Note 12 - Long-term Debt

9 Months Ended

Sep. 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

€2,000

(

$2,180

as of

September 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.

On

September 10, 2019,

the Spanish Ministry of Industry, Commerce and Tourism, under its Re-industrialisation Programme (“REINDUS”), loaned STR Spain an aggregate principal amount of

€2,622

(approximately

$2,858

as of

September 30, 2019).

STR Spain expects to use the loan proceeds to further help finance the launch and operation of its food packaging products business. The loan matures in

September 2029,

with principal due and payable in

seven

equal annual installments of

€375

each, commencing in

September 2023.

Interest, which is payable annually in arrears, accrues at the annual rate of

1.647%

for the life of the loan. The loan is partially secured by bank guarantees in an initial total amount of

€900.

Of the

€2,622

that was received under the loan,

€900

(approx.

$981

as of

September 30, 2019)

was pledged to support a required bank guaranty. The required total amount of the bank guarantees is reduced over the term of the loan as principal and interest payments are made.