Note J - Long-term Debt

9 Months Ended

Mar. 31, 2017

J.	Long-term Debt

Long-term debt at

March

31,

2017

and

June

30,

2016

consisted of the following:

	March 31, 2017		June 30, 2016
Revolving loan	$	8,955	$	8,478
Other		22		23
Subtotal		8,977		8,501
Less: current maturities and short-term borrowings		-		-
Total long-term debt	$	8,977	$	8,501

The revolving loan agreement as of

March

31,

2017

pertains to the revolving loan facility which the Company entered into on

April

22,

2016

with Bank of Montreal (the “BMO Agreement”). The BMO Agreement is secured by substantially all of the Company’s personal property, including accounts receivable, inventory, and certain machinery and equipment of its primary manufacturing facility in Racine, Wisconsin, and the personal property of Mill-Log Equipment Co., Inc., a wholly-owned domestic subsidiary of the Company. The BMO Agreement provides for a borrowing base calculation to determine borrowing capacity. This capacity will be based upon eligible domestic inventory, eligible accounts receivable and machinery and equipment, subject to certain adjustments. As of

March

31,

2017,

the Company’s borrowing capacity under the terms of the BMO Agreement was approximately

$25,635,

and the Company had approximately

$15,738

of available borrowings. As of

March

31,

2017,

the interest rate under this agreement was

2.53%.

The Company’s revolving loan agreement approximates fair value at

March

31,

2017

and

June

30,

2016.

If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level

in the fair value hierarchy.