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Note 12 - Long-term Debt
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Long-term Debt [Text Block]
NOTE
12—LONG
-TERM DEBT
 
On
March 13, 2019,
the Company’s wholly owned subsidiary, STR Spain, entered into a Loan with Mortgage Guarantee (the “Loan Agreement”) with the Regional Society of Promotion of the Principality of Asturias, SA (the “Lender”), for a term loan (the “Loan”) in the aggregate principal amount of a
€2,000
(
$2,274
as of
June 30, 2019).
STR Spain is required to use the loan proceeds to help finance the launch and operation of its food packaging business. The Loan matures on
December 31, 2025,
with principal due and payable in equal quarterly installments of
€100
each, commencing on
March 31, 2021.
Interest, which is payable quarterly in arrears, accrues at the annual EURIBOR rate (as such term is defined in the Loan agreement) plus an applicable margin. During the
first
two
years, the applicable margin is
2%,
and thereafter increases by
1%
per year until the applicable margin is
5%
in the
fifth
year of the Loan. The Loan
may
be prepaid at any time without premium or penalty. The Loan is secured by a mortgage of STR Spain’s business and certain facilities, and contains customary covenants, including a covenant prohibiting STR Spain from making distributions to the Company, as sole shareholder, without the prior approval of the Lender. In connection with the Loan, the Company has separately agreed to provide STR Spain with resources to support the Loan and the continuity of the packaging initiative.