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Debt
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Debt

Note 7 – Debt

 

Note payable consisted of the following: 

          
  

September 30,

2021

  

December 31,

2020

 
         
Variable rate term loan due August 18, 2026. Principal and interest (2.15% at September 30, 2021) payable monthly.  $4,750   $– 
Unamortized deferred financing costs   (24)   – 
Total note payable   4,726    – 
Less current portion   (1,000)   – 
Total long-term portion  $3,726   $– 

 

Credit Agreement

 

On August 18, 2021, Lifeway entered into the Fourth Modification (the “Fourth Modification”) to the Amended and Restated Loan and Security Agreement (as amended and modified from time to time, the “Credit Agreement” and, as amended and modified by the Fourth Modification, the “Modified Credit Agreement”) with its existing lender and certain of its subsidiaries. The Fourth Modification amends the Credit Agreement to provide for, among other things, a $5 million term loan by the existing lender to the borrowers to be repaid in quarterly installments of principal and interest over a term of five years (the “Term Loan”).  The termination date of the Term Loan is August 18, 2026, unless earlier terminated. Except for the addition of the Term Loan, the Credit Agreement remains substantively unchanged and in full force and effect.

 

As amended, all outstanding amounts under the revolving line of credit and term loan bear interest, at Lifeway’s election, at either the lender Base Rate (the Prime Rate minus 1.00%) or the LIBOR plus 1.95%, payable monthly in arrears. Lifeway is also required to pay a quarterly unused revolving line of credit fee of 0.20% and, in conjunction with the issuance of any letters of credit, a letter of credit fee of 0.20%.

 

Revolving Credit Facility

 

As of September 30, 2021, we had $2,777 outstanding under the Revolving Credit Facility. We had $2,223 available for future borrowings under the Revolving Credit Facility as of September 30, 2021. Lifeway’s interest rate on debt outstanding under the Revolving Credit Facility as of September 30, 2021 was 2.15%.

 

Deferred Financing Costs

 

As of September 30, 2021, net unamortized deferred financing costs of $24 related to the term loan were included as a direct deduction from outstanding long-term debt.

 

Except as described above, as amended, the Modified Credit Agreement remains substantively unchanged and in full force and effect, including customary representations, warranties, and covenants on the part of Lifeway, including financial covenants requiring us to maintain a fixed charge coverage ratio of no less than 1.25 to 1.00 each of the fiscal quarters ending through the expiration date. The Modified Credit Agreement continues to provide for events of default, including failure to repay principal and interest when due and failure to perform or violation of the provisions or covenants of the agreement, as a result of which amounts due under the Modified Credit Agreement may be accelerated. The loans and all other amounts due and owed under the Credit Agreement and related documents are secured by substantially all of our assets.

 

We were in compliance with the fixed charge coverage ratio and minimum working capital covenants at September 30, 2021.