Note 7 - Long-term Debt

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

7.   LONG-TERM DEBT

On February 13, 2019 we entered into a Revolving Credit, Guaranty, and Security Agreement (“Credit Agreement”) with the Huntington National Bank (“Huntington”) as administrative agent. The Credit Agreement provides for a new senior secured asset-based revolving credit facility up to a principal amount of $75 million, which includes a sublimit for the issuance of letters of credit up to $7.5 million (the “Credit Facility”). The Credit Facility may be increased up to an additional $25 million at the Borrowers’ request and the Lenders’ option, subject to customary conditions. The Credit Agreement matures on February 13, 2024. This Credit Agreement replaced our previous financing agreement with PNC Bank (“PNC”).

					Applicable
					Spread Rates for
		Applicable Spread Rates			Domestic Rate
	Average Excess Revolver Availability	for Eurodollar Rate			Revolving
Revolver Pricing Level	for Previous Quarter	Revolving Advances			Advances
I	$25,000,000+		1.00	%		0.50	%
II	$17,500,000 to < 25,000,000		1.25	%		0.50	%
III	$10,000,000 to < 17,500,000		1.50	%		2.50	%
IV	$< 10,000,000		1.75	%		0.00	%

The total amount available under our new Credit Facility is subject to a borrowing base calculation based on various percentages of accounts receivable and inventory. As of December 31, 2020, we had total capacity of $70.8 million.

We had no outstanding borrowings against the Credit Facility for fiscal years ending December 31, 2020 or December 31, 2019.

Credit Facility Covenants

Our Credit Facility contains restrictive covenants which require us to maintain a fixed charge coverage ratio. These restrictive covenants are only in effect upon a triggering event taking place (as defined in the agreement). Our Credit Facility contains restrictions on the amount of dividends that may be paid. During the twelve months ended December 31, 2020, there were no triggering events and the covenant was not in effect for our Credit Facility.

On March 15, 2021, we entered into a senior secured asset-based credit facility with Bank of America, N.A. ("Bank of America"), as agent, for the lenders party thereto and a senior secured term loan facility with TCW Asset Management Company LLC ("TCW"), as agent, for the lenders party thereto, which collectively replaced our existing Credit Agreement with Huntington. Refer to Note 19 for additional information regarding these new credit agreements with Bank of America and TCW.