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(6) Long-Term Debt
On August 9, 2011, the Company entered into a Revolving Credit agreement with Wells Fargo Bank, National Association 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, 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, National Association and has a maturity date of August 9, 2014 and a variable interest rate of LIBOR plus 1.25 percent (1.50 percent as of September 30, 2011). The term loan has been collateralized by the Companys manufacturing facility in Spanish Fork, Utah.
Long-term debt at September 30, 2011 and December 31, 2010 consists of the following:
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September 30,
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December 31,
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2011
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2010
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Term loan in monthly installments of approximately $284, including interest, secured by real estate
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$
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10,000
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$
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Total long-term debt
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10,000
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Less current installments
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(3,283
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)
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Long-term debt less current installments
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$
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6,717
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$
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The various debt agreements contain restrictions on liquidity, leveraging, 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 the transfer of assets except in the ordinary course of business. The Company is currently in compliance with these debt covenants.
The aggregate maturities of long-term debt for each of the next five years are: $816 in 2011, $3,296 in 2012, $3,346 in 2013 and $2,542 in 2014.
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