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Long-Term Debt
 6 Months Ended
Sep. 30, 2012
Long-Term Debt.  
Long-Term Debt

Note 5 -   Long-Term Debt

 

Long-term debt consists of the following (in thousands):

 

 

 

September 30,
2012

 

March 31,
2012

 

Line of credit (1.5% at September 30, 2012)

 

$

8,000

 

$

—

 

Less: current portion

 

—

 

—

 

Long-term portion

 

$

8,000

 

$

—

 

 

In February 2012, we entered into a three year agreement (the “Credit Facility”) for a $20,000,000 revolving line of credit (“Line of Credit”) and up to $1,000,000 of letters of credit, maturing in February 2015.  Funds from the Credit Facility may be used for general working capital and corporate needs, retiring existing debt, or to support acquisitions and capital expenditures.

 

Under the Credit Facility, indebtedness bears interest at either: (1) LIBOR, as defined, plus an applicable margin ranging from 1.25% to 2.00%; or (2) the bank’s commercial bank floating rate (“CBFR”), which is the greater of the bank’s prime rate or one month LIBOR + 2.50%, adjusted down, from 1.25% to 0.50%.  Management elects the interest rate with each borrowing under the line of credit.  There is also an unused capacity fee of 0.15% to 0.30%.  The adjustments and unused capacity fee depend on the ratio of funded debt to our trailing four quarters of EBITDA, as defined, with four tiers ranging from a ratio of less than one to greater than two.  Letter of credit fees are based on the applicable LIBOR rate.

 

The Credit Facility is secured by all of our assets.  The Credit Facility requires us to maintain a ratio of funded debt to our trailing four quarters of EBIDTA, as defined, of 2.5 to 1.0, and a minimum fixed charge coverage ratio of 1.5 to 1.0.

 

In order to facilitate the Bios Acquisition, in May 2012 we borrowed $11,000,000 under the terms of the Line of Credit.  During the three and six months ended September 30, 2012 we made principal repayments of $3,000,000.  As a result, the amount outstanding under the Line of Credit was $8,000,000 as of September 30, 2012.  In October 2012, we made an additional principal payment of $1,500,000.

 

Future contractual maturities of debt are as follows (in thousands):

 

Year ending March 31,

 

 

 

2013

 

$

—

 

2014

 

—

 

2015

 

8,000

 

 

 

$

8,000

 

 

In April 2010, we entered into a credit facility consisting of: a) 36 month reducing line of credit for $3,000,000 and maturing at April 27, 2013, requiring quarterly principal payments of $250,000 beginning July 27, 2010, which was retired in February 2012; and b) revolving line of credit for $4,000,000 maturing on December 23, 2011, which was retired in December 2011. Both of these lines of credit were subject to a variable rate of interest and a rate floor.