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Debt
6 Months Ended
Jun. 30, 2013
Debt [Abstract]  
Debt
Note 7.  Debt
On April 12, 2012, the Company and certain of its subsidiaries entered into an amended and restated credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), whereby Wells Fargo extended to the Company an unsecured line of credit of up to $100,000,000, including a sub-limit for letters of credit of up to $25,000,000.  The new amended and restated credit agreement replaced an expiring $100,000,000 credit facility between the Company and Wells Fargo.  To date, there have been no revolving or term loan borrowings under the credit facilities.  Letters of credit totaling $10,599,000 were outstanding under the new agreement as of June 30, 2013, resulting in additional borrowing ability of $89,401,000 on the Wells Fargo credit facility as of June 30, 2013.  The agreement has a five-year term expiring in April 2017.  Borrowings under the agreement are subject to an interest rate equal to the daily one month LIBOR rate plus a 0.75% margin.  The unused facility fee is 0.175%.  Interest only payments are due monthly.  The agreement contains certain financial covenants, including provisions concerning required levels of annual net income, minimum tangible net worth and maximum allowed capital expenditures.  The Company was in compliance with these covenants as of June 30, 2013.

The Company’s South African subsidiary, Osborn Engineered Products SA (Pty) Ltd (“Osborn”), has a credit facility of $7,586,000 (ZAR 75,000,000) to finance short-term working capital needs, as well as to cover performance letters of credit, advance payment and retention guarantees. As of June 30, 2013, Osborn had $223,000 of borrowings, which are included in other current liabilities in the balance sheet, and $1,560,000 in performance, advance payment and retention guarantees outstanding under the facility. The facility is unsecured and no unused facility fees are charged.  As of June 30, 2013, Osborn had available credit under the facility of $5,803,000. The interest rate is 0.25% less than the South Africa prime rate, resulting in a rate of 8.25% as of June 30, 2013.

The Company’s Australian subsidiary, Astec Australia Pty Ltd (“Astec Australia”), has a credit facility to finance short-term working capital needs of $92,000 (AUD 100,000), a bank guarantee facility of $1,206,000 (AUD 1,300,000) to facilitate contractual commitments and banking arrangements to finance foreign exchange dealer limit orders of up to $6,956,000 (AUD 7,500,000), secured by cash balances in the amount of $696,000 (AUD 750,000) and a $1,600,000 letter of credit issued by the parent Company.  No amounts were outstanding under the credit facility as of June 30, 2013; however, performance guarantees in the amount of $847,000 were outstanding under the bank guarantee facility as of June 30, 2013.  The interest rate is the Australian adjusted Bank Business Rate plus a margin of 1.05%. The interest rate was 10.92% as of June 30, 2013.