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Note 8 - Long-term Debt Obligation
6 Months Ended
Dec. 31, 2011
Note 8 - Long-term Debt Obligation Disclosure  
Note 8 - Long-term Debt Obligation
(8)  Long-term Debt Obligation
In August 2011, the Company refinanced its borrowings with Key Bank National Association (Lender), and entered into a $50 million revolving credit facility (Line) agreement.  The Line bears interest at the 90-day London inter-bank offer rate (LIBOR), plus 100 to 200 basis points, or at the Lender’s prime rate, plus 0 to 75 basis points, based upon the Company's earnings before interest and taxes and depreciation and amortization (EBITDA) performance at the end of each quarter as measured by the leverage ratio, total indebtedness divided by EBITDA.  The Company pays a commitment fee (10 to 40 basis points) for any unused portion of the Line, up to $50 million, based upon the same EBITDA formula identified above.  The Company has an option to borrow an additional $50 million, $100 million total, subject to the approval of the Lender.
 
The Company’s indebtedness and obligations are guaranteed by five of the Company’s domestic subsidiaries, as well as an assignment of the Company’s interest in its foreign subsidiary.  Certain financial and compliance covenants also need to be met on a quarterly basis (leverage ratio, minimum liquidity, and interest coverage). The principle payments are due on the maturity date, August 2014.
 
In the six months ended December 31 , 2011, the Company paid $ 30.0 million on the Company’s indebtedness. As of December 31, 2011 there were no borrowings outstanding under the Company’s revolving credit agreement.