Note 7 – Long-Term Debt

Long-term debt consists of the following:

	March 31 2018		December 31 2017
In thousands	March 31 2018		December 31 2017
8¼% Limited convertible senior subordinated notes due 2012	$	387	$	387
9½% Subordinated debentures due 2012		220		220
Revolving credit line		2,067		2,722
Term loan		740		790
Term loans - related party		1,000		1,000
Forgivable loan		650		650
Total debt		5,064		5,769
Less deferred financing costs		172		206
Net debt		4,892		5,563
Less portion due within one year		3,374		4,029
Net long-term debt	$	1,518	$	1,534

On July 12, 2016, the Company and its wholly-owned subsidiaries Trans-Lux Display Corporation, Trans-Lux Midwest Corporation and Trans-Lux Energy Corporation (the “Borrowers”) entered into a credit and security agreement, as subsequently amended on various dates, the latest being on March 14, 2018 (collectively, the “Credit Agreement”) with CNH Finance Fund I, L.P. (“CNH”) as lender, which expires on July 12, 2019. Under the Credit Agreement, the Company is able to borrow up to an aggregate of $4.0 million, which includes (i) up to $3.0 million of a revolving loan, at an interest rate of prime plus 6.0% (10.75% at March 31, 2018), which was previously prime plus 4.0% (8.50% at December 31, 2017) and (ii) a $1.0 million term loan, at an interest rate of prime plus 6.0% (10.75% at March 31, 2018 and December 31, 2017). Interest under the agreement is payable monthly in arrears. The availability under the revolving loan is calculated based on certain percentages of eligible receivables and inventory.

The Credit Agreement contains financial and other covenant requirements, including, but not limited to, financial covenants that require the Borrowers to maintain a fixed charge coverage ratio and a loan turnover rate. In connection with the Eighth Amendment to the Credit Agreement dated as of March 14, 2018, CNH waived the Company’s anticipated non-compliance with these financial covenants through March 31, 2018.

The Company has outstanding $387,000 of Notes which are no longer convertible into common shares. The Notes matured as of March 1, 2012 and are currently in default. As of March 31, 2018 and December 31, 2017, the Company had accrued $274,000 and $266,000, respectively, of interest related to the Notes, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.

The Company has outstanding $220,000 of Debentures. The Debentures matured as of December 1, 2012 and are currently in default. As of March 31, 2018 and December 31, 2017, the Company had accrued $174,000 and $169,000, respectively, of interest related to the Debentures, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.

On May 23, 2017, the Company received $650,000 structured as a forgivable loan from the City of Hazelwood, Missouri. The loan will be forgiven on a pro-rata basis if predetermined employment levels are attained and would expire on April 1, 2024. If the Company attains the employment levels required by the agreement, there is no interest due, otherwise interest accrues at a rate of prime plus 2.00% (6.75% at March 31, 2018). In February 2018, in accordance with the agreement, the Company requested a 1-year extension of the terms of the agreement, which was approved by the City of Hazelwood in March 2018, so the agreement now terminates on April 1, 2025.