Note 6 - Long-term Debt

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

6

-Long-Term Debt

Credit Facilities

On

March

3,

2017,

in connection with the if(we) merger discussed in Note

10

(the “Merger”), the Company entered into a credit agreement (the “Credit Agreement”) with the several banks and other financial institutions party thereto (the “Lenders”) and JPMorgan Chase Bank, N.A., as administrative agent (the “Agent”). The Credit Agreement provides for a

$15

million revolving credit facility (the “Revolving Credit Facility”) and a

$15

million term loan facility (the “Term Loan Facility,” and together with the “Revolving Credit Facility,” the “Credit Facilities”). There were

no

amounts drawn on the Credit Facilities as of

March

31,

2017.

The Company intends to use the proceeds under the Credit Facilities for general purposes, including the Merger. The Company will also use proceeds of the Revolving Credit Facility to finance working capital needs and for general corporate purposes. Amounts under the Revolving Credit Facility

may

be borrowed, repaid and re-borrowed from time to time until the maturity date of the Credit Agreement on

March

3,

2019.

The Term Loan Facility is subject to quarterly amortization of principal in an amount equal to

$1,875,000

per quarter commencing

June

30,

2017

and continuing through maturity. At the Company’s election, loans made under the Credit Facilities will bear interest at either (i)

a base rate (“Base Rate”) plus an applicable margin or (ii) a London interbank offered rate (“LIBO Rate”) plus an applicable margin, subject to adjustment if an event of default under the Credit Agreement has occurred and is continuing. The Base Rate means the highest of (a) the Agent’s “prime rate,” (b) the federal funds effective rate plus

0.50%

and (c) the LIBO Rate for an interest period of

one

month plus

1%.

The Company’s present and future domestic subsidiaries (the “Guarantors”) will guarantee the obligations of the Company and its subsidiaries under the Credit Facilities. The obligations of the Company and its subsidiaries under the Credit Facilities are secured by all of the assets of the Company and the Guarantors, subject to certain exceptions and exclusions as set forth in the Credit Agreement and other loan documents.