Term Notes Payable And Line Of Credit

9 Months Ended

May 31, 2020

Term Notes Payable And Line Of Credit [Abstract]

Term Notes Payable And Line Of Credit

NOTE 3 – TERM NOTES PAYABLE AND LINE OF CREDIT

Pursuant to the credit agreement we obtained in August 2019 (the 2019 Credit Agreement), we have the ability to borrow up to $25.0 million in term loans.  At August 31, 2019, we had borrowed $20.0 million of the available term loan amount.  During November 2019, we borrowed the remaining $5.0 million term loan available.  The additional $5.0 million term loan has the same terms and conditions as the previous term loan and does not change the amount of our quarterly principal payments.  However, the maturity date of the term loans is extended for one year to August 2024 as a result of the additional payments.  At May 31, 2020, our future principal payments on the term loans are as follows (in thousands):

YEAR ENDING AUGUST 31,		Amount
2020	$	1,250
2021		5,000
2022		5,000
2023		5,000
2024		5,000
	$	21,250

During the quarter ended May 31, 2020, we withdrew $14.9 million (the available credit) on our revolving credit facility primarily to maximize our flexibility during this period of economic uncertainty.  The line of credit is due and payable in August 2024.