Revolving Credit Facility |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Debt Disclosure [Abstract] | |
| Revolving Credit Facility |
Revolving Credit Facility
On July 11, 2017, we entered into a revolving credit agreement with Bank of America, N.A., with a borrowing limit of $25.0 million, that matures on July 11, 2020 (the “Credit Agreement”). We pay interest on any borrowings under the Bank of America Credit Agreement at LIBOR plus 1.25 percent (3.74 percent and 3.73 percent as of March 31, 2019 and December 31, 2018, respectively), and an annual commitment fee of 0.20 percent on the unused portion of the commitment. We are required to settle our net borrowings under the Credit Agreement only upon maturity, and as a result, have classified our outstanding borrowings as non-current on our condensed consolidated balance sheet as of March 31, 2019. At March 31, 2019 and December 31, 2018, the outstanding balance under the revolving credit facility was $0.
The Credit Agreement contains customary financial covenants, including financial covenants relating to our solvency, leverage, and minimum EBITDA. In addition, the Credit Agreement restricts certain capital expenditures, lease expenditures, other indebtedness, liens on assets, guarantees, loans and advances, dividends, and merger, consolidation and the transfer of assets except as permitted in the Credit Agreement. The Credit Agreement is collateralized by our manufacturing facility, accounts receivable balance, inventory balance and other assets. We were in compliance with the debt covenants set forth in the Credit Agreement as of March 31, 2019.
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