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(5) Long-Term Debt
On August 9, 2011, the Company entered into a Revolving Credit Agreement with Wells Fargo Bank, N. A., that permits the Company to borrow up to $15,000 through August 9, 2013, bearing interest at LIBOR plus 1.25 percent. The Company must pay an annual commitment fee of 0.25 percent on the unused portion of the commitment. At September 30, 2012 and December 31, 2011, the Company had $15,000 available under this facility.
A term loan of $10,000 was obtained in conjunction with the Revolving Credit Agreement with Wells Fargo Bank, N. A., and has a maturity date of August 9, 2014, a variable interest rate of LIBOR plus 1.25 percent (1.50 percent as of September 30, 2012) and monthly amortization of principal. The term loan is collateralized by the Company’s manufacturing facility in Spanish Fork, Utah.
Long-term debt at September 30, 2012 and December 31, 2011 consists of the following:
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|
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September 30,
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December 31,
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|
|
|
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2012
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|
2011
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|
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Term loan due in monthly installments of approximately $285, including interest, secured by real estate
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$
|
6,726
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|
$
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9,190
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Less current installments
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(3,334
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)
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(3,296
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)
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Long-term debt
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$
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3,392
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|
$
|
5,894
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The Revolving Credit Agreement contains restrictions on liquidity, leverage levels, minimum net income and consecutive quarterly net losses. In addition, the agreements restrict capital expenditures, lease expenditures, other indebtedness, liens on assets, guaranties, loans and advances, and the merger, consolidation and transfer of assets except in the ordinary course of business. The Company is currently in compliance with these debt covenants.
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