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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.