Quarterly report pursuant to Section 13 or 15(d)

Financings

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Financings
3 Months Ended
Mar. 31, 2018
Financings

8. Financings

Revolving Credit Facility

On January 26, 2017, we amended the loan and security agreement with Bank of America to borrow up to $50.0 million on a revolving basis, based upon specified percentages of eligible receivables and inventory, which matures on January 26, 2020 (the “Revolving Credit Facility”). Under the Revolving Credit Facility, the maximum applicable margin for LIBOR rate loans is 2.75%, and the maximum applicable margin for base rate loans is 1.75%. As of March 31, 2018, our Chairman, Chief Executive Officer and President had guaranteed $10.0 million of the borrowings under the Revolving Credit Facility (see Note 13). At March 31, 2018 and December 31, 2017, the balance outstanding on the Revolving Credit Facility was $40.1 million and $38.6 million, respectively. We recorded interest expense of $0.5 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively.

In connection with obtaining the revolving credit facility, we incurred debt issuance costs, which are being amortized through the maturity date. At March 31, 2018 and December 31, 2017, we had $0.5 million and $0.6 million, respectively, of deferred debt issuance costs, which are recorded in “Other assets, net” in the unaudited Condensed Consolidated Balance Sheets. Amortization expense of deferred debt issuance costs was less than $0.1 million for both the three months ended March 31, 2018 and 2017.

 

Notes Payable

Notes payable consisted of the following:

 

     March 31,
2018
     December 31,
2017
 

Value Lighting acquisition note

   $ 2.1      $ 2.1  
  

 

 

    

 

 

 

Total notes payable

   $ 2.1      $ 2.1  

Less: Notes payable—current

     (1.9      (1.8
  

 

 

    

 

 

 

Notes payable—noncurrent

   $ 0.2      $ 0.3  
  

 

 

    

 

 

 

Value Lighting Acquisition Note

In conjunction with the acquisition of Value Lighting, we refinanced $3.7 million of Value Lighting’s trade accounts payable by issuing a note payable to the creditor. The note is payable in monthly installments through October 2019 and a lump sum payment of $1.4 million due on November 22, 2018, which may be settled, at our option, in either cash or an equivalent amount of common shares based upon their then-current market value.