Short And Long-Term Debt

9 Months Ended

Sep. 30, 2011

Short And Long-Term Debt [Abstract]

Short And Long-Term Debt

7.    Short and Long-Term Debt

Short and long-term debt is summarized as follows:

	September 30, 2011	December 31, 2010
Domestic Asset-Based Revolving Credit Facility	$   3,584	$    3,920
Foreign Overdraft and Letter of Credit Facility	1,687	1,377
Domestic Term-Loan	3,750	2,563
Note Payable Datrix Purchase	350	700
Total Debt	9,371	8,560
Less: Current maturities	(2,727)	(2,095)
Total Long-Term Debt	$   6,644	$   6,465

Domestic Credit Facilities

To finance a portion of the Company's acquisition of Jon Barron, Inc. doing business as Datrix ("Datrix") and replace the Company's existing credit facilities with Bank of America, including capital leases, the Company and its domestic subsidiaries entered into a credit facility with The PrivateBank and Trust Company on August 13, 2009. The credit facility, as amended, provides for:

§an $8,000 revolving credit facility, with a $200 subfacility for letters of credit. Under the revolving credit facility, the availability of funds depends on a borrowing base composed of stated percentages of the Company's eligible trade receivables and eligible inventory, and eligible equipment less a reserve; and

§a term loan in the original amount of $4,000.

In August 2011, the Company amended the credit facility with The PrivateBank. Per the terms of the amended agreement, the maturity of both the term loan and the revolving credit facility was extended to expire on August 13, 2014. Further, the term loan was increased from its then current balance of $2,225 to $4,000. In addition, the amendment reset certain financial covenants. The Company was in compliance with all applicable covenants under the credit facility, as amended, as of September 30, 2011.

Loans under the credit facility are secured by a security interest in substantially all of the assets of the Company and its domestic subsidiaries including a pledge of the stock of its domestic subsidiaries. Loans under the credit facility bear interest at varying rates based on the Company's leverage ratio of funded debt / EBITDA, at the option of the Company, at:

§the London InterBank Offered Rate ("LIBOR") plus 3.00% - 4.00%, or

§the base rate, which is the higher of (a) the rate publicly announced from time to time by the lender as its "prime rate" and (b) the Federal Funds Rate plus 0.5%, plus 0.25% - 1.25% depending on the Company's leverage ratio.

Weighted average interest on the domestic asset-based revolving credit facility was 3.59% for the nine months ended September 30, 2011 and 4.41% for the year ended December 31, 2010. The outstanding balance of the revolving credit facility was $3,584 and $3,920 at September 30, 2011 and December 31, 2010, respectively. The total remaining availability on the domestic revolving credit facility was approximately $3,114 and $2,072 at September 30, 2011 and December 31, 2010, respectively. The credit facility expires on August 13, 2014 and all outstanding borrowings will become due and payable.

The outstanding principal balance of the term loan, as amended, is payable in quarterly installments of $250, commencing with the calendar quarter ended September 30, 2011.  Any remaining principal and accrued interest is payable on August 13, 2014. IntriCon is also required to use 100% of the net cash proceeds of certain asset sales (excluding inventory and certain other dispositions), sale of capital securities or issuance of debt to pay down the term loan.

Foreign Credit Facility

In addition to its domestic credit facilities, the Company's wholly-owned subsidiary, IntriCon, PTE LTD., entered into an international senior secured credit agreement with Oversea-Chinese Banking Corporation Ltd. that provides for a $1,977 line of credit. The international credit agreement was modified in August 2010 and again in August 2011 to allow for an additional total of $736 in borrowing under the existing base to fund the Singapore facility relocation, Batam facility construction and various other capital needs. Borrowings bear interest at a rate of .75% to 2.5% over the lender's prevailing prime lending rate. Weighted average interest on the international credit facilities was 4.24% for the nine months ended September 30, 2011 and 4.14% for the year ended December 31, 2010. The outstanding balance was $1,687 and $1,377 at September 30, 2011 and December 31, 2010, respectively. The total remaining availability on the international senior secured credit agreement was approximately $1,026 and $600 at September 30, 2011 and December 31, 2010, respectively.

Datrix Promissory Note

A portion of the purchase price of the Datrix acquisition was paid by the issuance of a promissory note to the seller in the amount of $1,050 bearing annual interest at 6%. The remaining principal amount of the promissory note is payable in one installment of $350 on August 13, 2012. The note bears annual interest at 6% and is payable with each installment of principal as set forth above. The Company made the first two installment payments, including interest, of $413 and $395 on August 13, 2010 and August 13, 2011, respectively.