XML 58 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long-Term Debt
6 Months Ended
Jun. 30, 2014
Debt Disclosure [Abstract]  
Long-Term Debt
Long-Term Debt

On May 10, 2013, the Company issued $50.0 million principal amount of 6.00% Senior Notes due June 2017. The notes bear interest payable semi-annually in arrears on May 15 and November 15. The indenture governing the 6.00% Senior Notes due 2017 contains affirmative and negative covenants that, among other things, limit or restrict the Company's and its subsidiaries' ability to incur additional debt, grant negative pledges to other creditors, prepay subordinated indebtedness and certain other
indebtedness, pay dividends or make other distributions on capital stock, redeem or repurchase preferred and capital stock,
make loans, investments and other restricted payments, engage in acquisitions, enter into transactions with affiliates, sell assets,
create liens on assets to secure debt, or effect a consolidation or merger or to sell all, or substantially all, of the Company's
assets, in each case, subject to certain qualifications and exceptions set forth in the indenture.

As of June 30, 2014 and December 31, 2013, Silver Star Brands had approximately $5.2 million and $5.5 million, respectively, of long-term debt outstanding under a real estate mortgage note payable which matures June 1, 2020.  Under the terms of the note, payments of principal and interest are required monthly at a fixed interest rate of 7.89%.
 
The Company’s debt is recorded at its amortized cost basis which approximates its fair value.

As of June 30, 2014, the Company had a total of $2.4 million available under an uncommitted bank facility to be used for letters of credit. The issuance of letters of credit under this facility will be available until January 31, 2015.  As of June 30, 2014, no amount was outstanding under this facility.

As of June 30, 2014, the Company had $1.1 million in standby letters of credit outstanding that are collateralized with a certificate of deposit and have an expiration date of March 1, 2015.