Note 9 - Borrowings
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Mar. 31, 2012
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Debt Disclosure [Text Block] |
(9) Borrowings
Total
debt obligations at March 31, 2012 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 an aggregate of $10.8 million
during the current fiscal year.
We
also maintain a $50 million senior secured, asset-based
revolving credit facility (the “Facility”). We
have not had any revolving loans under the Facility at any
time. At March 31, 2012 and June 30, 2011, there were $0.6
million and $0.7 million of standby and trade letters of
credit, respectively, 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 $49.4 million at March 31, 2012 and
$49.3 million at 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.
During
the quarter ended March 31, 2012, the Company entered into
a six year lease to receive financing, maintenance and
recordkeeping services for our truck fleet. The lease is
treated as a capital lease, and the present value of the
minimum future lease payments of the financed portion is
$1.3 million, with $0.2 million due within the next year.
The lease term expires in February 2018.
At
March 31, 2012 and June 30, 2011, we were in compliance
with all covenants of the Senior Notes and the
Facility.
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