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Long-Term Debt
 6 Months Ended
Jun. 30, 2011
Long-Term Debt

5. Long-Term Debt

    June 30,     December 31,  
    2011     2010  
    ($000’s omitted)  
    Industrial Development Revenue Bonds; secured by an equivalent            
letter of credit from a bank with interest payable monthly            
at a floating rate (0.29% at June 30, 2011) (A)   $ 3,130     $ 3,130  
                 
    Term loan payable to a financial institution;                
interest at LIBOR plus 2%, (2.19% at June 30, 2011);                
quarterly principal payments of $26,786 through the                
fourth quarter of 2011     53       107  
                 
    Secured term loan payable to a government agency;                
monthly payments of $1,950 including interest                
fixed at 3% payable through fourth quarter of 2015     97       107  
                 
    Secured term loan payable to a government agency;                
monthly principal payments of approximately $2,100 with                
interest waived payable through second quarter of 2012     24       37  
      3,304       3,381  
Less current portion     (268)       (323)  
    $ 3,036     $ 3,058  
                 

 

 

(A) The Industrial Development Revenue Bonds were issued by a government agency to finance the construction of the Company’s headquarters/advanced technology facility. Annual sinking fund payments of $170,000 commenced December 1, 2000 and continue through 2013, with a final payment of $2,620,000 due December 1, 2014. The Company has agreed to reimburse the issuer of the letter of credit if there are draws on that letter of credit. The Company pays the letter of credit bank an annual fee of 1% of the amount secured thereby and pays the remarketing agent for the bonds an annual fee of 1/4% of the principal amount outstanding. The Company’s interest under the facility capital lease has been pledged to secure its obligations to the government agency, the bank and the bondholders. 

The Company also has an unsecured $1,000,000 line of credit on which there was no balance outstanding at June 30, 2011 and December 31, 2010. 

Certain lenders require the Company to comply with debt covenants as described in the specific loan documents, including a debt service ratio. At June 30, 2011 and December 31, 2010, the Company was in compliance with its debt covenants.