Note 5 – Debt

At September 30, 2011, the Company had a five-year, $75.0 million senior revolving credit facility ("Credit Facility") with a November 30, 2012 expiration date.

Availability under the senior credit facility was as follows:


	September 30, 2011		June 30, 2011
	(In thousands)
Capacity under the Credit Facility	$	75,000	$	75,000
Letters of credit issued		7,553		7,484

Availability under senior credit facility	$	67,447	$	67,516

The Credit Facility was guaranteed by substantially all of the Company's subsidiaries and was secured by a lien on substantially all of the Company's assets. The credit agreement contained customary affirmative and negative covenants that placed certain restrictions on the Company, including limits on new debt, operating and capital lease obligations, asset sales and certain distributions, including dividends. At September 30, 2011, the Company was in compliance with all affirmative, negative, and financial covenants under the credit agreement.

On November 7, 2011, the Company entered into the Third Amended and Restated Credit Agreement (the "New Credit Agreement"), by and among the Company, JPMorgan Chase Bank, N.A., as Administrative Agent, Lender and Issuing Bank, and the other Lenders party thereto, which replaces the Second Amended and Restated Credit Agreement dated as of November 30, 2006, as previously amended (the "Prior Credit Agreement").

The New Credit Agreement provides for a five-year senior secured revolving credit facility of $125.0 million, which replaces the $75.0 million senior revolving credit facility under the Prior Credit Agreement. The New Credit Agreement may be used for working capital, issuance of letters of credit and other lawful corporate purposes.

As with the Prior Credit Agreement, the New Credit Agreement includes significant covenants and borrowing limitations. Covenants and limitations in the Prior Credit Agreement that did not change and are included in the New Credit Agreement, include but are not limited to, the following:

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We are required to maintain a Senior Leverage Ratio of less than 2.50 to 1.00.

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As with the Prior Credit Agreement, we will be required to maintain a fixed charge coverage ratio greater than or equal to 1.25 to 1.00. However, the numerator will now consist of Consolidated EBITDA less Capital Expenditures and Distributions.

The New Credit Agreement differs in certain respects from the Prior Credit Agreement including, but not limited to, the following:

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The previous financial covenant requiring us to maintain an Asset Coverage Ratio greater than or equal to 1.45 to 1.00 has been eliminated.

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The previous financial covenant requiring us to maintain a Tangible Net Worth of no less than the sum of $110.0 million, plus the net proceeds of any issuance of equity that occurs after November 30, 2008, plus 50% of all positive quarterly net income after November 30, 2008 was eliminated.

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The limitations on capital lease and operating lease obligations have been eliminated.

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The limit on asset dispositions (other than inventory and obsolete or unneeded equipment disposed of in the ordinary course of business) has been increased from $7.5 million per 12-month period to $15.0 million per 12-month period.

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Amounts borrowed under the new credit facility bear interest at LIBOR or an Alternate Base Rate, plus in each case, an additional margin based on the Senior Leverage Ratio. The New Credit Agreement includes additional margin ranges on Alternate Base Rate loans between 0.75% and 1.5% and 1.75% and 2.5% on LIBOR-based loans. The additional margins in the Prior Credit Agreement were between 1.00% and 1.75% on Alternate Base Rate loans and between 2.00% and 2.75% on LIBOR-based loans.

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The New Credit Agreement also permits us to borrow in Canadian dollars with a sublimit of U.S. $15 million. Amounts borrowed in Canadian dollars will bear interest either at the "CDOR Rate," plus an additional margin based on the Senior Leverage Ratio ranging from 1.75% to 2.5%, or at the "Canadian Prime Rate," plus an additional margin based on the Senior Leverage Ratio ranging from 2.25% to 3.0%. The CDOR Rate is equal to the sum of the annual rate of interest which is the rate determined as being the arithmetic average of the quotations of all institutions listed in respect of the relevant CDOR interest period for Canadian Dollar denominated bankers' acceptances, plus 0.1%. The Canadian Prime Rate is equal to the greater of (i) the rate of interest per annum most recently announced or established by JPMorgan Chase Bank, N.A., Toronto Branch as its reference rate in effect on such day for determining interest rates for Canadian Dollar denominated commercial loans in Canada and commonly known as the "prime rate" and (ii) the CDOR Rate plus 1.0%.

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The Unused Credit Facility Fee, which continues to be based on the Senior Leverage Ratio, was reduced from a range of 0.35% to 0.50% under the Prior Credit Agreement to a range of 0.30% to 0.45% under the New Credit Agreement.