REVOLVING CREDIT FACILITY AND BANK BORROWINGS

The Company’s borrowings consist of:



	June 30, 2017		December 31, 2016
	(in thousands)
Notes payable	$	1,712	$	2,329
Capital lease obligations	50		49
Total borrowings and capital lease obligations	1,762		2,378
Less: Current portion of borrowings and capital lease obligations	1,722		2,338
Total long-term capital lease obligations	$	40	$	40

Senior Revolving Credit Facility

The Company's Senior Revolving Credit Facility (the "Facility"), as amended, provides for borrowings of up to $80 million through February 2021. The Facility contains certain covenants that restrict certain actions by the Company under the Facility, including limitations on: (i) stock repurchases to $50 million per year, subject to certain restrictions; and (ii) capital expenditures and commitments to $50 million per year. The Facility also requires the Company to meet certain financial covenant ratios that become effective when total borrowings under the Facility, including letters of credit, exceed $20 million during certain periods or if the outstanding borrowings exceed the borrowing base. If the financial covenant ratios are in effect, the Company must maintain a minimum fixed charge coverage ratio of 1.10 to 1.00, and a maximum leverage ratio of 2.00 to 1.00. The weighted average interest rate on borrowings as of June 30, 2017 was 2.49%. As of June 30, 2017, the Company was in compliance with all financial covenants.

As of June 30, 2017, the Company had outstanding letters of credit of $1.3 million, which reduce the amounts available for borrowing under the terms of the Facility. As of June 30, 2017 and December 31, 2016, the Company had $78.7 million of available borrowing capacity under the Facility.

Asia Revolving Credit Facility

The Company’s revolving credit facility agreement (the "Asia Facility") with HSBC Bank (China) Company Limited, Shanghai Branch ("HSBC"), provides the Company uncommitted dual currency revolving loan facilities of up to 40.0 million Chinese Renminbi ("RMB"), or $5.9 million, with a combined facility limit of RMB 60.0 million, or $8.8 million. As of June 30, 2017 and December 31, 2016, borrowings under the Asia Facility remained suspended at the discretion of HSBC. The Asia Facility will mature in February 2021.

Notes Payable

Notes payable to finance the Company’s enterprise software system costs and certain insurance premiums incur interest at fixed rates ranging from 1.95% to 2.83%.

The maturities of the Company's debt and capital lease obligations were:



	June 30, 2017
	(in thousands)
2017 (remainder of year)	$	1,722
2018	13
2019	13
2020	11
2021	3
Total principal debt maturities and capital lease obligations	1,762
Less: current portion	1,722
Non-current portion	$	40