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Credit Facilities | 6 Months Ended
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Mar. 31, 2019
Debt Disclosure [Abstract] |
Credit Facilities | Credit Facilities A summary of our loan facilities and subordinated debt financing as of March 31, 2019 is as follows:
|  | As of March 31, 2019
Lender |  | Arrangement |  | Loan Balance |  | Interest |  | Maturity Date
Fifth Third Bank |  | Secured term loan $25 million (a) |  | $ | — |  |  | LIBOR* + 3.0% |  | 5/1/2021
Fifth Third Bank |  | Secured revolving line of credit $10 million ceiling (b) |  | $ | — |  |  | LIBOR* + 3.0% |  | 5/1/2021
*LIBOR rate as of March 31, 2019 was 2.49% (a) Represents the principal amounts payable on our Term Loan with Fifth Third Bank. The $25.0 million term loan from Fifth Third Bank was secured by liens on substantially all of the assets of the Company. The principal of the Term Loan was payable in fifty-nine consecutive monthly installments of $312,500 with the remaining balance due on May 1, 2021. Through an excess cash flow payment and a series of voluntary prepayments, the Company has fully repaid the term loan as of March 31, 2019. The Term Loan Agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. We are in compliance with all loan covenants and restrictions. Among other matters, we must comply with limitations on: granting liens; incurring other indebtedness; maintenance of assets; investments in other entities and extensions of credit; mergers and consolidations; and changes in nature of business. The loan agreement also requires us to comply with certain quarterly financial covenants including: (i) a minimum fixed charge coverage ratio of at least 1.35 to 1.0 commencing with the quarter ending June 30, 2016, and for all subsequent periods, and (ii) a Funded Indebtedness to Adjusted EBITDA ratio not exceeding the ratio of 2.99 to 1.0 at closing and thereafter a ratio ranging from 3.0 to 1.0 for the period through June 30, 2018 to 2.5 to 1.0 for the period ending September 30, 2018 through maturity. Adjusted EBITDA ratio is calculated by dividing the Company's total interest-bearing debt by net income adjusted to exclude (i) interest and other expenses, including acquisition expenses, net, (ii) provision for or benefit from income taxes, if any, (iii) depreciation and amortization, and (iv) G&A expenses - equity grants. In addition to monthly payments of the outstanding indebtedness, the loan agreement also requires annual payments of a percentage of excess cash flow, as defined in the loan agreement. The loan agreement states that an excess cash flow recapture payment must be made equal to (a) 75% of the excess cash flow for each year in which the Funded Indebtedness to Adjusted EBITDA ratio is greater than or equal to 2.50:1.0, or (b) 50% of the Excess Cash Flow for each fiscal year in which the funded indebtedness to Adjusted EBITDA Ratio is less than 2.50:1.0 but greater than or equal to 2.0:1.0. DLH made a voluntary prepayment of term debt of $5.6 million in September 2018 and additional voluntary prepayments in February and March 2019, resulting in the term loan being fully repaid as of March 31, 2019. (b) The secured revolving line of credit from Fifth Third Bank has a ceiling of up to $10.0 million. Borrowing on the line of credit is secured by liens on substantially all of the assets of the Company. The Company's total borrowing availability, based on eligible accounts receivables at March 31, 2019, was $7.2 million. This capacity was comprised of $1.1 million in a stand-by letter of credit and unused borrowing capacity of $8.3 million. The revolving line of credit has a maturity date of May 1, 2021 and is subject to loan covenants as described above. DLH is fully compliant with those covenants.

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- Definition The entire disclosure for long-term debt. + 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 + Details
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