XML 37 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Subsequent Events
6 Months Ended
Mar. 02, 2013
Subsequent Events [Abstract]  
Subsequent Events

NOTE 9 – SUBSEQUENT EVENTS

 

Acquisition of NinetyFive 5 LLC

 

Subsequent to March 2, 2013,  we entered into an asset purchase agreement with NinetyFive 5 LLC (NinetyFive 5) to acquire substantially all of the assets of NinetyFive 5.    NinetyFive 5 provides sales success training services and will become a component of our Sale Performance Practice.    The closing of the purchase occurred on March 11, 2013.  The consideration for the assets purchased consists of $4.2 million paid in cash, the assumption of certain liabilities, and potential earnout payments up to a maximum of $8.5 million based on cumulative EBITDA as set forth in the purchase agreement.

 

Line of Credit Renewal

 

On March 25, 2013, we entered into the Third Modification Agreement (the Third Modification Agreement) to our previously existing amended and restated secured credit agreement (the Restated Credit Agreement) with our existing lender.  The primary purposes of the Third Modification Agreement are to extend the maturity date of the Restated Credit Agreement from March 31, 2015 to March 31, 2016 and to increase the caps for permitted business acquisitions.  The Third Modification Agreement continues to provide a revolving line of credit facility with a maximum borrowing amount of $10.0 million with interest at LIBOR plus 2.50 percent per year.  The revolving credit facility may be used for general business purposes.

 

The other terms, conditions, and financial covenants in the Third Modification Agreement are substantially the same as those defined in the Restated Credit Agreement as amended and modified.  In the event of noncompliance with the financial covenants and other defined events of default, the lender is entitled to certain remedies, including acceleration of the repayment of amounts outstanding on the line of credit facility.

 

We believe that the Restated Credit Agreement will be a key component of our operations that will allow us to maintain adequate liquidity for at least the next twelve months.