Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.10.0.1
Debt
3 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Debt

Note (5) - Debt: Long-term debt as of September 30, 2018 and June 30, 2018 are as follows (in thousands):

    September 30,
2018
  June 30,
2018
Term Loan   $ 6,076     $ 6,375  
Revolving Line of Credit     15,346       3,697  
Less: unamortized discount and deferred financing costs     (55 )     (60 )
Total debt, net     21,367       10,012  
     Less: current maturities of long-term debt     (1,195 )     (1,195 )
Total long-term debt   $ 20,172     $ 8,817  

 

As of September 30, 2018, the Company had a credit facility (the “Credit Facility”), which included a revolving line of credit (the “Revolving Line of Credit”) of up to $20.0 million (subject to a cap determined using an asset-based formula, which could limit the amount available for borrowing under the revolving line of credit to a lesser amount) and a term loan (the “Term Loan”). As of September 31, 2018, $15.3 million was outstanding under the Revolving Line of Credit and $6.1 million was outstanding under the Term Loan. Interest on the outstanding principal amount of borrowings under the Credit Facility accrued at an annual rate equal to the daily one-month LIBOR, plus (i) 2.25% in the case of borrowings under the Revolving Line of Credit and (ii) 2.85% in the case of borrowings under the Term Loan. In addition to interest payments, the Company was required to make monthly principal payments on borrowings outstanding under the Term Loan, with the balance due upon maturity. As of September 30, 2018, the required principal payments were $100,000 per month. The Credit Facility had a term of five years and a maturity date of October 10, 2021.

The obligations of the Company under the Credit Facility were secured by substantially all of the assets of the Company and its subsidiaries. In addition, the Company’s subsidiaries jointly and severally guaranteed the performance of the Company’s payment and other obligations under the Credit Facility. The Credit Facility contained certain covenants, including affirmative covenants which required the Company to meet certain financial criteria, including a fixed charge coverage ratio, an asset coverage ratio, a senior leverage ratio and a total leverage ratio. At September 30, 2018, the Company was in compliance with all Credit Facility covenants and $4.7 million was available for borrowing under the Revolving Line of Credit.

 

On November 2, 2018, the Company entered into a new credit agreement and, in connection therewith, repaid all outstanding amounts under, and terminated, the Credit Facility. See Note 12 for additional information regarding the agreement.