Note 7 - Revolving Lines of Credit and Long-term Debt

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

7

— REVOLVING LINES OF CREDIT AND LONG-TERM DEBT

In March 2016, the Company renewed its $30 million unsecured revolving credit line

. The line of credit expires in the third quarter of fiscal 2019

. Interest on the revolving line of credit is charged based upon an increment over the LIBOR rate as periodically determined, or at the bank’s base lending rate, at the Company’s option.  The increment over the LIBOR borrowing rate, as periodically determined, fluctuates between 150 and 190 basis points depending upon the ratio of indebtedness to earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined in the credit facility.  The fee on the unused balance of the $30 million committed line of credit is 12.5 basis points.  Under the terms of this credit facility, the Company has agreed to a negative pledge of assets and is required to comply with financial covenants that limit the amount of debt obligations, require a minimum amount of tangible net worth, and limit the ratio of indebtedness to EBITDA. As of June 30, 2016, $0.7 million of the $30 million line of credit was reserved for two letters of credit with a foreign supplier.

The Company is in compliance with all of its loan covenants as of June 30, 2016

.