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Note 4 - Credit Arrangements
3 Months Ended
Sep. 30, 2011
Schedule of Line of Credit Facilities [Table Text Block]
Note 4 - Credit Arrangements     

Effective August 25, 2011, we entered into a new revolving credit facility of up to $35 million which expires in August 2015.  At September 30, 2011, we had $1.1 million borrowing availability based on our accounts receivable and inventory levels, outstanding letters of credit totaling $367,500, and $23.6 million outstanding borrowings under the facility.  Borrowings and letters of credit bear interest at either the daily three-month LIBOR rate plus 3.75% or a fixed LIBOR rate for three months plus 3.75%.

The credit facility is guaranteed by substantially all of our subsidiaries and is secured by substantially all of our assets and those of our subsidiaries.  It requires the maintenance of a specified profitability and fixed charge coverage and a minimum availability, which, if not met, could adversely impact our liquidity.  The facility contains customary representations and warranties and we have agreed to certain affirmative covenants, including reporting requirements.  The facility also limits our ability to engage in certain actions without the lender’s consent, including, repurchasing our common stock, entering into certain mergers or consolidations, guaranteeing or incurring certain debt, engaging in certain stock or asset acquisitions, paying dividends, making certain investments in other entities, prepaying debt, and making certain property transfers.

The maximum line of credit under the credit facility, which includes the revolver and letters of credit, is $35 million.  The credit facility is asset-based and the available line of credit may be limited pursuant to certain borrowing base limitations, including (1) the amount of certain of our eligible accounts, (2) the amount of our eligible accounts with our largest customer, (3) the value of our eligible inventory, which is more specifically determined in part based on specific periods during our fiscal year, and (4) the amount of our borrowing base reserve.

Our previous $27.5 million credit facility for borrowings and letters of credit was set to expire in October 2012 and bore interest at the daily adjusting one-month LIBOR rate plus 4.5% or, if such rate was not available under the terms of the credit facility note, the lender’s prime rate plus 2%.  This facility was terminated on August 25, 2011 and all borrowings were paid and obligations were fulfilled.

Our Canadian subsidiary had a CAD $1.4 million credit facility (direct advances limited to U.S. $1.1 million) with interest at the lender’s prime or U.S. base rates.  The facility was secured by cash, credit balances, and/or deposit instruments of CAD $1.4 million.  In connection with our new $35 million credit facility, this facility was terminated and all borrowings were paid and obligations were fulfilled.