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Bank borrowings | 12 Months Ended
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Jun. 30, 2019
Debt Disclosure [Abstract] |
Bank borrowings | Short-term borrowing On March 21, 2019, the JV Company entered into a one-year loan agreement with China Everbright Bank in China to provide a loan for Chinese Renminbi (RMB) 20 million, or $3.0 million based on currency exchange rate between RMB and U.S. Dollar on March 31, 2019 at fixed interest rate of 5.44% per annum. Interest payments are due monthly with the entire principal due on March 21, 2020. As of June 30, 2019, the outstanding balance under the loan was 20 million RMB (equivalent of $2.9 million based on the currency exchange rate as of June 30, 2019). On November 29 and December 4, 2018, the JV Company entered into two one-year loan agreements with China Merchant Bank in China to provide loans for RMB 80 million and 20 million, respectively, or $14.5 million in total based on currency exchange rate between RMB and U.S. Dollar on December 31, 2018 at varying interest rates. Interest payments are due monthly and quarterly with the entire principal due not later than December 18 and December 5, 2019, respectively. As of June 30, 2019, the outstanding balances under the loans were 80 million RMB and 20 million (equivalent of $14.6 million in total based on the currency exchange rate as of June 30, 2019). On November 16, 2018, the Company's subsidiary in China entered into a line of credit facility with Industrial and Commercial Bank of China, which expires on September 30, 2019. The purpose the credit facility is to provide short-term borrowings. The Company can borrow up to approximately RMB 72.0 million or $10.3 million based on currency exchange rate between RMB and U.S. Dollar on November 16, 2018. In November 2018 and April, 2019, the Company borrowed $5.0 million and $10.5 million, respectively under this line with an interest rate of 3.64% and 4.57%, per annum, respectively. The amount of $5.0 million and $10.5 million were repaid in December 2018 and June 2019. As of June 30, 2019, there was no outstanding balance under the line of credit. Credit Facilities On May 9, 2018 (the “Effective Date”), the JV Company entered into a lease finance agreement and a security agreement (the “Agreements”) with YinHai Leasing Company and China Import/Export Bank (the “Lenders”). Pursuant to the Agreements, the Lenders agree to provide an aggregate of Chinese Renminbi (RMB) 400.0 million, or $62.8 million based on the currency exchange rate between RMB and U.S. Dollar on the Effective Date, of financing to the JV Company (the “Lease Financing”). In exchange for the Lease Financing, the JV Company agrees to transfer title of its assembly and testing equipment to the Lenders, and the Lenders lease such equipment to the JV Company under a five-year lease arrangement, pursuant to which the JV Company makes quarterly lease payments to the Lenders consisting of principal and interest based on a repayment schedule mutually agreed by the parties. The interest under the Lease Financing is accrued based on the China Base Rate multiplied by 1.15, or 5.4625% on the Effective Date. Under the Agreements, at the end of the five-year lease term, the Lenders agree to sell such equipment back to the JV Company for a nominal amount (RMB 1). The JV Company’s obligations under the Lease Financing are secured by the land and building owned by the JV Company (the “Collateral”). The proceeds from the Lease Financing will be used primarily for the acquisition and installation of the 12-inch fabrication equipment and other expenses of the JV Company relating to the completion of the fabrication facility located in Chongqing. The Agreements contain customary representation, warranties and covenants, including restrictions on the transfer of the Collateral. The Agreements also contain customary events of default, including but are not limited to, failure to make payments and breach of material terms under the Agreements. The Agreements include certain customary closing conditions, including the payment of deposit by the JV Company. As of June 30, 2019, the outstanding balance of the Lease Financing of 376.0 million RMB (equivalent of $54.7 million based on the currency exchange rate as of June 30, 2019) was recorded under short-term and long-term capital lease liabilities. Capital leases Capital lease liabilities include the following:
| June 30,
| 2019 |  | 2018
| (in thousands)
Financing lease | $ | 54,736 |  |  | $ | 60,416 |
Computer software | — |  |  | 843 |
Exclusive technology rights | — |  |  | 23 |
| 54,736 |  |  | 61,282 |
Less: current portion | (11,355 | ) |  | (4,491 | )
Capital leases - long-term portion | $ | 43,381 |  |  | $ | 56,791 |
The computer software and exclusive technology rights under capital leases were included in property, plant and equipment and intangible assets, respectively. Future minimum lease payments at June 30, 2019 are as follows (in thousands):
Year ending June 30, |
2020 | $ | 14,219 |
2021 | 17,799 |
2022 | 16,928 |
2023 | 12,269 |
Total minimum lease payments | 61,215 |
Less amount representing interest | (6,479 | )
Total capital lease liabilities | $ | 54,736 |
Long-term debt On March 12, 2019, the JV Company entered into a loan agreement with The Export-Import Bank of China in the aggregate principal amount of 200 million RMB (approximately $29.8 million based on currency exchange rate between RMB and U.S. Dollar on March 31, 2019). The loan will mature on February 20, 2025. The JV Company drew down 190 million RMB (approximately $28.3 million based on the currency exchange rate between RMB and U.S. Dollar on March 31, 2019) in March 2019. The loan withdraw window will expire on February 28, 2020. The interest is accrued based on the China Base Rate multiplied by 1.1, or 5.39% on March 12, 2019. The loan requires quarterly interest payments. The principal payments are required to pay every 6 months over the term of loan commencing in October 2019. The obligation under this loan agreement is secured by the buildings and certain equipment owned by the JV Company. As a condition of the loan arrangements, 14 million RMB (approximately $2.0 million) of cash is held as restricted cash by the JV Company as a compensating balance at the JV Company's bank until the principal is paid off. As of June 30, 2019, the outstanding balance of the loan was 190 million RMB (equivalent of $27.7 million based on the currency exchange rate as of June 30, 2019). On May 1, 2018, our Oregon subsidiary, Jireh Semiconductor Incorporated (“Jireh”) entered into a loan agreement with the Bank that provided a term loan in an amount of $17.8 million. The obligation under the loan agreement is secured by certain real estate assets of Jireh and guaranteed by the Company. The loan has a five-year term and matures on June 1, 2023. Beginning June 1, 2018, Jireh shall make consecutive monthly payments of principal and interest to the Bank. The outstanding principal shall accrue interest at a fixed rate of 5.04% per annum on the basis of a 360-day year. The loan agreement contains customary restrictive covenants and includes certain financial covenants that require the Company to maintain, on a consolidated basis, specified financial ratios. The Company was in compliance with these covenants. As of June 30, 2019, the outstanding balance of the term loan was $16.8 million. On August 15, 2017, Jireh entered into a credit agreement with a financial institution (the “Bank”) that provided a term loan in an amount up to $30.0 million for the purpose of purchasing certain equipment for our fabrication facility located in Oregon. The obligation under the credit agreement is secured by substantially all assets of Jireh and guaranteed by the Company. The credit agreement has a five-year term and matures on August 15, 2022. In January 2018 and July 2018, Jireh drew down on the loan in the amount of $13.2 million and $16.7 million, respectively. Beginning in October 2018, Jireh is required to pay to the Bank on each payment date, the outstanding principal amount of the loan in monthly installments. The monthly loan interest is based on an adjusted London Interbank Offered Rate ("LIBOR") as defined in the credit agreement, plus specified applicable margin in the range of 1.75% to 2.25%, based on the outstanding balance of the loan. The credit agreement contains customary restrictive covenants and includes certain financial covenants that require the Company to maintain, on a consolidated basis, specified financial ratios and fixed charge coverage ratio. The Company was in compliance with these covenants. As of June 30, 2019, the outstanding balance of the term loan was $24.2 million. At June 30, 2019, maturities of short-term debt and long-term debt were as follows (in thousands):
Year ending June 30, |  |  |
2020 |  |  | $ | 26,682 |
2021 |  |  | 9,796 |
2022 |  |  | 15,036 |
2023 |  |  | 22,725 |
2024 |  |  | 6,696 |
Thereafter |  |  | 5,242 |
Total principal of debt |  |  | 86,177 |
Less: debt issuance costs |  |  | (188 | )
Total principal of debt, less debt issuance costs |  |  | $ | 85,989 |
| Short-term Debt |  | Long-term Debt
Principal amount | $ | 26,682 |  |  | $ | 59,495 |
Less: debt issuance costs | (73 | ) |  | (115 | )
Total debt, less debt issuance costs | $ | 26,609 |  |  | $ | 59,380 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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