Long-Term Debt

Long-term debt at September 30 consists of:



	2015			2014
Revolving credit agreement	$	16,500		$	6,429
Foreign subsidiary borrowings	13,197			—
Capital lease obligations	252			—

Term loan	19,286			4,000
Less: unamortized debt issuance cost	(306		)	—
Term loan less unamortized debt issuance cost	18,980			4,000

Total debt	48,929			10,429

Less – current maturities	(10,503		)	(2,000		)
Total long-term debt	$	38,426		$	8,429

On June 26, 2015 the Company entered into a new Credit and Security Agreement (the "Credit Agreement") with its lender. The new credit facility is comprised of (i) a five year revolving credit facility with a maximum borrowing amount of up to $25,000, which reduces to $20,000 on January 1, 2016, and (ii) a five year term loan of $20,000. Amounts borrowed under the credit facility are secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its non-U.S. subsidiaries. The new term loan is repayable in quarterly installments of $714 beginning September 30, 2015. The amounts borrowed under the Credit Agreement were used to repay the Company's existing revolver and term note, to fund the acquisition of C*Blade on July 1, 2015, as referenced in Note 12 and for working capital and general corporate purposes. The new Credit Agreement also has an accordion feature, which allows the Company to increase the availability by up to $15,000 upon consent of the existing lenders or upon additional lenders being joined to the facility. Borrowings will bear interest at the LIBOR rate, prime rate, or the eurocurrency reference rate depending on the type of loan requested by the Company in each case, plus the applicable margin as set forth in the Credit Agreement.

The new revolver and term loan have a rate based on LIBOR, which were 3.2% and 3.1%, respectively at September 30, 2015. The bank loans are subject to certain customary financial covenants including, without limitation, covenants that require the Company to not exceed a maximum leverage ratio and to maintain a minimum fixed charge coverage ratio. There is also a commitment fee ranging from 0.15% to 0.35%, to be incurred on the unused balance. The Company received a waiver from its Lender related to certain non-financial covenants for fiscal 2015. With the waiver, the Company was in compliance with all covenants contained in its revolving credit facility and term loan as of September 30, 2015. The Company expects to remain in compliance throughout fiscal 2016.

The Company incurred debt issuance costs in connection with the new Credit Agreement in the amount of $724 for the year ended September 30, 2015. There were no prior period debt issuance costs associated with the previous credit agreement. As noted in Note 1, the Company early adopted ASU 2015-03 and ASU 2015-15, which allows the Company to present debt issuance costs on the consolidated balance sheets related to the term note as a direct deduction from the principal amount. As shown above, $306 of debt issuance costs, net of amortization of $17, was capitalized related to the term note. The remaining $381 debt issuance cost relates to the revolver. This portion is shown in the consolidated balance sheet as a deferred charge in other assets, net of amortization of $20 at September 30, 2015.

Prior to the replacement of the revolver and term loan previously discussed, in October 2011, the Company entered into an amendment to its then existing credit agreement with its bank to increase the maximum borrowing amount from $30,000 to $40,000, of which $10,000 was a five (5) year term loan and $30,000 was a five (5) year revolving loan, secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its non-U.S. subsidiaries. The term loan was repayable in quarterly installments of $500 starting December 1, 2011. The term loan was repaid in the third quarter of fiscal year 2015 and replaced by the credit agreement discussed previously.

On July 1, 2015, the Company acquired C*Blade (see Note 12), along with its indebtedness, which consist of working capital credit lines, lending for unsecured borrowings and loans related to research and development activities where C*Blade has been granted long-term financing contracts below market interest rates, totaling $2,027. The benefit of the below-market rate of interest is measured as the difference between the initial carrying value of the loan and the proceeds received. The deferred interest benefit was $84 at September 30, 2015 (of which $25 is classified as non-current).

As of September 30, 2015, the total foreign debt borrowings was $13,197, of this $8,027 bearing interest between 1.0% to 4.0% Euribor rate as of September 30, 2015, of which $2,333 is the current portion. Of the remaining $5,170, $4,393 relates to the unsecured borrowings of the Company's trade receivables for one of its customers and $777 relates to short term debt as of September 30, 2015. The Company receives cash payment for receivables sold. These are uncommitted programs, whereby the Company offers receivables for sale to an unaffiliated financial institution, which are then subject to acceptance by the unaffiliated financial institution. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are not isolated from the Company, and effective control of the receivables is not passed to the unaffiliated financial institution, which does not have the right to pledge or sell the receivables. The Company accounts for the sale of receivables under this agreement as short-term debt and continues to carry the receivables on its consolidated balance sheets. There was $1,987 of short-term borrowings relating to this agreement at September 30, 2015 classified within short-term debt. The carrying value of the receivables pledged as collateral was $3,607 at September 30, 2015.

Payments on long-term debt (excluding capital lease obligations, see Note 9) over the next 5 years are as follows:



	Minimum long-term debt payments

2016	$	5,208
2017	4,814
2018	4,123
2019	4,011
2020	25,343
2021 and thereafter	250
Subtotal	43,749
Plus: amount representing interest (*)	64

Minimum payments including interest	$	43,813