Note 9 - Borrowings |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Text Block] |
(9) Borrowings
Total
debt obligations at September 30, 2011 and June 30, 2011
consist of the following (in thousands):
In
September 2005, we issued $200.0 million in ten-year senior
unsecured notes due 2015 (the "Senior Notes"). The Senior
Notes were issued by Global, bearing an annual coupon rate of
5.375% with interest payable semi-annually in arrears on
April 1 and October 1. We have used the net proceeds of
$198.4 million to improve our retail network, invest in our
manufacturing and logistics operations, and for other general
corporate purposes. During fiscal 2011, the Company reduced
its outstanding debt by $38.2 million. Outstanding debt was
further reduced by $2.2 million during the current fiscal
year.
We
also maintain a $50 million senior secured, asset-based
revolving credit facility (the “Facility”). At
September 30, 2011 and June 30, 2011, we had no revolving
loans and $0.7 million of standby and trade letters of
credit outstanding under the Facility. The Facility is
subject to borrowing base availability and includes a right
for the Company to increase to total facility to $100
million subject to certain conditions. The Facility is
secured by all property owned, leased or operated by the
Company in the United States excluding any real property
owned by the Company and contains customary covenants which
may limit the Company’s ability to incur debt, engage
in mergers and consolidations, make restricted payments
(including dividends), sell certain assets, and make
investments. Remaining availability under the facility
totaled $49.3 million at September 30, 2011 and June 30,
2011 and as a result, covenants and other restricted
payment limitations did not apply. The Facility expires
March 25, 2016, or June 26, 2015 if the Senior Notes have
not been refinanced prior to that date.
At
September 30, 2011 and June 30,
2011, we were in compliance with all covenants of
the Senior Notes and the Facility.
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