Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt (Tables)

v3.20.1
Long-Term Debt (Tables)
 3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Long-term Debt

Long-term debt consists of the following at March 31, 2020 and December 31, 2019:

 

(Amounts in Thousands)   March 31, 2020     December 31, 2019  
Revolving Credit facility dated October 31, 2011, as amended, borrowings based upon eligible accounts receivable, subject to monthly borrowing base calculation, balance due on March 24, 2021. Effective interest rate for the first quarter of 2020 was 6.4%. (1)   $ — (5)   $ 321  
Term Loan dated October 31, 2011, as amended, payable in equal monthly installments of principal, balance due on March 24, 2021. Effective interest rate for the first quarter of 2020 was 6.9%. (1)         1,739 (2)(5)         1,827 (2)
Promissory Note dated April 1, 2019, payable in twelve monthly installments of interest only, starting May 1, 2019 followed with twelve monthly installments of approximately $208 in principal plus accrued interest. Interest accrues at annual rate of 4.0%. (3)         1,470 (4)         1,732 (4)
Total debt     3,209       3,880  
Less current portion of long-term debt     1,614 (4)     1,300 (4)
Long-term debt   $ 1,595     $ 2,580  

 

(1) Our revolving credit facility is collateralized by our accounts receivable and our term loan is collateralized by our property, plant, and equipment. Effective July 1, 2019, monthly installment principal payment on the Term Loan was amended to approximately $35,500 from approximately $101,600.

 

(2) Net of debt issuance costs of ($74,000) and ($92,000) at March 31, 2020 and December 31, 2019, respectively.

 

(3) Uncollateralized note.

 

(4) Net of debt discount/debt issuance costs of ($198,000) and ($248,000) at March 31, 2020 and December 31, 2019, respectively. The Promissory Note provides for prepayment of principal over the term of the Note without penalty. The Company made prepayments of principal of $312,000 in the first quarter of 2020 and $520,000 in 2019 which were reflected in the current portion of the debt.

 

(5) As discussed in Note 16 – “Subsequent Events – Credit Facility,” on May 8, 2020, the Company entered into a new loan agreement, replacing the Revised Loan Agreement dated October 31, 2011 as discussed below, with PNC. The new loan agreement has a maturity date of May 15, 2024. In accordance with ASC 470, “Debt,” this post balance-sheet date agreement demonstrated the Company’s ability to refinance its short-term obligations on a long-term basis; therefore, the Company has reclassified the current portion of the outstanding debt to long-term except for $427,000 in principal payments that will be due by March 31, 2021 (see Note 16 - “Subsequent Events – Credit Facility” for further details of this new loan agreement).