Note 8 - Debt

9 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 8 - DEBT

The Company’s long-term debt as of March 31, 2024, and June 30, 2023, consisted of the following:

	March 31,		June 30,
(In thousands)	2024		2023
Secured line of credit	$	-	$	18,729
Term loan, net of debt issuance costs of $20 and $30, respectively		16,353		16,471
Total debt	$	16,353	$	35,200
Less: amounts due within one year		3,571		3,571
Total amounts due after one year, net	$	12,782	$	31,629

In September 2021, the Company amended its existing $100 million secured line of credit, to a $25 million term loan and $75 million remaining as a secured revolving line of credit. Both facilities expire in the third quarter of fiscal 2026. The principal of the term loan is repaid annually in the amount of $3.6 million over a five-year period with a balloon payment of the remaining balance due on the last month. Interest on both the revolving line of credit and the term loan is charged based upon an increment over the Secured Overnight Financing Rate (SOFR) or a base rate, at the Company’s option. The base rate is calculated as the highest of (a) the Prime rate, (b) the sum of the Overnight Funding Rate plus 50 basis points and (c) the sum of the Daily SOFR Rate plus 100 basis points. The increment over the SOFR borrowing rate fluctuates between 100 and 225 basis points, and the increment over the Base Rate fluctuates between 0 and 125 basis points, both of which depend upon the ratio of indebtedness to earnings before interest, taxes, depreciation, and amortization (“EBITDA”), as defined in the line of credit agreement. As of March 31, 2024, the Company has no borrowings against its revolving line of credit. If the Company had borrowed on its revolving line of credit, the borrowing rate as of March 31, 2024, would have been 6.6%. The increment over the SOFR borrowing rate will be 100 basis points for the fourth quarter of fiscal 2024. The fee on the unused balance of the $75 million committed line of credit fluctuates between 15 and 25 basis points. Under the terms of this line of credit, the Company is required to comply with financial covenants that limit the ratio of indebtedness to EBITDA and require a minimum fixed charge ratio. As of March 31, 2024, the entire $75 million revolving line of credit was available for borrowing.

The Company is in compliance with all of its loan covenants as of March 31, 2024.