Quarterly report pursuant to Section 13 or 15(d)

Long Term Debt

v3.22.0.1
Long Term Debt
 3 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Long Term Debt

Note 8: Long Term Debt

Long-term debt as of December 31, 2021 and September 30, 2021 consisted of the following (in 000's):

 

 

 

December 31, 2021

 

 

September 30, 2021

 

Bank of America Revolver Loan

 

$

1,490

 

 

$

—

 

Encina Business Credit Revolver Loan

 

 

13,938

 

 

 

12,735

 

Texas Capital Bank Revolver Loan

 

 

8,142

 

 

 

8,794

 

Encina Business Credit Term Loan

 

 

1,233

 

 

 

1,319

 

Note Payable to the Sellers of Vintage Stock

 

 

2,000

 

 

 

4,200

 

Note #3 Payable to Banc of America Leasing & Capital LLC

 

 

1,180

 

 

 

1,320

 

Note #4 Payable to Banc of America Leasing & Capital LLC

 

 

363

 

 

 

406

 

Note #5 Payable to Banc of America Leasing & Capital LLC

 

 

1,843

 

 

 

1,985

 

Note #6 Payable to Banc of America Leasing & Capital LLC

 

 

582

 

 

 

618

 

Note #7 Payable to Banc of America Leasing & Capital LLC

 

 

3,978

 

 

 

4,121

 

Note #8 Payable to Banc of America Leasing & Capital LLC

 

 

2,834

 

 

 

2,943

 

Note #9 Payable to Banc of America Leasing & Capital LLC

 

 

5,500

 

 

 

—

 

Note Payable to Extruded Fibers

 

 

400

 

 

 

700

 

Note Payable to the Sellers of Precision Marshall

 

 

2,500

 

 

 

2,500

 

Note Payable to Store Capital Acquisitions, LLC

 

 

9,200

 

 

 

9,209

 

Note payable to individuals, interest at 10-11% 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, noninterest bearing, monthly payments of $19 through March 2023

 

 

391

 

 

 

472

 

Note payable to individuals, interest at 7% per annum, unsecured

 

 

198

 

 

 

198

 

Note payable RSSI/(VSSS)

 

 

130

 

 

 

130

 

Note Payable to JCM Holdings

 

 

1,790

 

 

 

1,833

 

Total notes payable

 

 

58,399

 

 

 

54,190

 

Less unamortized debt issuance costs

 

 

(541

)

 

 

(576

)

Net amount

 

 

57,858

 

 

 

53,614

 

Less current portion

 

 

(17,553

)

 

 

(16,055

)

Total long-term debt

 

$

40,305

 

 

$

37,559

 

 

 

Future maturities of long-term debt at December 31, 2021, are as follows which does not include related party debt separately stated:

 

Twelve months ending December 31,

 

 

 

2022

 

$

17,553

 

2023

 

 

20,827

 

2024

 

 

3,264

 

2025

 

 

2,483

 

2026

 

 

3,087

 

Thereafter

 

 

11,185

 

Total future maturities of long-term debt

 

$

58,399

 

 

Bank of America Revolver Loan

On January 31, 2020, Marquis entered into an amended $25.0 million revolving credit agreement (“BofA Revolver”) with Bank of America Corporation (“BofA”). The BofA Revolver is a five-year, asset-based facility that is secured by substantially all of Marquis’ assets. Availability under the BofA Revolver is subject to a monthly borrowing base calculation. Marquis’ ability to borrow under the BofA Revolver is subject to the satisfaction of certain conditions, including meeting all loan covenants under the credit agreement with BofA. As of December 31, 2021, the outstanding balance was approximately $1.5 million.

Loans with Encina Business Credit, LLC

On July 14, 2020, Precision Marshall entered into a Loan and Security Agreement (the “Loan Agreement”) with Encina Business Credit, LLC, as Agent (the “Agent”). The Loan Agreement provides for secured revolving loans (the “Encina Revolver Loans”) in a principal amount not to exceed the lesser of (i) $23.5 million and (ii) a borrowing base equal to the sum of (a) 85% of Precision's eligible accounts receivable, plus (b) 85% of Precision's eligible inventory, subject to an eligible inventory sublimit that begins at $14.0 million and declines to $12.0 million during the term of the Loan Agreement, minus (c) customary reserves. The Encina Revolver Loans mature on July 14, 2023. As of December 31, 2021 , the balance outstanding was approximately $13.9 million. On January 20, 2022, the Company refinanced these loans, and the balance outstanding was repaid. The refinanced credit facility, totaling $29 million, is comprised of $23.0 million in revolving credit, $3.5 million in machinery and equipment (“M&E”) lending, and $2.5 million for capital expenditure (“Capex”) lending.

Texas Capital Bank Revolver Loan

On November 3, 2016, Vintage Stock entered into an amended $12.0 million credit agreement with Texas Capital Bank (“TCB Revolver”). The TCB Revolver is a five-year, asset-based facility that is secured by substantially all of Vintage Stock’s assets. Availability under the TCB Revolver is subject to a monthly borrowing base calculation. The TCB Revolver matures November 3, 2023. As of December 31, 2021, the balance outstanding was approximately $8.1 million.

Note payable to JCM Holdings

During October 2020, Marquis purchased a manufacturing facility for $2.5 million. Marquis had previously been leasing this facility. Additionally, Marquis entered into a $2.0 million note in favor of the seller of the facility for the balance of the purchase price, which note is secured by the facility. The note bears interest at 6%, and principal and interest payments are due monthly. The note is fully amortized and matures January 2030. As of December 31, 2021, the remaining principal balance was approximately $1.8 million.

Equipment Loans

On June 20, 2016 and August 5, 2016, Marquis entered into a transaction that provided for a master agreement and separate loan schedules (the “Equipment Loans”) with Banc of America Leasing & Capital, LLC that provided for the following during the three months ended December 31, 2021:

Note #9 is for approximately $5.5 million, secured by equipment, is due December 2026, and is payable in 60 monthly payments of $92,000 beginning January 2022, bearing interest at 3.75%.

Loan Covenant Compliance

As of December 31, 2021, the Company was in compliance with all covenants under its existing revolving and other loan agreements.