Subsequent Events

12 Months Ended

Dec. 31, 2013

Subsequent Events

Subsequent Events

20. Subsequent Events

        Subsequent to December 31, 2013, we sold 166,247 shares of our common stock under the "at-the-market" stock offering program as described in Footnote 14 for aggregate net proceeds of $2.3 million. As of March 12, 2014, 776,636 shares have been sold under this program for aggregate net proceeds of $11.3 million, of which 703,509 of the shares sold were issued from treasury.

        Under the terms of our $23.0 million term loan, we are required to make mandatory principal payments associated with the sale of our common stock under our stock offering program equal to 25% of the net proceeds. In 2014 as a result of sales of our common stock, we made additional principal payments of $1.3 million. Additionally, we are required to make mandatory principal payments associated with any asset sales, subject to certain exceptions. As a result of the sale of our Forkardt Swiss business, in January 2014 we made an additional principal payment of CHF 2.2 million ($2.4 million equivalent) on the term loan.

        On January 7, 2014, Hardinge Jiaxing amended its secured credit facility with a local bank. The amendment increased the total availability under facility from CNY 34.2 million (approximately $5.6 million) to CNY 59.0 million (approximately $9.7 million) or its equivalent in other currencies. The facility, which expires on December 20, 2014, is available for working capital and letter of credit purposes. Borrowings for working capital purposes are limited to CNY 39.0 million (approximately $6.4 million). The facility is secured by real property owned by the subsidiary. The interest rate on the credit facility, currently at 6.60% is based on the basic interest rate as published by the People's Bank of China, plus a 10% mark-up.