Debt

12 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Debt

(9) Debt

Long-term debt

	June 30,
	2015		2014
Revolving bank loans	$	45,000	$	32,000
Term bank loans		62,000		70,000
Mortgage		3,157		3,355
Other		-		146
		110,157		105,501
Less current portion		10,197		8,343
	$	99,960	$	97,158

Credit Facilities

On April 30, 2014, and in connection with the purchase of PACK, Aceto entered into a new Credit Agreement (the “Credit Agreement”) with three domestic financial institutions. The Credit Agreement terminated the Credit Agreement, dated December 31, 2010. On June 25, 2015, Aceto entered into Amendment No. 1 to its Credit Agreement dated April 30, 2014 (together with the Credit Agreement, the “Amended Credit Agreement”). The Amended Credit Agreement increased the aggregate revolving commitment (the “Revolving Commitment”) under the existing credit facility from $60,000 to $75,000. Aceto may borrow, repay and reborrow during the period ending April 30, 2019, up to but not exceeding at any one time outstanding $75,000 under the Revolving Commitment. The Revolving Commitment provides for (i) Adjusted LIBOR Loans (as defined in the Amended Credit Agreement), (ii) Alternate Base Rate Loans (as defined in the Amended Credit Agreement) or (iii) a combination thereof. As of June 30, 2015, the Company borrowed Revolving Loans aggregating $45,000 which loans are Adjusted LIBOR Loans at interest rates ranging from 2.03% to 2.41% at June 30, 2015. The Amended Credit Agreement also allows for the borrowing up to $70,000 (the “Term Commitment”). The Term Commitment interest may be payable as (i) an Adjusted LIBOR Loan, (ii) an Alternate Base Rate Loan, or (iii) a combination thereof. The Company borrowed a Term Loan of $70,000 on April 30, 2014 to partially finance the acquisition of PACK. As of June 30, 2015, the remaining amount outstanding under the amortizing Term Loan is $62,000 and is payable as an Adjusted LIBOR Loan at an interest rate of 2.03% at June 30, 2015. Proceeds of the Term Commitment and a portion of the proceeds of the Revolving Commitment were used to fund the initial cash consideration for PACK and to repay the outstanding balance of term loans from the Credit Agreement dated December 31, 2010.

The Term Loan is payable as to principal in nineteen consecutive quarterly installments, which commenced on September 30, 2014 and will continue on each December 31, March 31, and June 30 thereafter, each in the amount set forth below opposite the applicable installment, provided that the final payment on the Term Loan Maturity Date (as defined in the Amended Credit Agreement) shall be in an amount equal to the then outstanding unpaid principal amount of the Term Loan:

Installment	Amount
1 through 4	$	2,000
5 through 8	$	2,500
9 through 12	$	3,000
13 through 16	$	4,000
17 through 19	$	6,000

As such, the Company has classified $10,000 of the Term Loan as short-term in the consolidated balance sheet at June 30, 2015. The Amended Credit Agreement also provides that commercial letters of credit shall be issued to provide the primary payment mechanism in connection with the purchase of any materials, goods or services by us in the ordinary course of business. The Company had open letters of credit of approximately $21 and $105 at June 30, 2015 and June 30, 2014 respectively. The terms of these letters of credit are all less than one year. No material loss is anticipated due to non-performance by the counterparties to these agreements.

The Amended Credit Agreement provides for a security interest in all of our personal property. The Amended Credit Agreement contains several financial covenants including, among other things, maintaining a minimum level of debt service. The Company is also subject to certain restrictive covenants, including, among other things, covenants governing liens, limitations on indebtedness, limitations on guarantees, sale of assets, sales of receivables, and loans and investments. The Company was in compliance with all covenants at June 30, 2015.

The Company has available lines of credit with foreign financial institutions. At June 30, 2015, the Company had available lines of credit with foreign financial institutions totaling $7,391. At June 30, 2014, the Company had available lines of credit with foreign financial institutions totaling $8,798. The Company has issued a cross corporate guarantee to the foreign banks. Short term loans under these agreements bear interest at a fixed rate of 5.0% at June 30, 2015, 2014 and 2013. The Company is not subject to any financial covenants under these arrangements.

Under the above financing arrangements, the Company had $107,000 in bank loans and $21 in letters of credit leaving an unused facility of $37,370 at June 30, 2015. At June 30, 2014 the Company had $102,146 in bank loans and $251 in letters of credit leaving an unused facility of $36,693.

Mortgage

On June 30, 2011, the Company entered into a mortgage payable for $3,947 on its new corporate headquarters, in Port Washington, New York. This mortgage payable is secured by the land and building and is being amortized over a period of 20 years. The mortgage payable, which was modified in October 2013, bears interest at 4.92% as of June 30, 2015 and matures on June 30, 2021. 

Maturity of Long-term Debt

Long-term debt matures by fiscal year as follows:

2016	$	10,197
2017		12,197
2018		16,197
2019		69,197
2020		197
Thereafter		2,172
	$	110,157