Borrowings

12 Months Ended

Dec. 29, 2018

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 7 — Borrowings

On January 21, 2019, the Company amended and restated its existing credit agreement. See “Note 19” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Financial Condition and Liquidity.”

Previously, on January 21, 2016, the Company entered into a Second Amended and Restated Credit Agreement (“Restated Credit Agreement”) with its issuing bank, JP Morgan Chase Bank, N.A. (“Chase”), and the other lenders identified in the Restated Credit Agreement (collectively, the “Lender”). Under the terms of the Restated Credit Agreement, the Lender made available to the Company a senior revolving credit facility in a maximum amount of up to $35.0 million and a term loan in the principal amount of $7.5 million. The maturity date of the revolving credit facility was January 21, 2019. The credit facility and term debt are secured by substantially all assets of the Company.

In the second quarter of 2018, the Company repaid in full the outstanding revolving borrowings and term loan amounts. Principal amounts repaid in respect of the term loan were not eligible to be re-borrowed.

The Restated Credit Agreement allowed Escalade to request the issuance of letters of credit of up to $5,000,000. Each loan, other than a Eurodollar Borrowing, bore interest at the Alternate Base Rate plus the Applicable Base Rate. Loans comprising each Eurodollar Borrowing bore interest at the Adjusted LIBO Rate for the interest period in effect plus the Applicable Rate. Applicable Rate means the applicable rate per annum set forth below, based upon Escalade’s Funded Debt to Adjusted Ratio as of the most recent determination date:

Funded Debt to Adjusted EBITDA Ratio	Revolving Eurodollar Borrowing			Term Eurodollar Borrowing			ABR Revolving Borrowing			ABR Term Borrowing			Letter of Credit Fee			Commitment Fee
Category 1 Greater than or equal to 2.50 to 1.0		2.50	%		2.75	%		0.50	%		0.75	%		2.50	%		0.45	%
Category 2 Greater than or equal to 2.25 to 1.0 but less than 2.50 to 1.0		2.25	%		2.50	%		0.25	%		0.50	%		2.25	%		0.40	%
Category 3 Greater than or equal to 2.00 to 1.0 but less than 2.50 to 1.0		2.00	%		2.25	%		0.00	%		0.25	%		2.00	%		0.35	%
Category 4 Greater than or equal to 1.75 to 1.0 but less than 2.00 to 1.0		1.75	%		2.00	%		(0.25	%)		0.00	%		1.75	%		0.30	%
Category 5 Less than 1.75 to 1.0		1.50	%		1.75	%		(0.50	%)		(0.25	%)		1.50	%		0.30	%

The Applicable Rate was determined as of the end of each quarter based upon the Company’s annual or quarterly consolidated financial statements and was effective during the period commencing the date of delivery to the agent.

Indebtedness under the Restated Credit Agreement was collateralized by liens on all of the present and future equity of each of the Company’s domestic subsidiaries and substantially all of the assets of the Company. In addition, each direct and indirect domestic subsidiary of Escalade unconditionally guaranteed all of the indebtedness of Escalade arising under the Restated Credit Agreement and secured its guaranty with a first priority security interest and lien on all of its assets. The Pledge and Security Agreement dated April 30, 2009 by and between Escalade and Chase, and each Pledge and Security Agreement dated April 30, 2009 by and between each such Escalade subsidiary and Chase continued in full force and effect, as amended by the Master Amendment to Pledge and Security Agreements dated May 31, 2010 entered into by Chase, Escalade and each such subsidiary. The Unlimited Continuing Guaranty dated April 30, 2009 applicable to each of Escalade’s domestic subsidiaries continued in full force and effect without change.

Short-Term Debt

Short-term debt at fiscal year-ends was as follows:

In Thousands	2018		2017
Short-term debt reclassified from long-term debt	$	—	$	1,250
	$	—	$	1,250

The weighted average interest rate on short-term debt outstanding at December 30, 2017 was 3.19%, respectively.

Long-Term Debt

Long-term debt at fiscal year-ends was as follows:

In Thousands	2018		2017
Senior secured revolving credit facility of $35.0 million with a maturity of January 21, 2019. The interest rate at December 30, 2017 was 3.227%.	$	—	$	18,121
Term loan of $7.5 million with a maturity date of January 21, 2021. The interest rate at December 30, 2017, was 3.188%.		—		5,000
		—		23,121
Portion classified as short-term debt		—		(1,250	)
	$	—	$	21,871