XML 51 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Debt
3 Months Ended
Mar. 31, 2013
Credit Facility And Long Term Debt [Abstract]  
Debt Disclosure [Text Block]

The following table presents the outstanding debt and capital lease obligations as of March 31, 2013 and September 30, 2012:

         
   March 31, September 30, 
    2013  2012 
 Revolving credit facility, 1.11% interest as of March 31, 2013$ 50,100 $ 39,500 
 Sterling revolving credit facility, 1.45% interest as of March 31, 2013  13,854   8,580 
 Capital lease obligations (1)  235   441 
 Total debt and capital lease obligations  64,189   48,521 
  Less: Long-term capital lease obligations  (39)   (104) 
 Total debt included in current liabilities$ 64,150 $ 48,417 
         
 (1) The capital lease obligations have varying maturity dates. 
         

Revolving Credit Facility — On November 1, 2011, MWI Co. as borrower, entered into a Third Amendment to Credit Agreement (the “Third Amendment”) with MWI Veterinary Supply, Inc. and Memorial Pet Care, Inc., as guarantors, and Bank of America, N.A. and Wells Fargo Bank, N.A. as lenders (collectively, the “Lenders”), amending the Credit Agreement dated December 13, 2006, and as amended from time to time, by and among MWI Co., MWI Veterinary Supply, Inc., Memorial Pet Care, Inc. and the Lenders (the “Credit Agreement”). As discussed in Note 3 – Business Acquisitions, MWI Co.'s purchase of the assets of Micro was completed on October 31, 2011, using borrowing capacity that existed prior to the effectiveness of the Third Amendment. The Third Amendment allows for an aggregate revolving commitment of the Lenders under the Credit Agreement of $150,000 and a maturity date of November 1, 2016. Under the Third Amendment, the margin on variable interest rate borrowings ranges from 0.95% to 1.50%. The commitment fee under the Third Amendment ranges from 0.15% to 0.25% depending on the funded debt to EBITDA ratio.  The variable interest rate is equal to the Daily LIBOR Floating Rate or the LIBOR 1-month, 2-month, 3-month or 6-month fixed rate (at MWI Co.'s option) plus the margin.  The Credit Agreement contains financial covenants, including a fixed charge ratio and a funded debt to EBITDA ratio. We were in compliance with all of the covenants under the revolving credit facility as of March 31, 2013 and September 30, 2012.

Sterling revolving credit facilityOn March 15, 2013, Centaur Services Limited (“Centaur”) entered into a First Amendment (the “Amendment”) to the unsecured revolving line of credit facility (the “sterling revolving credit facility”) dated November 5, 2010 with Wells Fargo Bank, N.A. London Branch (“Wells Fargo”). The Amendment increases the maximum loan amount of the Sterling Revolving Credit Facility to £20,000, an increase of £7,500, and extends the term of the facility to November 1, 2016. Interest is based on LIBOR for the applicable interest period plus an applicable margin of .95% to 1.50% and the commitment fee ranges from .15% to .25%, depending on our funded debt to EBITDA ratio. The facility contains financial covenants requiring Centaur to maintain a minimum tangible net worth of £5,000. As of March 31, 2013 and September 30, 2012, Centaur was in compliance with this covenant.

Also on March 15, 2013, Centaur also entered into an uncommitted overdraft facility (the “Overdraft Facility”) with Wells Fargo. The Overdraft Facility allows Centaur to borrow an additional £10,000 to fund short term normal trading cycle fluctuations. The Overdraft Facility will expire on November 1, 2016. Interest on the borrowing under the Overdraft Facility is the same as the terms under the Amendment.