Debt

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Debt

6. Debt

The following table sets forth our outstanding debt balances (in thousands):

	At March 31, 2019		At December 31, 2018
Revolving credit facility, LIBOR plus 1.50%, maturing in March 2021	$	71,560	$	88,399
Note payable, LIBOR plus 1.50%, maturing in March 2021(1)		8,796		9,243
Note payable, LIBOR plus 1.50%, maturing in March 2021(2)		1,549		1,628
Note payable, greater of 2% or LIBOR plus 2.15%, maturing in April 2022(3)		4,158		4,207
Note payable, LIBOR plus 2.25%, maturing in January 2022(4)		3,622		3,679
Note payable, Prime plus 0.25% or LIBOR plus 2.125%, maturing in March 2021(5)		6,412		6,489
Note payable, Prime plus 0.375% or LIBOR plus 2.25%, maturing in March 2024(6)		17,207		7,308
Note payable, LIBOR plus 3.2%, maturing in May 2025		230		236
Total		113,534		121,189
Less: Total current debt		75,130		91,682
Total non-current debt	$	38,404	$	29,507

(1)	Refer to discussion below regarding the sub-line secured by the building in Santa Monica, California.
(2)	Refer to discussion below regarding the sub-line secured by the building in Woodridge, Illinois
(3)	Relates to a seven-year note, with a 25 year straight-line monthly principal amortization, secured by real property in Irvine, California.
(4)	Relates to a seven-year note, with a 25 year straight-line monthly principal amortization, secured by real property in Lewis Center, Ohio.
(5)	Relates to a five-year note, with a 25 year straight-line monthly principal amortization, secured by real property in New Albany, Ohio.
(6)	Relates to a five-year note, with a 25 year straight-line monthly principal amortization, secured by real property in El Segundo, California.

Line of Credit and Related Notes

We maintain a credit facility, which functions as a working capital line of credit with a borrowing base of inventory and accounts receivable, including certain credit card receivables, and a portion of the value of certain real estate. On January 19, 2016, we entered into a Fourth Amended and Restated Loan and Security Agreement (the “Fourth Amended Loan Agreement”) with certain lenders and Wells Fargo Capital Finance, LLC as administrative and collateral agent (the “Lenders”). On July 7, 2016, we entered into a First Amendment to the Fourth Amended Loan Agreement with the Lenders and on February 24, 2017, we entered into a Second Amendment to the Fourth Amended Loan Agreement with the Lenders. On October 24, 2017, PCM, all of its wholly-owned domestic subsidiaries (collectively with PCM, the “US Borrowers”), all of its Canadian subsidiaries (collectively, the “Canadian Borrowers”) and its PCM UK subsidiary (together with the US Borrowers and the Canadian Borrowers, the “Borrowers”), entered into a Fifth Amended and Restated Loan and Security Agreement (the “Fifth Amended Loan Agreement”) with the Lenders. The Fifth Amended Loan Agreement amends and restates the Fourth Amended Loan Agreement.

The terms of our credit facility, as amended through March 31, 2019, provide for (i) a Maximum Credit, as defined in the credit facility, of $345,000,000; (ii) a sub-line of up to C$40,000,000 as the Canadian Maximum Credit and a sub-line of up to £25,000,000 as the UK Maximum Credit ((i) and (ii) collectively the “Revolving Line”); (iii) a Maturity Date of March 19, 2021; (iv) interest on outstanding balance under the Canadian Maximum Credit based on the Canadian Base Rate (calculated as the greater of CDOR plus one percentage point and the “prime rate” for Canadian Dollar commercial loans, as further defined in the Fifth Amended Loan Agreement) or at the election of the Borrowers, based on the CDOR Rate, plus a margin, depending on average excess availability under the Revolving Line, ranging from 1.50% to 1.75%; (v) interest on outstanding UK balances based on LIBOR plus a margin, depending on average excess availability under the Revolving Line, ranging from 1.50% to 1.75%; (vi) interest on outstanding balance under the Maximum Credit based on the Eurodollar Rate plus a margin, depending on average excess availability under the revolving line, ranging from 1.50% to 1.75%; and (vii) a monthly unused line fee of 0.25% per year on the amount, if any, by which the Maximum Credit, then in effect, exceeds the average daily principal balance of outstanding borrowings during the immediately preceding month. The terms of our credit facility are more fully described in the Fifth Amended Loan Agreement.

The credit facility is collateralized by substantially all of our assets. In addition to the security interest required by the credit facility, certain of our vendors have security interests in some of our assets related to their products. The credit facility has as its single financial covenant a minimum fixed charge coverage ratio (FCCR) requirement in the event an FCCR triggering event has occurred. An FCCR triggering event is comprised of maintaining certain specified daily and average excess availability thresholds. In the event the FCCR covenant applies, the fixed charge coverage ratio is 1.0 to 1.0 calculated on a trailing four-quarter basis as of the end of the last quarter immediately preceding such FCCR triggering event date. At March 31, 2019, we were in compliance with our financial covenant under the credit facility.

Loan availability under the line of credit fluctuates daily and is affected by many factors, including eligible assets on-hand, opportunistic purchases of inventory and availability and our utilization of early-pay discounts. At March 31, 2019, we had $220.5 million available to borrow for working capital advances under the line of credit.

In connection with, and as part of, our revolving credit facility, we maintain a sub-line with a limit of $12.5 million secured by our properties located in Santa Monica, California, with a monthly principal amortization of $149,083 and a sub-line with a limit of $2.2 million secured by our property in Woodridge, Illinois, with a monthly principal amortization of $26,250.

On July 7, 2016, we entered into a Credit Agreement with Castle Pines Capital LLC (“Castle Pines”), which provides for a credit facility (“Channel Finance Facility”) to finance the purchase of inventory from a list of approved vendors. The aggregate availability under the Channel Finance Facility is variable and discretionary, but has initially been set at $35 million. Each advance under the Channel Finance Facility will be made directly to an approved vendor and must be repaid on the earlier of (i) the payment due date as set by Castle Pines or (ii) the date (if any) when the inventory is lost, stolen or damaged. No interest accrues on advances paid on or prior to payment due date. The Channel Finance Facility is secured by a lien on certain of our assets, subject to an intercreditor arrangement with the Lenders. The Channel Finance Facility has an initial term of one year, but shall be automatically renewed for one year periods from year to year thereafter unless terminated earlier by either party within reasonable notice periods. As of March 31, 2019, we had no outstanding balance under the Channel Finance Facility.

At March 31, 2019, the effective weighted average annual interest rate on our outstanding amounts under the credit facility, term note and variable interest rate notes payable was 4.06%.

The carrying amounts of our line of credit borrowings and notes payable approximate their fair value based upon the current rates offered to us for obligations of similar terms and remaining maturities.

The following table sets forth the maturities of our outstanding debt balances as of March 31, 2019 (in thousands):

	Remainder of 2019		2020		2021		2022		2023		Thereafter		Total
Total long-term debt obligations	$	2,677	$	3,563	$	13,685	$	7,335	$	728	$	13,986	$	41,974
Revolving credit facility		71,560		—		—		—		—		—		71,560
Total	$	74,237	$	3,563	$	13,685	$	7,335	$	728	$	13,986	$	113,534