Note 3 - Credit Facility | 9 Months Ended |
|---|---|
Oct. 01, 2011 | |
| Line of Credit Facility, Description |
Note
3 – Credit Facility
The
Company has a $50.0 million asset based revolving credit
facility (referred to as the “Credit Facility”)
with Wells Fargo Capital Finance, LLC (“WFCF”).
The Credit Facility has a term of four years, matures on
October 28, 2014 and is secured by substantially all the
domestic assets of the Company and each of its domestic
subsidiaries. The Credit Facility is designed to provide
working capital and letters of credit that will be used
primarily for the purchase and importation of inventory and
for general corporate purposes.
At
October 1, 2011, there were no outstanding borrowings and
approximately $6.3 million outstanding under letters of
credit. Borrowing availability under the Credit Facility was
approximately $19.1 million at October 1, 2011 and the
Company had approximately $5.3 million of unrestricted cash
that was not included in the availability calculation.
On
August 15, 2011, the Company entered into a First Amendment
to Credit Agreement and Consent (the “Amendment and
Consent”) with WFCF. Pursuant to the Consent, WFCF, as
agent under the Credit Facility consented to the Merger and
also waived certain defaults that would otherwise have arisen
under the Credit Facility as a result of the Merger. The
Amendment and Consent also provides that upon satisfaction of
certain conditions, certain provisions of the Credit Facility
will be amended to permit, among other things, the financing
of the operations by means of loans, advances or other cash
investments, the purchase of accounts receivable and
inclusion of such purchased receivables in the calculation of
the borrowing base under the Credit Facility, certain
transactions with affiliates and the existence of certain
indebtedness and liens on the property of the acquired
company that are not expected to be paid in full or
terminated and released in connection with the Merger.
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