REVOLVING CREDIT FACILITY AND BANK BORROWINGS

The Company’s borrowings consist of:



	September 30, 2017		December 31, 2016
	(in thousands)
Notes payable	$	1,058	$	2,329
Capital lease obligations	47		49
Total borrowings and capital lease obligations	1,105		2,378
Less: Current portion of borrowings and capital lease obligations	1,070		2,338
Total long-term capital lease obligations	$	35	$	40

Senior Revolving Credit Facility

In December 2011, the Company entered into a revolving credit facility (“the Facility”), pursuant to an Amended and Restated Credit Agreement (as amended, the “Credit Agreement”), with the lenders named therein and PNC Bank, National Association (“PNC”), as a lender and administrative agent for the lenders. The Credit Agreement, as amended, contains certain covenants that restrict certain actions by the Company, including limitations on: (i) stock repurchases to $50.0 million per year, subject to certain restrictions; and (ii) capital expenditures and commitments to $50.0 million per year. The Credit Agreement also requires the Company to meet certain financial covenant ratios that become effective when average outstanding borrowings under the Credit Agreement, including letters of credit, exceed $20.0 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. As of September 30, 2017, the Company was in compliance with all financial covenants.

As of September 30, 2017, the total commitments available from the lenders under the Facility were $80.0 million. At September 30, 2017, the Company had no outstanding borrowings and $1.3 million in outstanding letters of credit under the Facility, which reduce the amounts available for borrowing under the terms of the Facility. As of September 30, 2017 and December 31, 2016, the Company had $78.7 million of available borrowing capacity under the Facility.

On October 13, 2017, the Company entered into the Fourteenth Amendment to the Amended and Restated Credit Agreement which: (i) increased the total commitments under the Facility to $100.0 million from $80.0 million, (ii) added an additional lender under the Facility, (iii) increased the amount of average outstanding borrowings at which financial covenant ratios become effective during certain periods to the lesser of $40.0 million or 40% of the total commitments, (iv) permits certain intercompany loans of up to $375.0 million, and (v) amended certain other provisions to be more favorable to the Company.

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 $6.0 million, with a combined facility limit of RMB 60.0 million, or $9.0 million. As of September 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 incur interest at fixed rates ranging from 1.95% to 2.83%.

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



	September 30, 2017
	(in thousands)
2017 (remainder of year)	$	1,065
2018	13
2019	13
2020	11
2021	3
Total principal debt maturities and capital lease obligations	1,105
Less: current portion	1,070
Non-current portion	$	35