The Company borrows money under a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”) which governs the terms of a revolving credit facility (the “PNC Revolving Credit Facility”) and a long-term debt facility (the “Long-Term Debt Facility” and, together with the PNC Revolving Credit Facility, the “PNC Facilities”). The PNC Facilities have terms ending on Advances made under the PNC Revolving Credit Facility bear interest at the U.S. base rate plus The applicable interest rate for the Long-Term Debt Facility is U.S. base rate plus The base commercial lending rate should approximate prime rate.  

 

The maximum amount of funds available under the PNC Revolving Credit Facility is Availability under the PNC Revolving Credit Facility is subject to certain conditions, including borrowing base conditions based on eligible inventory and accounts receivable, and certain conditions as determined by the lender. The Company is required to use a “lock-box” arrangement for the PNC Revolving Credit Facility, whereby remittances from customers are swept daily to reduce the borrowings under the PNC Revolving Credit Facility. As at the funds available to borrow under the PNC Revolving Credit Facility after deducting the current borrowing base conditions was ( ).

 

On the Company entered into the Thirteenth Amendment (“Thirteenth Amendment”) of the Revolving Credit and Security Agreement, which was initially entered into on with PNC.

 

Pursuant to the Thirteenth Amendment, the Lender has made a facility available to fund the purchase of equipment to a maximum amount of (the “Equipment Facility”). Loans advanced for the purchase of equipment in Mexico specifically shall exceed in aggregate. All such advances under the Equipment Facility shall exceed percent () of the net cost of the equipment being purchased. The Equipment Facility has been available to the Company during the period commencing on the and ending on the “Borrowing Period”). At the end of the Borrowing Period, the Company will be required to repay the Equipment Facility over a () year period, payable monthly. The Thirteenth Amendment sets the applicable interest rate margins (which margins are added to an interest rate based upon LIBOR or the U.S. base rate, as applicable, to determine the applicable interest rate) based on U.S. base rate plus The Equipment Facility is governed by the terms and conditions of the PNC Facilities and as such has a term ending on

 

The PNC Long-Term Debt Facility of matures on with quarterly principal payments of with the remaining balance due at maturity.

 

At ( ) was outstanding under the PNC Revolving Credit Facility and is classified as a current liability based on the requirement to hold a “lock-box” under the terms of the PNC Revolving Credit Facility.

 

At ( ) was outstanding under the PNC Long-Term Debt Facility.

 

At was outstanding under the PNC Equipment Loan.

 

The PNC Facilities are a joint and several obligations of the Company and its subsidiaries that are borrowers under the facilities and are jointly and severally guaranteed by other subsidiaries of the Company. Repayment under the PNC Facilities is collateralized by the assets of the Company and each of its subsidiaries.

 

 

The PNC Facilities agreement contains certain financial and non-financial covenants.

 

The financial covenants require the Company to maintain minimum consolidated fixed charge coverage ratio and limit unfunded capital expenditures (all as defined in the credit agreement governing the PNC Facilities).  The Company must maintain a minimum fixed charge coverage ratio is in effect for the months ended months ended months ended and thereafter on a rolling month basis until

 

The Company is in compliance with the financial covenants included in the PNC Facilities as of