Long-Term Debt and Capital Lease Obligations

3 Months Ended

Jan. 31, 2013

Long-Term Debt and Capital Lease Obligations

Long-term debt consists of the following:



	January 31, 2013		October 31, 2012
	(In thousands)
Revolving Credit Facility	$	—	$	—
City of Richmond, Kentucky Industrial Building Revenue Bonds	800		800
Scott County, Iowa Industrial Waste Recycling Revenue Bonds	400		400
Capital lease obligations and other	267		201
Total debt	$	1,467	$	1,401
Less maturities due within one year included in current liabilities	379		368
Long-term debt	$	1,088	$	1,033

On January 28, 2013 the Company entered into a Senior Unsecured Revolving Credit Facility (the Credit Facility) that has a five-year term and permits aggregate borrowings at any time of up to $150 million, with a letter of credit sub-facility, a swing line sub-facility and a multi-currency sub-facility. Borrowings denominated in U.S. dollars bear interest at a spread above LIBOR or a base rate derived from the prime rate. Foreign denominated borrowings bear interest at a spread above the LIBOR applicable to such currencies. Subject to customary conditions, the Company may request that the aggregate commitments under the Credit Agreement be increased by up to $100 million, with total commitments not to exceed $250 million. The Credit Facility replaces the Company's previous Senior Unsecured Revolving Credit Facility that was scheduled to expire on April 23, 2013.

The Credit Facility requires the Company to comply with certain financial covenants. Specifically, the Company must not permit, on a quarterly basis, the ratio of its consolidated EBITDA to its consolidated interest expense to exceed 3.00 to 1. Also, the Company must not permit the ratio of its consolidated funded debt to its consolidated EBITDA (Consolidated Leverage Ratio) to exceed 3.25 to 1. Additionally, the Credit Facility contains certain limitations on additional indebtedness, asset or equity sales and acquisitions. The payment of dividends and other distributions is permitted provided there is no event of default after giving effect to such transactions.

Although there were no borrowings and only $5.6 million of outstanding letters of credit under the Credit Facility as of January 31, 2013, the aggregate availability under the Credit Facility was limited to $81.0 million based on the Company's consolidated EBITDA and the Consolidated Leverage Ratio covenant limit.

The Company borrowed $10.0 million under the Credit Facility during the second quarter of 2013.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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