Long-Term Debt (Tables)
|
12 Months Ended |
Sep. 30, 2019 |
|---|
| Schedule of Fixed Coverage Ratio |
The BofA Revolver Loan bears interest at a variable rate based on a base rate plus a margin. The current base rate is the greater of (i) Bank of America prime rate, (ii) the current federal funds rate plus 0.50%, or (iii) 30-day LIBOR plus 1.00% plus the margin, which varies, depending on the fixed coverage ratio table below. Levels I – IV determine the interest rate to be charged Marquis which is based on the fixed charge coverage ratio achieved. The Level IV interest rate is adjusted up or down on a quarterly basis going forward based upon the above fixed coverage ratio achieved by Marquis.
|
Level
|
|
Fixed Charge Coverage Ratio
|
|
Base Rate
Revolver
|
|
|
LIBOR
Revolver
|
|
|
Base Rate
Term
|
|
|
LIBOR
Term Loans
|
|
|
I
|
|
>2.00 to 1.00
|
|
|
0.50
|
%
|
|
|
1.50
|
%
|
|
|
0.75
|
%
|
|
|
1.75
|
%
|
|
II
|
|
<2.00 to 1.00 but >1.50 to 1.00
|
|
|
0.75
|
%
|
|
|
1.75
|
%
|
|
|
1.00
|
%
|
|
|
2.00
|
%
|
|
III
|
|
<1.50 to 1.00 but >1.20 to 1.00
|
|
|
1.00
|
%
|
|
|
2.00
|
%
|
|
|
1.25
|
%
|
|
|
2.25
|
%
|
|
IV
|
|
<1.2x
|
|
|
1.25
|
%
|
|
|
2.25
|
%
|
|
|
1.50
|
%
|
|
|
2.50
|
%
|
|
| Summary of Maximum Senior Leverage Ratio Required to Maintain for Vintage Stock |
Vintage Stock is required to maintain a declining maximum senior leverage ratio on a trailing twelve-month basis as follows:
|
June 30, 2018
|
|
2.85 : 1.00
|
|
September 30, 2018
|
|
2.85 : 1.00
|
|
December 31, 2018
|
|
2.65 : 1.00
|
|
March 31, 2019
|
|
2.60 : 1.00
|
|
June 30, 2019
|
|
2.40 : 1.00
|
|
September 30, 2019
|
|
2.40 : 1.00
|
|
December 31, 2019
|
|
2.40 : 1.00
|
|
March 31, 2020
|
|
2.20 : 1.00
|
|
June 30, 2020
|
|
2.15 : 1.00
|
|
September 30, 2020
|
|
2.05 : 1.00
|
|
December 31, 2020
|
|
1.85 : 1.00
|
|
March 31, 2021
|
|
1.60 : 1.00
|
|
June 30, 2021 and thereafter
|
|
1.55 : 1.00
|
|
| Summary of Minimum Fixed Charge Ratio Required to Maintain for Vintage Stock |
Vintage Stock is required to maintain on a trailing twelve-month basis a minimum fixed charge ratio of no less than the following:
|
June 30, 2018
|
|
1.30 : 1.00
|
|
September 30, 2018
|
|
1.30 : 1.00
|
|
December 31, 2018
|
|
1.30 : 1.00
|
|
March 31, 2019
|
|
1.10 : 1.00
|
|
June 30, 2019
|
|
1.30 : 1.00
|
|
September 30, 2019
|
|
1.30 : 1.00
|
|
December 31, 2019
|
|
1.30 : 1.00
|
|
March 31, 2020 and thereafter
|
|
1.40 : 1.00
|
|
| Schedule of Long-term Debt |
Notes Payable as of September 30, 2019 and 2018 consisted of the following:
|
|
|
September 30,
2019
|
|
|
September 30,
2018
|
|
|
Bank of America Revolver Loan
|
|
$
|
13
|
|
|
$
|
7,600
|
|
|
Texas Capital Bank Revolver Loan
|
|
|
10,590
|
|
|
|
11,892
|
|
|
Crossroads Financial Revolver Loan
|
|
|
1,981
|
|
|
|
—
|
|
|
Note Payable Comvest Term Loan
|
|
|
15,412
|
|
|
|
22,500
|
|
|
Note Payable to the Sellers of Vintage Stock
|
|
|
10,000
|
|
|
|
10,000
|
|
|
Note #1 Payable to Banc of America Leasing & Capital LLC
|
|
|
2,057
|
|
|
|
3,231
|
|
|
Note #2 Payable to Banc of America Leasing & Capital LLC
|
|
|
—
|
|
|
|
1,637
|
|
|
Note #3 Payable to Banc of America Leasing & Capital LLC
|
|
|
2,379
|
|
|
|
2,872
|
|
|
Note #4 Payable to Banc of America Leasing & Capital LLC
|
|
|
731
|
|
|
|
882
|
|
|
Note #5 Payable to Banc of America Leasing & Capital LLC
|
|
|
3,065
|
|
|
|
3,569
|
|
|
Note #6 Payable to Banc of America Leasing & Capital LLC
|
|
|
891
|
|
|
|
—
|
|
|
Note Payable to Store Capital Acquisitions, LLC
|
|
|
9,274
|
|
|
|
9,302
|
|
|
Note payable to individual, interest at 11% per annum, payable on a 90 day
written notice, unsecured
|
|
|
207
|
|
|
|
207
|
|
|
Note payable to individual, interest at 10% per annum, payable on a 90 day
written notice, unsecured
|
|
|
500
|
|
|
|
500
|
|
|
Note payable to individual, interest at 8.5% per annum, payable on a 120 day
written demand notice, unsecured
|
|
|
—
|
|
|
|
225
|
|
|
Total notes payable
|
|
|
57,100
|
|
|
|
74,417
|
|
|
Less unamortized debt issuance costs
|
|
|
(1,384
|
)
|
|
|
(1,654
|
)
|
|
Net amount
|
|
|
55,716
|
|
|
|
72,763
|
|
|
Less current portion
|
|
|
(7,897
|
)
|
|
|
(13,958
|
)
|
|
Long-term portion
|
|
$
|
47,819
|
|
|
$
|
58,805
|
|
|
| Schedule of Future Maturities of Long-term Debt |
Future maturities of long-term debt at September 30, 2019 are as follows excluding related party debt:
|
Years ending September 30,
|
|
|
|
|
|
2020
|
|
$
|
7,897
|
|
|
2021
|
|
|
5,665
|
|
|
2022
|
|
|
4,507
|
|
|
2023
|
|
|
28,584
|
|
|
2024
|
|
|
1,198
|
|
|
Thereafter
|
|
|
9,249
|
|
|
Total
|
|
$
|
57,100
|
|
|
| Bank of America Revolver Loan |
|
| Summary of Bank Revolver |
The following tables summarize the BofA Revolver for the years ended and as of September 30, 2019 and 2018:
|
|
|
During the year ended September 30,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Cumulative borrowing during the period
|
|
$
|
87,771
|
|
|
$
|
94,697
|
|
|
Cumulative repayment during the period
|
|
|
95,358
|
|
|
|
91,947
|
|
|
Maximum borrowed during the period
|
|
|
8,071
|
|
|
|
8,531
|
|
|
Weighted average interest for the period
|
|
|
4.20
|
%
|
|
|
3.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Total availability
|
|
$
|
14,914
|
|
|
$
|
9,692
|
|
|
Total outstanding
|
|
|
13
|
|
|
|
4,852
|
|
|
| Texas Capital Bank Revolver Loan |
|
| Summary of Bank Revolver |
The TCB Revolver provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, failure to comply with covenants, change in control of Vintage Stock, a material representation or warranty made by us or the borrowers proving to be false in any material respect, certain bankruptcy, insolvency or receivership events affecting Vintage Stock, defaults relating to certain other indebtedness, imposition of certain judgments and mergers or the liquidation of Vintage Stock. The following tables summarize the TCB Revolver for the years ended and as of September 30, 2019 and September 30, 2018:
|
|
|
During the year ended September 30,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Cumulative borrowing during the period
|
|
$
|
74,356
|
|
|
$
|
76,191
|
|
|
Cumulative repayment during the period
|
|
|
75,648
|
|
|
|
76,819
|
|
|
Maximum borrowed during the period
|
|
|
11,932
|
|
|
|
16,078
|
|
|
Weighted average interest for the period
|
|
|
4.55
|
%
|
|
|
4.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Total availability
|
|
$
|
1,410
|
|
|
$
|
108
|
|
|
Total outstanding
|
|
|
10,590
|
|
|
|
11,892
|
|
|