Long-Term Debt

Long-term debt consists of:



	June 30, 2016			September 30, 2015
Revolving credit agreement	$	11,713		$	16,500
Foreign subsidiary borrowings	10,650			13,197
Capital lease obligations	163			252

Term loan	17,143			19,286
Less: unamortized debt issuance cost	(257		)	(306		)
Term loan less unamortized debt issuance cost	16,886			18,980
Total Debt	39,412			48,929

Less – current maturities	(9,507		)	(10,503		)
Total long-term debt	$	29,905		$	38,426

On June 26, 2015 the Company entered into a 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 reduced 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 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 a 2.75% spread and a prime rate which resulted in a weighted average rate of 3.7% at June 30, 2016 and the term loan has a rate of 3.4% at June 30, 2016, which was based on LIBOR plus a 2.75% spread. This rate becomes an effective fixed rate of 3.9% after giving effect to the interest rate swap agreement. There is also a commitment fee ranging from 0.15% to 0.35% to be incurred on the unused balance.

Under the Company's Credit Agreement, the Company is subject to certain customary covenants. These include, without limitation, covenants that require maintenance of certain specified financial ratios, including that the Company not exceed a maximum debt to EBITDA ratio and maintain a minimum fixed charge coverage ratio. On August 5, 2016, the Company entered into an agreement with its lender to waive its compliance with loan covenants as of June 30, 2016 and to amend its financial covenants for future periods.

As of June 30, 2016, the total foreign debt borrowings was $10,650, of which $6,650 is the current portion. Current debt consist of $4,318 of short-term borrowings, $2,147 is the current portion of long-term debt, $131 of factoring and $54 of capital leases. Interest rates on the term note are based on Euribor rates which range from 1.0% to 4.0%. 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 pledge of receivables under this agreement as short-term debt and continues to carry the receivables on its consolidated condensed balance sheets. There was $131 of short-term borrowings relating to this agreement at June 30, 2016 classified within short-term debt. The carrying value of the receivables pledged as collateral was $422 at June 30, 2016.