Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Debt and Other Financing Arrangements

v3.8.0.1
Note 5 - Debt and Other Financing Arrangements
3 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Debt Disclosure [Text Block]
Note
5.
Debt and Other Financing Arrangements:
 
In fiscal
2017,
the Company entered into a revolving line-of-credit facility governed by a Credit Agreement (the Credit Agreement) dated
July 28, 2016.
The Credit Agreement provides for a revolving credit facility of
$400
mi
llion, which can be increased by an additional
$200
million subject to certain conditions. Borrowings under the Credit Agreement
may
be used for working capital and expenditures of the Company and its subsidiaries, including financing permitted acquisitions. Borrowings under the Credit Agreement for base rate loans bear interest at a variable rate equal to the greater of (i) the prime commercial rate, (ii) the per annum federal funds rate plus
0.5%,
or (iii) LIBOR +
1.00%
-
1.75%
depending on the existing total leverage ratio of Debt to Earnings Before Interest, Taxes, Depreciation and Amortization (as defined in the Credit Agreement). The annualized fee for any unused portion of the credit facility is currently
25
basis points.
 
The Credit Agreement matures
on
July 
28,
2021
and contains customary restrictive and financial covenants and customary events of default. As of
September
 
30,
2017,
the outstanding balance under the Credit Agreement was
$337.5
million.