Annual report pursuant to Section 13 and 15(d)

Long-Term Debt And Line Of Credit

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Long-Term Debt And Line Of Credit
 12 Months Ended
Dec. 28, 2013
Long-Term Debt And Line Of Credit [Abstract]  
Long-Term Debt And Line Of Credit

NOTE – LONG-TERM DEBT AND LINE OF CREDIT

 

The Company has a line of credit with Bank of America. Interest is computed at the bank’s Prime Rate or LIBOR, adjusted by features specified in the Credit Agreement. The collateral for this line of credit is the pledge of the capital stock of certain subsidiaries of the Company, set forth in a separate pledge agreement with the bank.  On July 18, 2013, the Company entered into an amended credit agreement, which increased the amount that it may borrow under the credit facility to $75,000.  The only other modification to the original credit agreement was that any new or existing bank guarantees are considered a reduction of the overall availability of credit and part of the covenant calculation.  This resulted in a $3,800 reduction in the available borrowing limit as of December 28, 2013 due to existing normal course of business guarantees in certain markets. The Credit Agreement contains restrictive covenants based on adjusted EBITDA and a debt coverage ratio.

 

There was no outstanding debt on this line of credit at December 29, 2012 or at December 28, 2013.  The Company will be required to pay any balance on this line of credit in full at the time of maturity in April 2016 unless the line of credit is replaced or terms are renegotiated.