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DEBT

Letters of Credit

We have issued letters of credit as security deposits for certain of our domestic leases. These letters of credit are secured by pledged certificates of deposit which are classified as Restricted Certificates of Deposit on our balance sheets. The terms of our leases require us to renew these letters of credit at least

days prior to their expiration dates for successive terms of

not

less than

one

year until lease expiration.

Our outstanding letters of credit at

June 30, 2020

and

December 31, 2019

consisted of the following:

				Letters of Credit Amount Outstanding
	Original L/C Issue Date	L/C Expiration Date	Lease Expiration Date	June 3 0 , 2020		December 31, 2019
Mt. Laurel, NJ	3/29/2010	4/30/2021	4/30/2021	$	90	$	90
Mansfield, MA	10/27/2010	12/31/2024	12/31/2024		50		50
				$	140	$	140

Line of Credit

As previously indicated in Note

April 10, 2020 (

the “Closing Date”) we entered into the Agreement with M&T. Under the terms of the Agreement, M&T has provided us with a

$7,500

revolving credit facility under which our domestic subsidiaries, Ambrell, EMS LLC, Temptronic and Silicon Valley, are guarantors (collectively, the “Guarantors”). The revolving credit facility has a

364

-day contract period that began on the Closing Date and expires on

April 9, 2021 (

the “Contract Period”). The principal balance of the revolving credit facility accrues interest at the LIBOR rate plus

2.5%.

In the event the current LIBOR rate is

longer available or representative, the Agreement includes a mechanism for providing an alternate benchmark. Interest payments are due on a monthly basis, and principal payments are due, along with any accrued and unpaid interest thereon, on the earlier of (a) the expiration of the Contract Period, or (b) on demand upon the occurrence of an event of default that is continuing. As of

June 30, 2020,

we had

$7,500

available to borrow under this facility.

The Agreement contains customary events of default including, but

not

limited to, the failure by us to repay obligations when due, violation of provisions or representations provided in the Agreement, bankruptcy of inTEST Corporation, suspension of the business of inTEST Corporation or any of our subsidiaries and certain material judgments. After expiration of the Contract Period, or if during the continuance of an event of default, interest will accrue on the principal balance at a rate of

in excess of the then applicable non-default interest rate. Our obligations under the Agreement are secured by liens on substantially all our tangible and intangible assets. The Agreement includes customary affirmative, negative and financial covenants, including a maximum ratio of assets to liabilities and a fixed charge coverage ratio.

This facility was put in place to provide us with additional liquidity in response to the current business environment, as a result of COVID-

19.

During the

three

months ended

June 30, 2020,

we drew down

$2,800

on our revolving credit facility. This amount was fully repaid during this same period.

Paycheck Protection Program Loans

As discussed more fully in Note

to our consolidated financial statements in our Quarterly Report on Form

-Q for the

three

months ended

March 31, 2020 (

“Q1

2020

Form

-Q”) filed on

May 13, 2020

with the Securities and Exchange Commission, during

April 2020

we applied for and received loans through the Paycheck Protection Program (the “PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) administered by the U.S. Small Business Administration (the “SBA”) totaling

$2,829.

We repaid the full amount of the PPP loans on

May 5, 2020

with the applicable interest.