Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.5.0.2
Debt
3 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
Debt

Note (3) - Debt: At September 30, 2016, the Company had a revolving line of credit facility (the “2011 Credit Facility”) which allowed for borrowings of up to $2,250,000. Borrowings under the 2011 Credit Facility, if any, bore bear interest at 2.50% per annum above the Adjusted LIBOR Market Index Rate. The maturity date under the 2011 Credit Facility was November 1, 2016. The Company’s obligations under the 2011 Credit Facility were guaranteed by the Company’s subsidiaries and collateralized by substantially all of the assets of the Company and its subsidiaries. The 2011 Credit Facility required the maintenance of certain fixed charge coverage and leverage ratios and contained other restrictive covenants, including limitations on the extent to which the Company and its subsidiaries could incur additional indebtedness, pay dividends, guarantee indebtedness of others, grant liens, sell assets and make investments. The Company was in compliance with these covenants at September 30, 2016 and June 30, 2016. No amounts were outstanding under the 2011 Credit Facility at September 30, 2016 or June 30, 2016, nor were there any amounts outstanding under the 2011 Credit Facility at any time during fiscal 2016 or the three months ended September 30, 2016.

 

Effective October 7, 2016, the 2011 Credit Facility was terminated in connection with the Company’s entry into a new $20,000,000 credit agreement, consisting of a maximum $15,000,000 million revolving line of credit and a $5,000,000 term loan. See Note 10, Subsequent Events, for additional information regarding the Company’s new credit facility.