9. LONG-TERM DEBT

3 Months Ended

Jun. 30, 2017


9.			LONG-TERM DEBT

In October 2010, we entered into a financing agreement with PNC Bank (“PNC”) to provide a $70 million credit facility. In December 2014, we amended and restated the credit facility to increase the facility to $75 million and extend the term of the facility an additional five years. The credit facility’s base interest rate is the current prime rate less 0.25%, however the credit facility provides us the option to borrow on up to eight fixed loans at LIBOR plus 1.25% in accordance with the 2014 amended and restated credit agreement. The LIBOR rate is determined based on the fixed loan maturities, which vary from 30, 60, 90, or 180 days. The amended and restated credit facility matures in November 2019.

The Company's credit facility borrowings consist of the following:

	June 30, 2017		December 31, 2016		June 30, 2016

LIBOR borrowings (1)	$	7,000,000	$	12,000,000	$	22,000,000
Prime borrowings (2)		1,618,697		2,584,008		1,503,226
Total credit facility borrowings	$	8,618,697	$	14,584,008	$	23,503,226

(1) June 30, 2017 effective rate of 2.41%. Variable effective rate at June 30, 2017, based on LIBOR + 1.25%

(2) June 30, 2017 effective rate of 4.00%. Variable effective rate at June 30, 2017, based on Prime - 0.25%

The total amount available under our amended and restated revolving credit facility is subject to a borrowing base calculation based on various percentages of accounts receivable and inventory. As of June 30, 2017, we had total capacity of $63.4 million.

Our amended and restated credit facility contains a restrictive covenant which requires us to maintain a fixed charge coverage ratio. This restrictive covenant is only in effect upon a triggering event taking place (as defined in the amended and restated credit facility agreement). At June 30, 2017, there was no triggering event and the covenant was not in effect.