DEBT

The Company had a credit agreement with TCB providing for a revolving facility, maturing August 21, 2019, permitting the Company to borrow funds from time to time in an aggregate amount equal to the lesser of the borrowing base amount, which is 85% of eligible accounts receivable, and TCB’s commitment of $35.0 million.

In connection with the acquisition of the assets of Zycron described above, on April 3, 2017, the Company entered into an Amended and Restated Credit Agreement (the “Amended Credit Agreement”) with TCB with an aggregate commitment of $55.0 million. The Amended Credit Agreement provides for a revolving credit facility maturing April 3, 2022 (the “Revolving Facility”), permitting the Company to borrow funds from time to time in an aggregate amount equal to the lesser of the borrowing base amount, which is 85% of eligible accounts receivable, and TCB’s commitment of $35.0 million and also provides for a term loan maturing April 3, 2022 (the “Term Loan”) in the amount of $20.0 million with principal payable quarterly, based on an annual percentage of the original principal amount as defined in the Amended Credit Agreement. TCB may also make loans (“Swing Line Loans”) not to exceed the lesser of $7.5 million or the aggregate commitment. Additionally, the Amended Credit Agreement originally provided for the Company to increase the commitment by $20.0 million ($15.0 million remaining) with an accordion feature. Proceeds from the foregoing loan arrangements were used to pay off existing indebtedness of the Company on the revolving credit facility under the credit agreement, dated as of August 21, 2015, as amended, with TCB.

The Revolving Facility and Term Loan bear interest either at the Base Rate plus the Applicable Margin or LIBOR plus the Applicable Margin (as such terms are defined in the Amended Credit Agreement). Swing Line Loans bear interest at the Base Rate plus the Applicable Margin. All interest and commitment fees are generally paid quarterly. Additionally, the Company pays an unused commitment fee on the unfunded portion of the Revolving Facility. The Company’s obligations under the Amended Credit Agreement are secured by a first priority security interest in substantially all tangible and intangible property of the Company and its subsidiaries.

The Amended Credit Agreement's customary affirmative and negative covenants remain substantially the same as those in effect under the original credit agreement. The Company is subject to a maximum Leverage Ratio, a minimum Fixed Charge Coverage Ratio, and a minimum Dividend Fixed Charge Coverage Ratio, as defined in the Amended Credit Agreement. As of December 30, 2018, the Company was in compliance with these covenants.

The Company borrowed $20.0 million on the Term Loan in conjunction with the closing of the Zycron acquisition on April 3, 2017. The Company borrowed $5.0 million on the accordion in conjunction with the closing of the Smart acquisition on September 18, 2017. Proceeds from the May 2018 common stock issuance (see Note 12) were used to pay down $10.7 million of the principal outstanding under the Term Loan without a repayment fee and reduce the Revolving Facility by $7.5 million.

Line of Credit

At December 30, 2018 and December 31, 2017, $10.7 million and $21.4 million, respectively, was outstanding on the Revolving Facility with TCB. Average daily balance for Fiscal 2018, 2017 and 2016 was $15.6 million, $20.3 million, and $17.5 million, respectively.

Borrowings under the Revolving Facility bore interest at:



	December 30, 2018				December 31, 2017
Base Rate	$	650,289	6.50	%	$	6,368,068	5.50	%
LIBOR	5,000,000		5.16	%	5,000,000		4.09	%
LIBOR	5,000,000		5.16	%	5,000,000		4.13	%
LIBOR	—		—	%	5,000,000		4.24	%
Total	$	10,650,289			$	21,368,068

Long Term Debt

Long-term debt bore interest at:



	December 30, 2018				December 31, 2017
Base Rate	$	1,121,000	6.50	%	$	687,500	5.50	%
LIBOR	6,500,000		5.41	%	6,500,000		4.34	%
LIBOR	2,500,000		5.41	%	6,500,000		4.38	%
LIBOR	—		—	%	6,000,000		4.49	%
LIBOR	—		—	%	4,200,000		4.64	%
Long-term debt, less current portion	$	10,121,000			$	23,887,500

Maturities on the Revolving Facility and long-term debt as of December 30, 2018, are as follows:



Fiscal:
2019	$	4,287,500
2020	5,512,500
2021	321,000
2022	10,650,289
	20,771,289
Less deferred finance fees	(682,552		)
Total	$	20,088,737