XML 28 R13.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Note 6 - Long-term Debt | 12 Months Ended
--- | ---
Dec. 31, 2017
Notes to Financial Statements |
Long-term Debt [Text Block] | NOTE 6 - Long-Term Debt :
(In thousands ) |  | December 31 , |  |  | December 31 , |
|  | 2017 |  |  | 2016 |
Term loan payable to Fifth Third Bank, pai d February 28, 201 7 |  | $ | - |  |  | $ | 39,643 |
Note payable to Fifth Third Bank, pursuant to revolvin g credit agreement, paid February 28, 201 7 |  | $ | - |  |  | $ | 2,540 |
Note payable to BB&T, pursuant to revolvin g credit agreement, maturing February 25, 202 2 |  | $ | 1,475 |  |  | $ | - |
Term loan payable to BB& T maturing February 26, 202 4 |  | $ | 37,500 |  |  | $ | - |
|  | $ | 38,975 |  |  | $ | 42,183 |
Less : |  |  |  |  |  |  |  |
Payments due within one year include d in current liabilitie s |  | $ | 6,000 |  |  | $ | 5,893 |
Debt issuance cost s |  | $ | 42 |  |  | $ | 63 |
Long-term debt less current maturitie s |  | $ | 32,933 |  |  | $ | 36,227 |
Effective July 1, 2013, t he Company entered into an amended and restated 5 -year credit agreement with Fifth Third Bank that made available to the Company up to $15.0 million on a revolving credit basis (the “Initial Credit Facility”) in addition to a $30.0 million term loan utilized to finance the acquisition of substantially all of the assets of HPI Direct, Inc. Effective March 8, 2016, the Company entered into an amended and restated 5 -year credit agreement with Fifth Third Bank (the “Amended Credit Agreement”) that increased its revolving credit facility from $15 .0 million to $20.0 million (the “Amended Credit Facility”) and refinanced its then-existing term loan with a new $45.0 million term loan to help finance the acquisition of substantially all of the assets of BAMKO, Inc. Both loans were based upon the one -month LIBOR rate for U.S. dollar based borrowings. Interest was payable on the term loan at LIBOR plus 0.85% and on the revolving credit facility at LIBOR (rounded up to the next 1/8 th of 1% ) plus 0.85%. The Company paid a commitment fee of 0.10% per annum on the average unused portion of the commitment under the Amended Credit Facility. This credit agreement was paid in full on February 28, 2017 with the proceeds from a new loan agreement with Branch Banking and Trust Company (“BB&T”). Effective February 28, 2017, the Company entered into a new 7 -year credit agreement with BB&T (the “Credit Agreement”) that provides a new revolving credit facility of $35 .0 million (the “Credit Facility”) which terminates on February 25, 2022 and provides a new term loan of $42.0 million (the “Term Loan”) which matures on February 26, 2024. Both loans are based upon the one -month LIBOR rate for U.S. dollar based borrowings. Interest is payable for each loan at LIBOR (rounded up to the next 1/100 th of 1% ) plus 0.75% ( 2.25% at December 31, 2017). The Company pays a commitment fee of 0.10% per annum on the average unused portion of the commitment under the Credit Facility. The available balance under the Credit Facility is reduced by outstanding letters of credit. As of December 31, 2017, there were no amounts due under the Credit Facility and no outstanding letters of credit. The remaining scheduled amortization fo r the term loan is as follows: 2018 through 2023 $ 6.0 million per year; 2024 $1.5 million. The term loan does not include a prepayment penalty. In connection with the Amended Credit Agreement, the Company incurred approximately $0.1 million of debt issuance costs, which primarily consisted of legal fees. These costs are being amortized over the life of the Amended Credit Agreement and are recorded as additional interest expense. The Company’s obligations under the Amended Credit Agreement are secured by substantially all of the operating assets of Superior Uniform Group, Inc. and are guaranteed by all domestic subsidiaries of Superior Uniform Group, Inc. The agreement contains restrictive provisions concerning a maximum funded senior indebtedness to EBITDA ratio as defined in the agreement ( 4.0:1 ) as defined in the agreement and a fixed charge coverage ratio ( 1.25:1 ). The Company is in full compliance with all terms, conditions and covenants of the Amended Credit Agreement. Effective July 1, 2013, in order to reduce interest rate risk on its debt, the Company entered into an interest rate swap agreement with Fifth Third Bank, N.A. that was designed to effectively convert or hedge the variable interest rate on a portion of it s borrowings to achieve a net fixed rate of 2.53% per annum, beginning July 1, 2014 with a notional amount of $14.3 million. The notional amount of the interest rate swap was reduced by the scheduled amortization of the principal balance of the original term loan of $0.2 million per month through July 1, 2015 and $0.3 million per month through June 1, 2018 with the remaining notional balance of $3.3 million to be eliminated on July 1, 2018. Effective March 8, 2016, the fixed rate on the notional amount was reduced to 2.43%. Effective February 24, 2017, this interest rate swap agreement was terminated. On this date the swap agreement had $0.1 million in cumulative gains in OCI which was reversed to earnings. Effective March 3, 2017, in order to reduce the interest rate risk on its future debt, the Company entered into an interest rate swap agreement with BB&T that was designed to effectively convert or hedge the variable interest rate on a portion of its future borrowings to achieve a net fixed rate of 3.12% per annum, beginning March 1, 2018 with a notional amount of $18.0 million. The notional amount of the interest rate swap is reduced by $0.3 million per month beginning April 1, 2018 through February 26, 2024. Under the terms of the interest rate swap, the Company will receive variable interest rate payments and make fixed interest rate payments on an amount equal to the notional amount at that time. Changes in the fair value of the interest rate swap designated as the hedging instrument that effectively offset the variability of cash flows associated with the variable rate, long-term debt obligation are recorded in OCI, net of related income tax effects. As of December 31, 2017, the swap agreement had a negative fair value of $0.1 million which is presented within other current liabilities on the consolidated balance sheet.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration