XML 99 R20.htm IDEA: XBRL DOCUMENT

Long-Term Obligations

12 Months Ended

Oct. 31, 2012

Revolving Credit Facilities and Long-Term Obligations [Abstract]

12. Long-Term Obligations

Long-term obligations at fiscal year ends consist of the following (in thousands):


	2012			2011
Farm Credit West, PCA, (FCW) term loan, bearing interest at 1.7%	$	5,509		$	7,012
Bank of America, N.A. (BoA) term loan, bearing interest at 1.7%		5,606			7,135
FCW, term loan, bearing interest at 5.7%		3,900			5,200
Capital leases		3,440			4,345

		18,455			23,692
Less current portion		(5,416	)		(5,448	)

	$	13,039		$	18,244

See Note 16 for discussion regarding our acquisition of RFG. In conjunction with such acquisition, the Company and FCW entered into a Term Loan Agreement (Term Agreement), effective May 31, 2011. Under the terms of the Term Agreement, we were advanced $15 million for the purchase of RFG. Pursuant to this agreement, we are required to make 60 monthly principal and interest payments, from July 1, 2011 to June 1, 2016. There is no prepayment penalty associated with this Term Agreement.

This Term Agreement also replaces in its entirety the original Term Loan Agreement dated June 1, 2005 by and between the Company and FCW. There was no significant change in terms between the original Term Loan Agreement and this new agreement.

Effective September 30, 2011, the Company and Bank of America, N.A. (BoA), entered into an agreement, Amendment No. 4 to Loan Agreement (the Agreement), which amended our existing credit facility with BoA. This agreement included a variable rate term loan in the amount of approximately $7.1 million. These proceeds were used to retire approximately 50% of the outstanding balance (as of September 30, 2011) of the term loan owed to FCW related to the purchase of RFG (see above). This effectively split the funding of the amounts due at closing for that acquisition between both banks. The credit facility and term loan contain various financial covenants, the most significant relating to Tangible Net Worth (as defined), Fixed Charge Coverage Ratio (as defined) and Current Ratio (as defined).

In conjunction with the purchase of RFG, we assumed various capital leases related to machinery and equipment. These leases bear interest at a weighted average interest rate of approximately 4.0%. The total obligation acquired related to these capital leases were $4.0 million, with $1.1 million being classified as in the current portion.

At October 31, 2012, annual debt payments are scheduled as follows (in thousands):


	Total
Year ending October 31:
2013	$	5,416
2014		5,415
2015		4,940
2016		2,134
2017		108
Thereafter		442

	$	18,455