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Short-Term And Long-Term Debt
9 Months Ended
Mar. 31, 2015
Short-Term And Long-Term Debt [Abstract]  
Short-Term And Long-Term Debt

8.Short-Term and Long-Term Debt      

 

The Company acquired bank debt of $2.1 million as part of the purchase of Coord3.  During March 2015, the Company paid off $1.7 million of this debt leaving an outstanding balance of $326,000The short-term bank debt of $326,000 is payable on or before July 25, 2015, with interest accruing at 6.5%.  The short-term bank debt is unsecured and is guaranteed by one of the owners of Coord3 Industries s.r.l.  The Company had no bank debt outstanding at June 30, 2014. 

 

The Company has a $6.0 million secured credit agreement with Comerica Bank (“Credit Agreement”) which expires on November 2, 2015. Proceeds under the Credit Agreement may be used for working capital and capital expenditures.  Security for the Credit Agreement is substantially all non-real estate assets of the Company held in the United States.  Borrowings are designated as a Libor-based Advance or as a Prime-based Advance if the Libor-based Advance is not available.  Interest on Libor-based Advances is calculated at 2.35% above the Libor Rate offered at the time for the period chosen, and is payable on the last day of the applicable period.  Quarterly, the Company pays a commitment fee of 0.15% per annum on the average daily unused portion of the revolving credit commitment.  On January 29, 2015, the Company entered into a Seventh Amendment to the Credit Agreement which provides for Comerica Bank’s consent to the acquisitions announced by the Company on January 29, 2015, reduces the minimum Tangible Net Worth requirement to $31.0 million and provides an Advance Formula Agreement for borrowings under the Credit Agreement. The Company was in compliance with the Tangible Net Worth financial covenant at March 31, 2015The Advance Formula Agreement limits borrowings to the lesser of $6.0 million or 80% of eligible accounts receivable, which was $2.9 million at  March 31, 2015.  The Company is permitted to declare dividends of up to $2.5 million in any fiscal year provided the Company maintains the required minimum Tangible Net Worth.  The Company is also required to have no advances outstanding under the Credit Agreement for 30 days (which need not be consecutive) during each calendar year. 

 

At March 31, 2015, the Company's German subsidiary (“GmbH”) had an unsecured credit facility totaling 350,000  euros (equivalent to approximately $380,000).  The facility allows 100,000  euros to be used to finance working capital needs and equipment purchases or capital leases.  The facility allows up to 250,000  euros to be used for providing bank guarantees.  Any borrowings for working capital needs will bear interest at 4.25%.  Any outstanding bank guarantees will bear interest at 2.0%.  The GmbH credit facility is cancelable at any time by either GmbH or the bank and any amounts then outstanding would become immediately due and payable.  At March 31, 2015 and June 30, 2014, GmbH had no borrowings or bank guarantees outstanding.