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Financing Agreements
9 Months Ended
Jan. 31, 2012
Financing Agreements [Abstract]  
Debt Disclosure [Text Block]
Financing Agreements
 
The revolving line of credit, with Commerce Bank, N.A. was renewed on September 27, 2011. The line of credit, which is available for working capital purposes, has a capacity of $500,000 with a 12-month term that is renewable annually.  The borrowing base of this facility is limited to 75% of eligible receivables.  The associated interest rate is equal to the greater of the floating Commerce Bank Prime Rate (currently 3.25%) or a floor of 4%.  Monthly repayments of interest only are required with the principal due at maturity.  This facility is cross collateralized and cross defaulted with all other facilities and is secured by a first lien on all business assets of Torotel Products.  As of January 31, 2012, the entire credit line was available.

The guidance line of credit for equipment purchases with Commerce Bank, N.A. was also renewed. The guidance line currently has a capacity of $120,000. The advance rate of this facility is equal to 70% of the price of the equipment purchased. Additional borrowings will have an associated fixed interest rate that is equal to the 5-year treasury swap plus 3.35%. This facility is cross collateralized and cross defaulted with all other facilities and is secured by a first lien on all business assets of Torotel Products.

The carrying amount of Torotel's debt approximates fair value based on the present value of estimated future cash flows using a discount rate commensurate with a borrowing rate available to Torotel.