Revolving Credit Facility

9 Months Ended

Oct. 31, 2011

Revolving Credit Facility [Abstract]

Revolving Credit Facility [Text Block]

6.  Revolving Credit Facility

At October 31, 2011, the balance outstanding under our revolving credit facility amounted to $12.7 million. In January 2010, the Company entered into a new one-year $23.5 million revolving credit facility with TD Bank, N.A. In January 2011, TD Bank, N.A. agreed to a two-year extension to expire January 2013. In June 2011, TD Bank, N.A. agreed to extend the term to June 2014 and add a $6.5 term loan facility to be used to fund capital expansion in Brazil, Mexico and Argentina, as well as the ability to refinance existing debt in Canada. Borrowings under this $6.5 million term loan facility are in the form of a five-year term loan.

As of October 31, 2011, there was $3.7 million outstanding under this term loan facility, which is being used to fund capital projects in Brazil and Mexico. The credit facility contains financial covenants including, but not limited to, fixed charge ratio, funded debt to EBIDTA ratio, inventory and accounts receivable collateral coverage ratio, with respect to which the Company was in compliance at October 31, 2011. The current interest rate on this term loan at October 31, 2011, was 2.47%, and principal was due $63,333 monthly.