Long-term Debt and Line of Credit

12 Months Ended

Sep. 30, 2021

Long-term Debt and Line of Credit [Abstract]

11.	Long-term Debt and Line of Credit

2020 Credit Agreement

On February 2, 2021, the Company entered into the Incremental Amendment No. 1 (the “First Amendment”) to Amend the Credit Agreement (as defined below), to among other things, provide for an incremental term loan (the “Incremental Term Loan”) in an aggregate principal amount equal to $30.0 million, which will be added to, and constitute a part of, the existing $80.0 million term loan. The Incremental Term Loan will increase the existing term loan and will be on the same terms applicable to the existing term loan.

On July 22, 2020, the Company entered into a Credit Agreement (the “Credit Agreement”), with Truist Bank. The Credit Agreement provides for a $30.0 million revolving credit facility that may be used for revolving credit loans (including up to $5.0 million in swingline loans) and up to $5.0 million in letters of credit from time to time, and a $80.0 million term loan. Subject to certain conditions, the available amount under the revolving credit facility and the term loans may be increased by $50.0 million in the aggregate. The Credit Agreement bears interest at a rate that is equal to LIBOR for such interest period plus an applicable margin of up to 3.00%, subject to step-downs to be determined based on the consolidated leverage ratio. The revolving credit facility is subject to an unused line fee of up to 0.40%, subject to step-downs to be determined based on the consolidated leverage ratio. The revolving credit facility matures on July 22, 2025. The term loan is repayable in installments beginning on March 31, 2021, with the remainder due on July 22, 2025.

The Credit Agreement is collateralized by certain real and personal property (including certain capital stock) of the Company and its subsidiaries. The collateral does not include inventory and certain other assets of the Company’s subsidiaries financed under the Inventory Financing Facility. The Credit Agreement is subject to certain financial covenants related to the maintenance of a minimum fixed charge coverage ratio and a maximum consolidated leverage ratio. The credit agreement also contains non-financial covenants and restrictive provisions that, among other things, limit the ability of the Company to incur additional debt, transfer or dispose of all of its assets, make certain investments, loans or payments and engage in certain transactions with affiliates. The Company was in compliance with all covenants at September 30, 2021.

Long-term debt consisted of the following at:

($ in thousands)	September 30, 2021			September 30, 2020
Term note payable to Truist Bank, secured and bearing interest at 2.75% at September 30, 2021 and 3.0% at September 30, 2020. The note requires quarterly principal payments commencing on March 31, 2021 and maturing with a full repayment on July 22, 2025	$	105,875		$	80,000
Revolving note payable for an amount up to $30.0 million to Truist Bank		-			-
Note payable to commercial vehicle lenders secured by the value of the vehicles bearing interest at rates ranging from 0.0% to 8.9% per annum. The note requires monthly installment payments of principal and interest ranging from $100 to $5,600 through July 2028		3,248			2,454
Note payable to Central Marine Services, Inc., unsecured and bearing interest at 5.5% per annum. The note requires monthly interest payments, with a balloon payment of principal due on February 1, 2022		2,164			2,164
Note payable to Tom George Yacht Group, unsecured and bearing interest at 5.5% per annum. The note requires monthly interest payments, with a balloon payment of principal due on December 1, 2023		2,056			-
Note payable to Ocean Blue Yacht Sales, unsecured and bearing interest at 5.0% per annum. The note requires quarterly interest payments, with a balloon payment of principal due on February 1, 2022		1,920			1,920
Note payable to Lab Marine, Inc., unsecured and bearing interest at 6.0% per annum. The note was repaid in full on March 1, 2021		-			1,500
Note payable to Slalom Shop, LLC, unsecured and bearing interest at 5.0% per annum. The note requires quarterly interest payments, with a balloon payment of principal due on December 1, 2021		1,271			1,271
Note payable to Bosun’s Marine, Inc., unsecured and bearing interest at 4.5% per annum. The note was repaid in full on June 1, 2021		-			1,227
Note payable to Rebo, Inc., unsecured and bearing interest at 5.5% per annum. The note was repaid in full on April 1, 2021		-			1,000
Total debt outstanding		116,534			91,536
Less current portion (net of current debt issuance costs)		(11,366	)		(7,419	)
Less unamortized portion of debt issuance costs		(2,094	)		(2,140	)
Long-term debt, net of current portion and unamortized debt issuance costs	$	103,074		$	81,977

Principal repayment requirements of long-term debt at September 30, 2021 are as follows (in thousands):

Year ending September 30,
2022	$	11,893
2023		8,500
2024		13,073
2025		82,902
2026		127
Thereafter		39
Total principal payments	$	116,534

Debt issuance costs are amortized on a straight-line basis over the life of the loan, which approximates the effective interest method. During 2021 and 2020, the Company capitalized loan costs of $0.7 million and $3.9 million, respectively, and had accumulated amortization of $0.8 million and $0.1 million as of September 30, 2021 and 2020, respectively. In connection with the prepayment of the Term and Revolver Credit Facility with Goldman Sachs Specialty Lending Group, L.P., the Company wrote off unamortized debt issuance costs of $2.4 million which was included in loss on extinguishment of debt in the Consolidated Statements of Operations for the year ended September 30, 2020. Amortization for the years ended September 30, 2021, 2020 and 2019 amounted to $0.7 million, $0.4 million and $0.3 million, respectively, and is included in interest expense.

The Company had no outstanding letters of credit as of September 30, 2021.