DEBT AND CREDIT AGREEMENTS

6 Months Ended

Jun. 30, 2015

NOTE 7 — DEBT AND CREDIT AGREEMENTS

The Company’s outstanding debt balances as of June 30, 2015 and December 31, 2014 consisted of the following:


	June 30,		December 31,
	2015		2014
Line of credit	$	527	$	—
Term loans and notes payable		7,665		2,918
Less: Current portion		(1,306)		(268)
Long-term debt, net of current maturities	$	6,886	$	2,650

Credit Facilities

AloStar Credit Facility

On June 29, 2015, AloStar and the Company executed a Seventh Amendment to the Loan and Security Agreement dated August 23, 2012 establishing the Credit Facility (the “Loan Agreement”). The amendment extended the maturity date of the Credit Facility for one additional year to August 31, 2016, modified the applicable interest rate minimum quarterly interest charges, and transitioned $5,000 of the original Credit Facility amount into the Term Loan.

Under the Credit Facility, AloStar will advance funds when requested against a borrowing base consisting of approximately 85% of the face value of eligible accounts receivable of the Company and approximately 50% of the book value of eligible inventory of the Company. Borrowings under the Credit Facility bear interest at a per annum rate equal to the one-month London Interbank Offered Rate (“LIBOR”) plus a margin of 3.25%, subject to a minimum. The Company must also pay an unused facility fee to AloStar equal to 0.50% per annum on the unused portion of the Credit Facility, along with other standard fees.

AloStar funded the full amount of the Term Loan on June 30, 2015. Borrowings under the Term Loan bear interest at a per annum rate equal to 3.50% plus the applicable daily weighted average LIBOR. The Term Loan payments are being amortized at approximately $60 per month with a balloon payment of approximately $4,220 due in August 2016.

The Loan Agreement contains customary representations and warranties. It also contains a requirement that the Company, on a consolidated basis, maintain a minimum monthly fixed charge coverage ratio and minimum monthly earnings before interest, taxes, depreciation, amortization, restructuring and share-based payments (“Adjusted EBITDA”), along with other customary restrictive covenants, certain of which are subject to materiality thresholds, baskets and customary exceptions and qualifications.

The obligations under the Loan Agreement are secured by, subject to certain exclusions, (i) a first priority security interest in all of the accounts receivable, inventory, chattel paper, payment intangibles, cash and cash equivalents and other working capital assets and stock or other equity interests in the Subsidiaries, and (ii) a first priority security interest in all of Brad Foote’s equipment.

As of June 30, 2015, there was $527 in outstanding indebtedness under the Credit Facility, the Company had the ability to borrow up to $11,973 thereunder, the per annum interest rate thereunder was 4.25%, and there was $5,000 in outstanding indebtedness under the Term Loan. The Company was in compliance with all applicable covenants under the Loan Agreement as of June 30, 2015.

Other

Included in Long Term Debt, Net of Current Maturities is $2,600 associated with the New Markets Tax Credit transaction described further in Note 15, “New Markets Tax Credit Transaction” of these condensed consolidated financial statements. Additionally, the Company has approximately $64 of other term loans outstanding.