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Short-term and Long-term Debt Obligations | 3 Months Ended
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Sep. 30, 2016
Debt Disclosure [Abstract] |
Short-term and Long-term Debt Obligations | Short-term and Long-term Debt Obligations Short-term and long-term obligations as of September 30, 2016 and June 30, 2016 consisted of the following (in thousands):
| September 30, |  | June 30,
| 2016 |  | 2016
Line of credit: |  |  |
Bank of America (1) | $ | 11,199 |  |  | $ | 62,199 |
CTBC Bank | 18,800 |  |  | 10,100 |
Total line of credit | 29,999 |  |  | 72,299 |
Term loans: |  |  |
Bank of America (1) | 47,500 |  |  | 933 |
CTBC Bank | 21,061 |  |  | 20,357 |
Total term loans | 68,561 |  |  | 21,290 |
Total debt | 98,560 |  |  | 93,589 |
Less: debt issuance costs | (365 | ) |  | — |
Total debt, net of debt issuance costs | 98,195 |  |  | 93,589 |
Current portion, net of debt issuance costs | (60,983 | ) |  | (53,589 | )
Long-term portion, net of debt issuance costs | $ | 37,212 |  |  | $ | 40,000 |
(1) In July 2016, $50,000,000 of the revolving line of credit was refinanced to a five-year term loan under the new credit agreement with Bank of America and was reclassified to long-term loan at September 30, 2016 and June 30, 2016. Activities under Revolving Lines of Credit and Term Loans Bank of America In June 2015, the Company entered into an amendment to the existing credit agreement with Bank of America N.A. ("Bank of America") which provided for (i) a $65,000,000 revolving line of credit facility that would have matured on November 15, 2015 and (ii) a five-year $14,000,000 term loan facility. The term loan is secured by three buildings located in San Jose, California and the principal and interest were payable monthly through September 30, 2016 with an interest rate at the LIBOR rate plus 1.50% per annum. The Company extended the revolving line of credit to mature on June 30, 2016. In June 2016, the Company entered into a new credit agreement with Bank of America, which provided for (i) a $55,000,000 revolving line of credit facility including a $5,000,000 letter of credit sublimit that matures on June 30, 2017 and (ii) a five-year $50,000,000 term loan facility. This revolving line of credit facility replaced the existing revolving line of credit facility with Bank of America. This additional term loan is secured by seven buildings located in San Jose, California and the property, plant and equipment and the inventory in those buildings. The principal and interest of the term loan are payable monthly through June 30, 2021 with an interest rate at the LIBOR rate plus 1.25% per annum. The interest rate for the revolving line of credit under the above credit agreements with Bank of America is at the LIBOR rate plus 1.25% per annum. The LIBOR rate was 0.52% at September 30, 2016. The letter of credit is charged at 1.25% per annum. In July 2016, the Company received $50,000,000 term loan proceeds from Bank of America under the new credit agreement with an interest rate at 1.71% per annum and paid down the outstanding amounts under the revolving line of credit with Bank of America. In June 2016, the Company also entered into a separate credit agreement with Bank of America, which provided for a revolving line of credit of $10,000,000 for the Taiwan subsidiary that matures on June 30, 2017. The interest rate of the revolving line of credit is equal to a minimum of 0.9% per annum plus the lender's cost of funds. As of September 30, 2016 and June 30, 2016, the total outstanding borrowings under the Bank of America term loan was $47,500,000 and $933,000, respectively. The total outstanding borrowings under the Bank of America lines of credit was $11,199,000 and $62,199,000 as of September 30, 2016 and June 30, 2016, respectively. The interest rates for these loans ranged from 1.08% to 1.77% per annum at September 30, 2016 and from 1.02% to 1.96% per annum at June 30, 2016, respectively. As of September 30, 2016, the amount of the unused revolving lines of credit with Bank of America under the new credit agreements was $53,801,000. In October 2016, the Company drew an additional $30,000,000 from Bank of America revolving line of credit with interest rates ranging from 2.14% to 3.75% per annum to support the Company's growth and expansion of its business in the Netherlands. CTBC Bank In November 2015, the Company entered into an amendment to the existing credit agreement with CTBC Bank Co., Ltd ("CTBC Bank") that provides for (i) a 12-month NTD$700,000,000 or $22,017,000 U.S. dollar equivalent term loan secured by the land and building located in Bade, Taiwan with an interest rate equal to the lender's established NTD interest rate plus 0.25% per annum which is adjusted monthly and (ii) a 12-month revolving line of credit up to 80.00% of eligible accounts receivable in an aggregate amount of up to $17,000,000 with an interest rate equal to the lender's established USD interest rate plus 0.30% per annum which is adjusted monthly. The total borrowings allowed under the credit agreement are capped at NTD$1,000,000,000 or $30,340,000 U.S. dollar equivalent. In January 2016, the Company extended the revolving line of credit to mature on March 31, 2016. In April 2016, the Company entered into a credit agreement with CTBC Bank Co., Ltd that provides for (i) a 12-month NTD$700,000,000 or $21,620,000 U.S. dollar equivalent term loan facility secured by the land and building located in Bade, Taiwan with an interest rate equal to the lender's established NTD interest rate plus 0.25% per annum which is adjusted monthly. This term loan facility also includes a 12-month customs bond up to NTD$100,000,000 or $3,089,000 U.S. dollar equivalent with an annual fee equal to 0.5% per annum, and (ii) a 12-month revolving line of credit up to 80.00% of eligible accounts receivable in an aggregate amount of up to $40,000,000 with an interest rate equal to the lender's established USD interest rate plus 0.30% per annum which is adjusted monthly. The total borrowings allowed under the credit agreement are capped at $40,000,000. The credit agreement matures on March 31, 2017. The total outstanding borrowings under the CTBC Bank term loan was denominated in Taiwanese dollars and was translated into U.S. dollars of $21,061,000 and $20,357,000 at September 30, 2016 and June 30, 2016, respectively. At September 30, 2016 and June 30, 2016, the total outstanding borrowings under the CTBC Bank revolving line of credit was $18,800,000 and $10,100,000, respectively, in U.S. dollars. The interest rate for these loans ranged from 0.89% and 1.40% at September 30, 2016 and 0.90% and 1.25% per annum at June 30, 2016. At September 30, 2016, available for future borrowing under this credit agreement was $139,000. Covenant Compliance The new credit agreement with Bank of America contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company and its subsidiaries. The new credit agreement contains certain financial covenants, including the following:
• | Not to incur on a consolidated basis, a net loss before taxes and extraordinary items for any two consecutive fiscal quarters;
• | The Consolidated Leverage Ratio, as defined in the agreement, as of the end of any fiscal quarter, measured for the most recently completed twelve (12) months of the Company, shall not be greater than 2.00;
• | The domestic unencumbered liquid assets, as defined in the agreement, maintained in accounts within the United States shall have an aggregate market value of not less than $30,000,000, measured quarterly as of the last day of each fiscal quarter.
As of September 30, 2016 and June 30, 2016, total assets of $959,924,000 and $934,625,000, respectively, collateralized the line of credit with Bank of America under the new credit agreement, which represent the total assets of the United States headquarter company, except for seven buildings located in San Jose, California and property, plant and equipment and inventory in those buildings. As of September 30, 2016 and June 30, 2016, total assets collateralizing the term loan with Bank of America under the new credit agreement were $82,006,000 and $59,258,000, respectively. As of September 30, 2016, the Company was in compliance with all financial covenants associated with the credit agreements with Bank of America. As of September 30, 2016 and June 30, 2016, the land and building located in Bade, Taiwan with a value of $26,691,000 and $26,804,000, respectively, collateralized the term loan with CTBC Bank. There are no financial covenants associated with the term loan with CTBC Bank at September 30, 2016.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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