L.	Long-term Debt

June 29, 2018,

the Company entered into a new credit agreement (the “Credit Agreement”) with BMO Harris Bank N.A. (“BMO”) that provided for the assignment and assumption of the previously existing loans between the Company and Bank of Montreal (the

“2016

Credit Agreement”) and subsequent amendments into a term loan (the “Term Loan”) and revolving credit loans (each a “Revolving Loan” and, collectively, the “Revolving Loans,” and, together with the Term Loan, the “Loans”). Pursuant to the Credit Agreement, BMO agreed to make the Term Loan to the Company in a principal amount

not

to exceed

$35,000

and the Company

may,

from time to time prior to the maturity date, enter into Revolving Loans in amounts

not

to exceed, in the aggregate,

$50,000

(the “Revolving Credit Commitment”). The Credit Agreement also allows the Company to obtain Letters of Credit from BMO, which if drawn upon by the beneficiary thereof and paid by BMO, would become Revolving Loans.

Borrowings under the Credit Agreement are secured by substantially all of the Company’s personal property, including accounts receivable, inventory, machinery and equipment, and intellectual property, and the personal property of Mill-Log Equipment Co., Inc. (“Mill-Log”), a wholly-owned domestic subsidiary of the Company. The Company has also pledged

100%

of its equity interests in certain domestic subsidiaries and

65%

of its equity interests in certain foreign subsidiaries. To effect these security interests, the Company and Mill-Log entered into various amendments and assignment agreements that consent to the assignment to BMO of certain agreements previously entered into between the Company and Mill-Log with Bank of Montreal in connection with the

2016

Credit Agreement. The Company also entered into a Collateral Assignment of Rights under Purchase Agreement for its acquisition of Veth Propulsion described in Note B.

July 2, 2018,

in connection with the acquisition of Veth Propulsion, as described in Note B, the Company drew a total of

$60,729

of additional borrowings on the new credit facility, consisting of a

$35,000

Term Loan payable and revolver borrowings of

$25,729.

September 25, 2018,

the Company used the proceeds of a stock offering (see Note M) of

$32,310

to partially pay down the Term Loan and Revolving Loans.

Long-term debt at

December 28, 2018

and

June 30, 2018

consisted of the following:

	December 28, 2018		June 30, 2018
Revolving loans	$	35,815	$	4,787
Term loan (due January 2020)		10,837		-
Other		34		37
Total long-term debt	$	46,686	$	4,824

During the

two

quarters ended

December 28, 2018,

the average interest rates paid on loans were as follows:

5.20%

on the Term Loan,

2.25%

on the euro revolver, and

4.45%

on the USD revolver.

As of

December 28, 2018,

the Company’s borrowing capacity under the terms of the Credit Agreement was

$50,000,

and the Company had approximately

$14,185

of available borrowings. In addition to the Credit Agreement, the Company has established unsecured lines of credit that are used from time to time to secure certain performance obligations by the Company.

The Company’s borrowings described above approximates fair value at

December 28, 2018

and

June 30, 2018.

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.