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Debt | 9 Months Ended
--- | ---
Jun. 30, 2018
Debt Disclosure [Abstract] |
Debt | Debt Debt consists of:
| June 30, 2018 |  | September 30, 2017
Revolving credit agreement | $ | 19,492 |  |  | $ | 18,557 |
Foreign subsidiary borrowings | 7,398 |  |  | 8,346 |
Capital lease obligations | 357 |  |  | 352 |
Term loan | 2,629 |  |  | 4,060 |
Less: unamortized debt issuance cost | (46 | ) |  | (47 | )
Term loan less unamortized debt issuance cost | 2,583 |  |  | 4,013 |
Total debt | 29,830 |  |  | 31,268 |
Less – current maturities | (25,563 | ) |  | (26,117 | )
Total long-term debt | $ | 4,267 |  |  | $ | 5,151 |
On November 9, 2016, the Company entered into an Amended and Restated Credit and Security Agreement ("Credit Facility") with its Lender. The Credit Facility matures on June 25, 2020 and consisted of secured loans in an aggregate principal amount of up to $39,871. The Credit Facility was comprised of (i) a senior secured revolving credit facility of a maximum borrowing amount of $35,000, including swing line loans and letters of credit provided by the Lender and (ii) senior secured term loan facility in the amount of $4,871 (the "Term Facility"). The Term Facility is repayable in monthly installments of $81, which repayments commenced December 1, 2016. The terms of the Credit Facility contain both a lock-box arrangement and subjective acceleration clause. As a result, the amounts outstanding on the revolving credit facility are classified as a short-term liability. The amounts borrowed under the Credit Facility were used to repay the amounts outstanding under the Company's previous credit agreement, for working capital, for general corporate purposes and to pay fees and expenses associated with this transaction. In connection with entering into the Credit Facility, the Company terminated its interest rate swap agreement with the Lender, as referenced in Note 1, Summary of Significant Accounting Policies - Derivative Financial Instruments. Borrowings 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 Facility. The revolver has a rate based on LIBOR plus a 3.75% spread and a prime rate, which resulted in a weighted average rate of 5.7% at June 30, 2018 and the term loan has a rate of 6.3% at June 30, 2018, which was based on LIBOR plus a 4.25% spread. Since the dedesignation of the interest rate swap at the end of the second quarter, the effective fixed rate remained 5.8% after giving effect to the interest rate swap agreement. There is also a commitment fee ranging from 0.15% to 0.375% to be incurred on the unused balance. The Company entered into its First Amendment Agreement ("First Amendment") to the Credit Facility on February 16, 2017. The First Amendment assigned its Lender as Administrative Agent and assigned a portion of its Credit Facility to a participating Lender. Under the Company's Credit Facility, the Company is subject to certain customary loan covenants. These include, without limitation, covenants that require maintenance of certain specified financial ratios, including that the Company meet a minimum EBITDA and the maintenance of a minimum fixed charge coverage ratio. In the event of a default, we may not be able to access our revolver, which could impact the ability to fund working capital needs, capital expenditures and invest in new business opportunities. On August 4, 2017, the Company entered into its Second Amendment Agreement ("Second Amendment") with its Lender to (i) amend certain definitions within its Credit Facility to, among other things, effect the changes described herein and to reset the Fixed Charge Coverage Ratio (as defined in the Credit Facility) to build to a trailing four quarters in each of the fiscal 2018 quarters, commencing with the quarter ended March 31, 2018; (ii) replace certain of its financial covenants outlined in the description of Credit Facility and amend its financial covenants with a revised minimum EBITDA for the four fiscal quarters ending September 30, 2017 and to maintain a fixed charge coverage ratio commencing on December 31, 2017; (iii) reduce its maximum revolving amount of $35,000 to $30,000; and (iv) provide that the Company must use its cash proceeds from the sale of the Irish building discussed in Note 10, Assets Held for Sale and Disposal to reduce the Term Facility by $700 and use the remaining proceeds to reduce the revolver. On November 28, 2017, the Company obtained a consent letter from its Lender which extended to December 31, 2017 the date to consummate such sale of the Irish property. On February 8, 2018, the Company entered into the Third Amendment Agreement (the “Third Amendment”) to its Credit Facility with the Agent and Lenders under the Credit Facility, in which the Company and the Agent and the Lenders agreed to, among other things, (i) amend the interest rate pricing spreads, (ii) add an owned real property location as part of the collateral and sell certain identified assets at our closed location in Alliance, and (iii) adjust the calculation of EBITDA and certain financial covenants, by adding a new minimum EBITDA test for a specific location and changing the timing of the tests and some of the covenant levels. The Company is in compliance with its loan covenants as of June 30, 2018. Foreign subsidiary borrowings As of June 30, 2018 and September 30, 2017, the total foreign debt borrowings (excluding capital leases) were $7,398 and $8,346, respectively, of which $4,973 and $5,805, respectively is the current portion. Current debt as of June 30, 2018 and September 30, 2017, consists of $2,368 and $2,618 of short-term borrowings, $1,432 and $1,340 is the current portion of long-term debt, and $1,173 and $1,847 of factoring, respectively. Interest rates on the term note are based on Euribor rates which range from 1.0% to 4.0%. 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 pledge of receivables under this agreement as short-term debt and continues to carry the receivables on its consolidated condensed balance sheet. The carrying value of the receivables pledged as collateral were $2,641 and $3,548 at June 30, 2018 and September 30, 2017, respectively. Debt issuance costs The Company incurred debt issuance costs related to the prior credit agreement in the amount of $724. However, due to the prior credit agreement being modified in November 2016, the Company wrote off $241 of debt issuance costs and incurred an additional $497 in debt issuance costs. After considering amortization, the amount of debt issuance costs related to the Credit Facility was $785. Due to the amendments outlined above, the Company incurred additional debt issuance costs during fiscal 2017 in the amount of $64 and wrote off an additional $81 of debt issuance costs. In fiscal 2018, in connection with the Third Amendment, the Company incurred an additional $100 of deferred debt issuance costs. The amortized costs are included in interest expense in the accompanying consolidated condensed financial statements. Total debt issuance cost in the amount of $868 is split between the Term Facility and the revolving credit facility. The portion noted above within the debt table relates to the Term Facility in the amount of $75, net of amortization of $29 at June 30, 2018. The remaining $793 of debt issuance cost relates to the revolving credit facility. This portion is shown in the consolidated condensed balance sheet as a deferred charge in other current assets, net of amortization of $327 at June 30, 2018. Refer to Note 11, Subsequent Events, for further information related to the new Credit Agreement signed with a new lender subsequent to June 30, 2018.

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