Long-Term Debt

Long-term debt consists of:



	March 31, 2016			September 30, 2015
Revolving credit agreement	$	8,333		$	16,500
Foreign subsidiary borrowings	12,770			13,197
Capital lease obligations	181			252

Term loan	17,857			19,286
Less: unamortized debt issuance cost	(273		)	(306		)
Term loan less unamortized debt issuance cost	17,584			18,980
Total Debt	38,868			48,929

Less – current maturities	(10,955		)	(10,503		)
Total long-term debt	$	27,913		$	38,426

On June 26, 2015 the Company entered into a new Credit and Security Agreement (the "Credit Agreement") with a new lender. The new credit facility is comprised of (i) a five year revolving credit facility with a maximum borrowing amount of up to $25,000, which reduced to $20,000 on January 1, 2016, and (ii) a five year term loan of $20,000. Amounts borrowed under the credit facility are secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its non-U.S. subsidiaries. The new term loan is repayable in quarterly installments of $714 starting September 30, 2015. The amounts borrowed under the Credit Agreement were used to repay the Company's previous revolver and term note, to fund the acquisition of C*Blade S.p.A. Forging & Manufacturing ("C*Blade" - see Note 8) and for working capital and general corporate purposes. The Credit Agreement also has an accordion feature, which allows the Company to increase the availability by up to $15,000 upon consent of the existing lenders or upon additional lenders being joined to the facility. Borrowings will bear interest at the LIBOR rate, prime rate, or the eurocurrency reference rate depending on the type of loan requested by the Company, in each case, plus the applicable margin as set forth in the Credit Agreement.

The revolver has a rate based on LIBOR plus 2.75% spread and a prime rate which resulted in a weighted average rate of 3.4% at March 31, 2016 and the term loan has a rate based on LIBOR plus 2.75% spread which was 3.3% at March 31, 2016. The new loans are subject to certain customary financial covenants including, without limitation, covenants that require the Company to not exceed a maximum debt to EBITDA ratio and to maintain a minimum fixed charge coverage ratio. There is also a commitment fee ranging from 0.15% to 0.35% to be incurred on the unused balance. The Company was in compliance with loan covenants required to be met as of March 31, 2016. The Company expects to remain in compliance throughout fiscal 2016.

As of March 31, 2016, the total foreign debt borrowings was $12,770, of which $2,268 is the current portion. Interest rates range from 1.0% to 4.0% Euribor rate. The remaining $5,776 consists of short term borrowings and the factoring of a portion the Company's trade receivables. The factoring programs are uncommitted, whereby the Company offers receivables for sale to an unaffiliated financial institution, which are then subject to acceptance by the unaffiliated financial institution. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are not isolated from the Company, and effective control of the receivables is not passed to the unaffiliated financial institution, which does not have the right to pledge or sell the receivables. The Company accounts for the sale of receivables under this agreement as short-term debt and continues to carry the receivables on its consolidated condensed balance sheets. There was $990 of short-term borrowings relating to this agreement at March 31, 2016 classified within short-term debt. The carrying value of the receivables pledged as collateral was $1,668 at March 31, 2016.