Note 7 - Indebtedness

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

(7) Indebtedness

On

December

2,

2013,

the Company entered into an unsecured

$40

million revolving credit facility with Bank of America, N.A. The credit facility calls for interest of LIBOR plus a margin that ranges from

1.0%

to

1.5%

or, at the discretion of the Company, the bank’s prime rate less a margin that ranges from

0.25%

to

zero.

In both cases the applicable margin is dependent upon Company performance. Under the credit facility, the Company is subject to a minimum fixed-charge coverage financial covenant as well as a maximum total funded debt to EBITDA financial covenant. The credit facility was amended effective

December

31,

2014,

to modify the definition of “consolidated fixed-charge coverage ratio”. The Company’s

$40

million credit facility matures on

November

30,

2018.

As of

December

31,

2016,

the Company had

no

borrowings outstanding under the credit facility. Included in the credit facility were approximately

$0.4

million in standby letters of credit drawable as a financial guarantee on worker’s compensation insurance policies. As of

December

31,

2016,

the Company was in compliance with all covenants under the credit facility.

On

October

11,

2012,

the Company entered into a loan agreement to finance the purchase of

two

new molded fiber machines. The annual interest rate is fixed at

1.83%.

As of

December

31,

2016,

approximately

$5.0

million had been advanced on the loan and the outstanding balance was approximately

$856,000.

The loan will be repaid over a

five

-year term. The loan is secured by the related molded fiber machines.

Long-term debt consists of the following (in thousands):

	December 31,
	2016			2015
Equipment loans	$	856		$	1,870
Total long-term debt		856			1,870
Current installments		(856	)		(1,011	)
Long-term debt, excluding current installments	$	-		$	859

Aggregate maturities of long-term debt are as follows (in thousands):

Year ending December 31:
2017	$	856
	$	856