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NOTE 8: 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 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, 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 December 31, 2011). The term loan is collateralized by the Company’s manufacturing facility in Spanish Fork, Utah.
Long-term debt consists of the following:
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As of December 31,
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|
2011
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|
2010
|
|
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Term loan due in monthly installments of approximately $284, including interest, secured by real estate
|
|
$
|
9,190
|
|
$
|
—
|
|
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Total long-term debt
|
|
9,190
|
|
—
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|
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Less current installments
|
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(3,296
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)
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—
|
|
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Long-term debt less current installments
|
|
$
|
5,894
|
|
$
|
—
|
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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 are as follows: $3,296 in 2012, $3,346 in 2013 and $2,548 in 2014.
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