Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Borrowings

v3.8.0.1
Note 6 - Borrowings
 9 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Debt Disclosure [Text Block]
(
6
)
Borrowings
 
Total debt obligations at
March 31, 2018
and
June 30, 2017
consist of the following (in thousands):
 
   
March 31,
    
June 30,
  
   
2018
    
2017
  
                 
Term Loan due 2019
   $
-
     $
13,833
  
Capital leases
    
1,705
      
1,085
  
Total debt obligations
    
1,705
      
14,918
  
Unamortized debt issuance costs
    
-
      
(579
 )
Total debt
    
1,705
      
14,339
  
Less current maturities
    
586
      
2,731
  
Total long-term
   $
1,119
     $
11,608
  
 
 
The Company entered into a
five
year,
$150
million senior secured revolving credit and term loan facility on
October 21, 2014,
as amended (the “Facility”). The Facility, which expires on
October 21, 2019,
provided a single-draw term loan of
$35
million and a revolving credit line of up to
$115
million, subject to borrowing base availability. We incurred financing costs of
$1.5
million under the Facility. The unamortized portion is being amortized over the remaining life of the Facility.
 
At the Company’s option, revolving loans under the Facility bear interest, based on the average availability, at an annual rate of either (a) the London Interbank Offered rate (“LIBOR”) plus
1.5%
to
1.75%,
or (b) the higher of (i) the prime rate, (ii) the federal funds effective rate plus
0.50%,
or (iii) LIBOR plus
1.0%
plus in each case
0.5%
to
0.75%.
 
The Company pays a commitment fee of
0.15%
to
0.25%
per annum on the unused portion of the Facility, and fees on issued letters of credit at an annual rate of
1.5%
to
1.75%
based on the average availability. Certain payments are restricted if the availability under the revolving credit line falls below
20%
of the total revolving credit line, and the Company is subject to pro forma compliance with the fixed charge coverage ratio if applicable.
 
The Facility is secured by all property owned, leased or operated by the Company in the United States and includes certain 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 and share repurchases); sell certain assets; and make investments.
 
The Facility includes a covenant that requires the Company to maintain a minimum fixed charge coverage ratio of
1.1
to
1.0
at all times unless the outstanding term loans are less than
$17.5
million and the fixed charge coverage ratio equals or exceeds
1.25
to
1.0,
in which case the fixed charge coverage ratio ceases to apply and thereafter is only triggered if average monthly availability is less than
15%
of the amount of the revolving credit line. The Company has met the exemption conditions and is currently exempt from the fixed charge coverage ratio covenant.
 
The Company intends to use the Facility for working capital and general corporate purposes, including dividend payments and share repurchases. At
March 31, 2018
and
June 30, 2017,
there was
$0.2
million and
$0.1
million, respectively, of standby letters of credit outstanding under the Facility. Total availability under the Facility was
$114.8
million at
March 31, 2018
and
$114.9
million at
June 30, 2017.
 
At both
March 31, 2018
and
June 30, 2017,
we were in compliance with all the covenants under the Facility.
 
The following table summarizes, as of
March 31, 2018,
the timing of cash payments related to our outstanding long-term debt obligations for the remaining
three
months of fiscal
2018,
and each of the
five
fiscal years subsequent to
June 30, 2018,
and thereafter (in thousands).
 
Periods ending June 30,
  
2018
   $
140
  
2019
    
571
  
2020
    
533
  
2021
    
420
  
2022
    
41
  
2023 and thereafter
    
-
  
Total scheduled debt payments
   $
1,705