Note E -- Loans Payable and Long-Term Debt

Maturities of long-term debt are as follows:


		FISCAL YEARS ENDING APRIL 30
(in thousands)	2013		2014		2015		2016		2017		2018 AND THERE- AFTER		TOTAL OUTSTAND- ING

Revolving credit facility	$	0	$	0	$	10,000	$	0	$	0	$	0	$	10,000

Economic development loans		0		0		0		0		2,234		1,290		3,524

Term loans		328		348		370		393		411		2,008		3,858

Capital lease obligations		547		559		572		573		567		4,465		7,283

Total	$	875	$	907	$	10,942	$	966	$	3,212	$	7,763	$	24,665

Less current maturities													$	875

Total long-term debt													$	23,790

The Company’s primary loan agreement is a $35 million secured revolving credit facility which expires on May 29, 2014 with Wells Fargo Bank, N.A. (Wells Fargo). The Company incurs a fee for amounts not used under the revolving credit facility. Fees paid by the Company related to non-usage of its current and former credit facilities have been included in interest expense and were $54,158, $54,002 and $83,424 for fiscal years 2012, 2011 and 2010, respectively. Pursuant to the terms of the Wells Fargo credit facility, at April 30, 2012 and 2011, $7.1 million and $14.4 million, respectively, of the Company’s cash served as security for the Company’s aggregate debt and other obligations to Wells Fargo and was classified as restricted.

An amendment to the revolving credit facility and modifications to related security arrangements completed on May 29, 2012 reduced the amount of cash and securities required to be held in certain of the Company’s accounts with Wells Fargo as security from 100% to 50% of the Company’s outstanding indebtedness and other obligations to Wells Fargo effective as of April 26, 2012. The Company’s outstanding indebtedness and other obligations to Wells Fargo are now also secured by substantially all of the Company’s assets. The Company can borrow up to $35 million under the revolving credit facility; however, the Company’s aggregate indebtedness and other obligations to Wells Fargo cannot exceed 200% of the collateral value of the Company’s cash and specified investments held in the accounts pledged to Wells Fargo. As amended, the Wells Fargo line of credit bears interest at the London Interbank Offered Rate (LIBOR) (0.25% at April 30, 2012) plus 2.625%. Under the terms of the amended revolving credit facility effective May 29, 2012, the Company must: (1) maintain at the end of each fiscal quarter a ratio of total liabilities to tangible net worth not greater than 1.4 to 1.0; (2) maintain at the end of each fiscal quarter a ratio of cash flow to fixed charges of not less than 1.25 to 1.0 measured on a rolling four quarters; (3) maintain at the end of each calendar month an asset coverage ratio of not less than 1.47 to 1.0; and (4) comply with other customary affirmative and negative covenants.

The Company was in compliance with all covenants specified in the amended revolving credit facility as of April 30, 2012, as follows: (1) the Company’s ratio of total liabilities to tangible net worth at April 30, 2012 was 1.0 to 1.0; (2) cash flow to fixed charges for its most recent four quarters was 1.35 to 1.0; and (3) its asset coverage ratio as of April 30, 2012 was 4.89 to 1.0.

The credit facility does not limit the Company’s ability to use unrestricted cash to pay dividends or repurchase its common stock as long as the Company is in compliance with these covenants.

In 2009, the Company entered into a loan agreement with the Board of County Commissioners of Garrett County as part of the Company’s capital investment in land located in Garrett County, Maryland. This loan agreement is secured by a Deed of Trust on the property and bears interest at a fixed rate of 3%. The agreement defers principal and interest during the term of the obligation and forgives any outstanding balance at December 31, 2019, if the Company complies with certain employment levels. The outstanding balance as of April 30, 2012 and 2011 was $1,290,000.

In 2005, the Company entered into two separate loan agreements that were amended in 2008 with the Maryland Economic Development Corporation and the County Commissioners of Allegany County as part of the Company’s capital investment and operations at the Allegany County, Maryland site. The aggregate balance of these loan agreements was $2,234,000 for both fiscal years ended April 30, 2012 and 2011, and expire at December 31, 2016, bearing interest at a fixed rate of 3% per annum. These loan agreements are secured by mortgages on the manufacturing facility constructed in Allegany County, Maryland. These loan agreements defer principal and interest during the term of the obligation and forgive any outstanding balance at December 31, 2016, if the Company complies with certain employment levels at the facility.

In 2002, the Company entered into a loan agreement with the Perry, Harlan, Leslie, Breathitt Regional Industrial Authority (a.k.a. Coalfields Regional Industrial Authority, Inc.) as part of the Company’s capital investment and operations at the Hazard, Kentucky site. This debt facility is a $6 million term loan, which expires November 13, 2017, bearing interest at a fixed rate of 2% per annum. It is secured by a mortgage on the manufacturing facility constructed in Hazard, Kentucky. The loan requires annual debt service payments consisting of principal and interest with a fixed balloon payment of $1.6 million at loan expiration. The outstanding amounts owed as of April 30, 2012 and 2011 were $3,858,000 and $4,165,000, respectively.

During 2012, the Company entered into two capitalized lease agreements in the aggregate amount of $103,000 with First American Financial Bancorp related to financing computer equipment. Each lease has a term of 48 months and a fixed interest rate of 6.5%. The leases require quarterly rental payments. The aggregate outstanding amount for both leases as of April 30, 2012 was $95,000.

In 2004, the Company entered into a lease agreement with the West Virginia Economic Development Authority as part of the Company’s capital investment and operations at the South Branch plant located in Hardy County, West Virginia. This capital lease agreement is a $10 million term obligation, which expires June 30, 2024, bearing interest at a fixed rate of 2% per annum. The lease requires monthly rental payments. The outstanding amounts owed as of April 30, 2012 and 2011 were $7,188,000 and $7,700,000, respectively.

Certain of the Company's loan agreements limit the amount and type of indebtedness the Company can incur and require the Company to maintain specified financial ratios measured on a quarterly basis. In addition to the assets previously discussed, certain of the Company’s property, plant and equipment are pledged as collateral under term loan agreements and capital lease arrangements. The Company was in compliance with all covenants contained in its loan agreements and capital leases at April 30, 2012.

Interest paid under the Company’s loan agreements and capital leases during fiscal years 2012, 2011 and 2010 was $453,000, $467,000 and $567,000, respectively.