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Line of Credit
6 Months Ended
Sep. 30, 2011
Line of Credit Facility [Abstract] 
5. Line of Credit

5. Line of Credit

Prior to September 1, 2011, the Company had a $140,000,000 line of credit facility expiring on November 30, 2011.

On September 1, 2011, the Company executed a new agreement with its consortium of lenders that increases the size of the line of credit facility (the “Line”) from $140,000,000 to $150,000,000. The pricing of the Line, which expires on November 30, 2013, is 300 basis points above 30-day LIBOR (4.00% at September 30, 2011 and March 31, 2011) with a 1% floor on LIBOR or at the prime rate. Prime rate borrowings are generally less than $5.0 million. Pricing is the same as it was under the previous facility. Pledged as collateral for this credit facility are all of the assets of the Company. The outstanding amount of the credit facility was approximately $117,000,000 and $118,000,000 as of September 30, 2011 and March 31, 2011, respectively. The amount available under the line of credit was approximately $33,000,000 and $22,000,000 as of September 30, 2011 and March 31, 2011, respectively.

 

The facility requires compliance with certain financial ratios and covenants and satisfaction of specified financial tests, including maintenance of asset quality and performance tests. Dividends do not require consent in writing by the agent and majority lenders under the new facility as long as the Company is in compliance with a net income covenant. As of September 30, 2011, the Company was in full compliance with all debt covenants.