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Note 4 - Long-Term Debt
 6 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]

Note 4 - Long-Term Debt


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


   

September 30, 2014

   

March 31, 2014

 

Line of credit (1.65% at September 30, 2014)

  $ 11,500     $ 16,500  

Term loan (2.15% at September 30, 2014)

    14,250       --  

Less: current portion

    (3,000 )     --  

Long-term portion

  $ 22,750     $ 16,500  

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 were used for general working capital and corporate needs, retiring existing debt, and supporting acquisitions.


In April 2014, the Credit Facility was amended to include a $15,000,000 term loan (the “Term Loan”) and to extend the maturity date of the Credit Facility to June 30, 2017.


Under the Line of Credit, indebtedness bears interest at either: (1) LIBOR, as defined, plus an applicable margin ranging from 1.25% to 2%; 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%. We elect the interest rate with each borrowing under the line of credit. In addition, there is an unused capacity fee of 0.15% to 0.30%. The adjustments and unused capacity fee depend on the ratio of funded debt (including amounts outstanding under the Term Loan) 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 Term Loan bears interest at LIBOR, as defined, plus 2% and requires 11 quarterly principal payments (the first due date was July 15, 2014) in the amount of $750,000 with the remaining balance of principal and accrued interest due on April 15, 2017. The proceeds from the Term Loan were used to support acquisition financing and to repay amounts outstanding under the Line of Credit.


The Credit Facility is secured by all of our assets and 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 1.35 to 1.0. We were in compliance with these covenants at September 30, 2014.


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


Year ending March 31,

       

2015

  $ 1,500  

2016

    3,000  

2017

    3,000  

2018

    18,250  
    $ 25,750  

In October 2014, we took a $5,000,000 draw on the Line of Credit to fund a business acquisition (see Note 9) and made a $750,000 required principal payment on the Term Loan and $1,500,000 of principal payments on the Line of Credit.