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Credit Facility
3 Months Ended
Jul. 31, 2011
Credit Facility  
Credit Facility

5.     Credit Facility

 

On June 30, 2011, the Company entered into a revolving credit note agreement with Wells Fargo. Under the terms of the agreement, the Company is entitled to borrow up to $8.0 million. The total amount that can be borrowed under the revolver is based on a multiplier factor of the trailing twelve months of maintenance revenue.  As of July 31, 2011, the Company was eligible to borrow the entire $8.0 million.  Interest expense is recorded on funds borrowed at the prevailing LIBOR rate plus 5.00% per annum with a minimum rate of 6.25% (6.25% as of July 31, 2011) and has a maturity date of June 30, 2015.  As of July 31, 2011, there was $6.5 million outstanding on the revolver.