NOTE - LINE OF CREDIT AND LONG-TERM DEBT

 

Line of Credit

 

At the Company had a million working capital line of credit from Wells Fargo Bank, N.A., collateralized by substantially all of the Company’s assets with the exception of the Company’s retail store assets. Draws be made under the line at of eligible accounts receivable plus of eligible inventories. Interest on borrowings is at LIBOR plus ( at ). At million was available for borrowings under the line of credit, subject to borrowing base limitations. Additionally, the line of credit is subject to various financial ratio and leverage covenants. The credit line is subject to renewal in and the Company believes it is likely to be renewed on terms similar to current terms. At or and there was amount outstanding under this line of credit. Note contains information regarding the Company’s line of credit use subsequent to

 

Effective the Company entered into a business loan agreement with Wells Fargo Bank, N.A. (the “Wells Fargo Loan Agreement”) for a million long-term line of credit to be used to loan money to SWRL to fund the purchase price of business acquisitions by SWRL (the “Wells Fargo Loan”). The Company made its draw of approximately million on the Wells Fargo Loan on and the draw was the amount outstanding at Interest on the Wells Fargo Loan was at a fixed rate of and the maturity date was As of there was amount outstanding under this loan as all amounts owed were paid off at maturity.

Long-term debt consists of the following at or