred financing costs. 

On February 3, 2021, the Company received a retroactive consent from its lenders to exclude the proceeds of a property sale in Hong Kong from the calculation of the disposition basket outlined in the credit agreement.  

The weighted-average interest rate in effect was 1.88% at June 30, 2021 and 2.19% at December 31, 2020 and consisted of LIBOR plus the Company’s credit spread, as determined per the terms of the CSA.  The Company incurred $0.7 million and $1.3 million of interest expense during the three months ended June 30, 2021 and June 30, 2020, respectively, and $1.5 million and $2.6 million of interest expense during the six months ended June 30, 2021 and June 30, 2020, respectively.  

The CSA contains customary representations and warranties, covenants and events of default and financial covenants that measure (i) the ratio of the Company's total funded indebtedness, on a consolidated basis, to the amount of the Company’s consolidated EBITDA, as defined (“Leverage Ratio”) and (ii) the ratio of the amount of the Company’s consolidated EBITDA to the Company’s consolidated fixed charges ("Fixed Charge Coverage Ratio"). If an event of default occurs, the lenders under the CSA would be entitled to take various actions, including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor.  At June 30, 2021, the Company was in compliance with its debt covenants, including its most restrictive covenant, the Leverage Ratio.