XML 41 R17.htm IDEA: XBRL DOCUMENT

Line of Credit

6 Months Ended

Jun. 30, 2012

Line of Credit

Note 8 - Line of Credit

Effective as of July 31, 2012, the Company entered into an amendment of its credit facility with VNB New York Corp., Bank Leumi USA, Israel Discount Bank of New York and Manufacturer’s & Trader’s Trust Company, which, among other things, reduced the interest rate floor from 5.5% to 4.75%, increased permitted borrowings from $55,000,000 to $75,000,000, subject to compliance with the borrowing base, and extended the expiration date by two years to March 31, 2015. The Company pays interest at the greater of (i) 90 day LIBOR plus 3% (3.46% at June 29, 2012 and 3.44% at July 31, 2012) and (ii) 4.75% per annum, effective July 31, 2012 (5.5% per annum through July 31,2012) and there is an unused facility fee of .25% per annum. The Company incurred an aggregate of $800,000 in commitment and extension fees in connection with the amendment which will be amortized over the remaining term of the facility. At June 30, 2012 and July 31, 2012, $19,600,000 and $15,350,000, respectively, was outstanding under the facility. The Company is in compliance with all covenants at June 30, 2012.

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+ Details