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Debt

12 Months Ended

Dec. 31, 2019

Debt [Abstract]

Debt

5. Debt

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​	​	​	​	​	​	​	​	​	​	​
​	​	​		​	​		​	Interest rates at	​	​
Year ended December 31,		2019			2018			December 31,2019		Maturity
Revolving Credit Facility	​	​	​	​	​	​	​	​	​	​
Credit Facility	​	$	126,000	​	$	96,000	​	2.77 - 2.81%	​	June 2024
​	​	​	​	​	​	​	​	​	​	​
Debt	​	​	​	​	​	​	​	​	​	​
Stoneridge Brazil short-term obligations	​	​	-	​	​	989	​	​	​	​
Stoneridge Brazil long-term notes	​	​	972	​	​	1,527	​	7.00%	​	November 2021
Suzhou short-term credit line	​	​	2,154	​	​	-	​	4.70% - 5.00%	​	August 2020
Total debt	​	​	3,126	​	​	2,516	​	​	​	​
Less: current portion	​	​	(2,672)	​	​	(1,533)	​	​	​	​
Total long-term debt, net	​	$	454	​	$	983	​	​	​	​

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Revolving Credit Facility

On September 12, 2014, the Company entered into a Third Amended and Restated Credit Agreement (the “Amended Agreement”). The Amended Agreement provides for a $300,000 revolving credit facility, which replaced the Company’s existing $100,000 asset-based credit facility and includes a letter of credit subfacility, swing line subfacility and multicurrency subfacility.

On June 5, 2019, the Company entered into the Fourth Amended and Restated Credit Agreement (the “2019 Credit Facility”). The 2019 Credit Facility provides for a $400,000 senior secured revolving credit facility and it replaced and superseded the Amended Agreement. The 2019 Credit Facility has an accordion feature which allows the Company to increase the availability by up to $150,000 upon the satisfaction of certain conditions and includes a letter of credit subfacility, swing line subfacility and multicurrency subfacility. The 2019 Credit Facility has a termination date of June 5, 2024. In 2019, the Company capitalized $1,366 of deferred financing costs as a result of entering into the 2019 Credit Facility. In connection with the 2019 Credit Facility, the Company wrote off a portion of the previously recorded deferred financing costs of $275 in interest expense, net during the year ended December 31, 2019. Borrowings under the 2019 Credit Facility bear interest at either the Base Rate or the LIBOR rate, at the Company’s option, plus the applicable margin as set forth in the 2019 Credit Facility. The 2019 Credit Facility contains certain financial covenants that require the Company to maintain less than a maximum leverage ratio and more than a minimum interest coverage ratio.

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The 2019 Credit Facility contains customary affirmative covenants and representations. The 2019 Credit Facility also contains customary negative covenants, which, among other things, are subject to certain exceptions, including restrictions on (i) indebtedness, (ii) liens, (iii) liquidations, mergers, consolidations and acquisitions, (iv) disposition of assets or subsidiaries, (v) affiliate transactions, (vi) creation or ownership of certain subsidiaries, partnerships and joint ventures, (vii) continuation of or change in business, (viii) restricted payments, (ix) prepayment of subordinated and junior lien indebtedness, (x) restrictions in agreements on dividends, intercompany loans and granting liens on the collateral, (xi) loans and investments, (xii) sale and leaseback transactions, (xiii) changes in organizational documents and fiscal year and (xiv) transactions with respect to bonding subsidiaries. The 2019 Credit Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) non-payment of principal and non-payment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross default of other debt, final judgments and other adverse orders in excess of $30,000, (v) any loan document shall cease to be a legal, valid and binding agreement, (vi) certain uninsured losses or proceedings against assets with a value in excess of $30,000, (vii) ERISA events, (viii) a change of control, or (ix) bankruptcy or insolvency proceedings.

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Borrowings outstanding on the 2019 Credit Facility and the Amended Agreement as applicable, were $126,000 and $96,000, respectively at December 31, 2019 and 2018, respectively.

The Company was in compliance with all credit facility covenants at December 31, 2019 and 2018, respectively.

The Company has outstanding letters of credit of $1,768 and $1,815 at December 31, 2019 and 2018, respectively.

Debt

Stoneridge Brazil maintains long-term notes used for working capital purposes which have fixed or variable interest rates. The weighted-average interest rate of long-term debt of Stoneridge Brazil at December 31, 2019 was 7.00%. Depending on the specific note, interest is payable either monthly or annually. Principal repayments of Stoneridge Brazil debt at December 31, 2019 are as follows: $518 in 2020 and $454 in 2021.

In December 2019, the Company’s wholly-owned subsidiary located in Campinas, Brazil, Stoneridge Brazil, established an overdraft credit line which allows overdrafts on Stoneridge Brazil’s bank account up to a maximum level of R$5,000, or $1,244, at December 31, 2019.  There was no balance outstanding on the overdraft credit line as of December 31, 2019.

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The Company’s wholly-owned subsidiary located in Stockholm, Sweden, has an overdraft credit line which allows overdrafts on the subsidiary’s bank account up to a maximum level of 20,000 Swedish krona, or $2,136 and $2,259 at December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, there was no balance outstanding on this overdraft credit line.

The Company’s wholly-owned subsidiary located in Suzhou, China, has two credit lines (the “Suzhou credit line”) which allow up to a maximum borrowing level of 60,000 Chinese yuan, or $8,618 at December 31, 2019. At December 31, 2019 there was $2,154 in borrowing outstanding on the Suzhou credit line with a weighted-average interest rate of 4.80%. The Suzhou credit line is included on the consolidated balance sheet within current portion of debt. At December 31, 2018, there was no balance outstanding on these credit lines.

The Company was in compliance with all Credit Facility and debt covenants at December 31, 2019 and 2018.

At December 31, 2019, the future maturities of the Credit Facility and debt were as follows:

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​	​	​	​
Year ended December 31,		​	​
2020	​	$	2,672
2021	​	​	454
2022	​	​	-
2023	​	​	-
2024	​	​	126,000
Total	​	$	129,126

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- References

No definition available.

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- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

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