Note 9 - Borrowings
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Dec. 31, 2011
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Debt Disclosure [Text Block] |
(9)
Borrowings
Total
debt obligations at December 31, 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 $12.1 million during the current fiscal
year.
We
also maintain a $50 million senior secured, asset-based
revolving credit facility (the “Facility”). At
December 31, 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 the 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 December 31, 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
December 31, 2011 and June 30, 2011, we were in compliance
with all covenants of the Senior Notes and the
Facility.
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