Long-Term Debt

Long-term debt consists of:



	December 31, 2015			September 30, 2015
Revolving credit agreement	$	10,370		$	16,500
Foreign subsidiary borrowings	12,830			13,197
Capital lease obligations	211			252

Term loan	18,571			19,286
Less: unamortized debt issuance cost	(288		)	(306		)
Term loan less unamortized debt issuance cost	18,283			18,980
Total Debt	41,694			48,929

Less – current maturities	(10,816		)	(10,503		)
Total long-term debt	$	30,878		$	38,426

On June 26, 2015 the Company entered into a new Credit and Security Agreement (the "Credit Agreement") with a new 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 starting September 30, 2015. The amounts borrowed under the Credit Agreement were used to repay the Company's previous revolver and term note, to fund the acquisition of C*Blade S.p.A. Forging & Manufacturing ("C*Blade" - see Note 8) and for working capital and general corporate purposes. The 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 revolver has a rate based on LIBOR plus 2.75% spread and a Prime rate which resulted in a weighted average rate of 3.1% at December 31, 2015 and the term loan has a rate based on LIBOR plus 2.75% spread which was 3.4% at December 31, 2015. The new loans are subject to certain customary financial covenants including, without limitation, covenants that require the Company to not exceed a maximum debt to EBITDA 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 was in compliance with loan covenants required to be met as of December 31, 2015. Subsequent to December 31, 2015, certain non-financial covenants that previously were included in the September 30, 2015 waiver had expired. As such, the Company obtained a waiver from its Lender and is in compliance with all covenants contained in its revolving credit facility and term loan. The Company expects to remain in compliance throughout fiscal 2016.

As of December 31, 2015, the total foreign debt borrowings was $12,830, of which $2,270 is the current portion. Interest rates range between 1.0% to 4.0% Euribor rate. The remaining $5,608 consists of short term borrowings and the factoring of a portion the Company's trade receivables. The factoring programs are uncommitted, 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 $1,001 of short-term borrowings relating to this agreement at December 31, 2015 classified within short-term debt. The carrying value of the receivables pledged as collateral was $2,448 at December 31, 2015.