Annual report pursuant to Section 13 and 15(d)

Long-Term Debt (Tables)

v3.22.2.2
Long-Term Debt (Tables)
 12 Months Ended
Sep. 30, 2022
Schedule of Long-term Debt

Notes Payable as of September 30, 2022 and 2021 consisted of the following (in $000’s):

 

 

 

September 30,
2022

 

 

September 30,
2021

 

Bank of America Revolver Loan, variable interest rate, matures January 2025

 

$

10,143

 

 

$

—

 

Encina Business Credit Revolver Loan, LIBOR + 4.5%-5.5%, matures July 2023

 

 

—

 

 

 

12,735

 

Texas Capital Bank Revolver Loan, variable interest rate, matures November 2023

 

 

9,391

 

 

 

8,794

 

Fifth-Third Bank Revolver, variable interest rate, matures January 2027

 

 

23,573

 

 

 

—

 

Fifth-Third Bank Term Loan, variable interest rate, matures January 2027

 

 

3,167

 

 

 

—

 

Fifth-Third Bank Term Loan, variable interest rate, matures January 2027

 

 

3,857

 

 

 

—

 

Fifth-Third Bank Special Advance Term Loan, SOFR + 375 basis points, matures June 2025

 

 

917

 

 

 

—

 

Encina Business Credit Term Loan, LIBOR + 6.5%, matures July 2023

 

 

—

 

 

 

1,319

 

Note Payable to the Sellers of Kinetic, 7.0% interest rate, matures September 2027

 

 

3,000

 

 

 

—

 

Note Payable to the Sellers of Vintage Stock, 8% interest rate, matures September 2023

 

 

—

 

 

 

4,200

 

Note #3 Payable to Banc of America Leasing & Capital LLC, 4.8% interest rate, matures December 2023

 

 

751

 

 

 

1,320

 

Note #4 Payable to Banc of America Leasing & Capital LLC, 4.9% interest rate, matures December 2023

 

 

231

 

 

 

406

 

Note #5 Payable to Banc of America Leasing & Capital LLC, 4.7% interest rate, matures December 2024

 

 

1,406

 

 

 

1,985

 

Note #6 Payable to Banc of America Leasing & Capital LLC, 4.7% interest rate, matures July 2024

 

 

471

 

 

 

618

 

Note #7 Payable to Banc of America Leasing & Capital LLC, 3.2% interest rate, matures February 2027

 

 

3,542

 

 

 

4,121

 

Note #8 Payable to Banc of America Leasing & Capital LLC, 4.0% interest rate, matures September 2027

 

 

2,500

 

 

 

2,943

 

Note #9 Payable to Banc of America Leasing & Capital LLC, 3.75% interest rate, matures December 2026

 

 

4,815

 

 

 

—

 

Note Payable to Extruded Fibers, 6.78% interest rate, matures March 2023

 

 

—

 

 

 

700

 

Note payable to the Sellers of Precision Marshall, no state or implied interest rate, buyer holdback

 

 

2,500

 

 

 

2,500

 

Note Payable to Store Capital Acquisitions, LLC, 9.3% interest rate, matures June 2056

 

 

9,171

 

 

 

9,209

 

Note payable to individual, 11.0% interest rate, payable on 90-day
   written notice

 

 

207

 

 

 

207

 

Note payable to individual, 10.0% interest rate, payable on 90-day
   written notice

 

 

500

 

 

 

500

 

Note payable to individual, noninterest bearing, monthly payments of $19 through March 2023

 

 

139

 

 

 

472

 

Note payable to individual, 7.0% interest rate, five-year notes, unsecured

 

 

198

 

 

 

198

 

Note payable RSSI/(VSSS), no stated or implied interest rate, matures March 2023

 

 

130

 

 

 

130

 

Notes payable JCM Holdings, 6.0% interest rate, matures January 2030

 

 

1,656

 

 

 

1,833

 

Total notes payable

 

 

82,265

 

 

 

54,190

 

Less unamortized debt issuance costs

 

 

(626

)

 

 

(576

)

Net amount

 

 

81,639

 

 

 

53,614

 

Less current portion

 

 

(18,935

)

 

 

(16,055

)

Long-term portion

 

$

62,704

 

 

$

37,559

 
Schedule of Future Maturities of Long-term Debt

Future maturities of long-term debt at September 30, 2022 are as follows excluding related party debt (in $000’s):

 

Years ending September 30,

 

 

 

2023

 

$

18,935

 

2024

 

 

14,130

 

2025

 

 

3,945

 

2026

 

 

3,584

 

2027

 

 

32,025

 

Thereafter

 

 

9,646

 

Total

 

$

82,265

 
Schedule of Fixed Coverage Ratio The BofA Revolver bears interest at a variable rate based on a base rate plus a margin. The current base rate is the greatest of (i) Bank of America prime rate, (ii) the current federal funds rate plus 0.50%, or (iii) 30-day Term SOFR plus 0.11448% credit spread adjustment plus the margin, which varies, depending on the fixed coverage ratio table below (Effective December 31, 2021, SOFR replaced the USD LIBOR for most financial benchmarking). Levels I – V determine the interest rate to be charged Marquis and is based on the fixed charge coverage ratio achieved. The Level V 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

 

Term SOFR Revolver Loan

 

 

Base Rate
Revolver Loan

 

I

 

<1.20 to 1.00

 

 

2.25

%

 

 

1.25

%

II

 

>1.20 to 1.00 but <1.50 to 1.00

 

 

2.00

%

 

 

1.00

%

III

 

>1.50 to 1.00 but <1.75 to 1.00

 

 

1.75

%

 

 

0.75

%

IV

 

>1.75 to 1.00 but <2.00 to 1.00

 

 

1.50

%

 

 

0.50

%

V

 

>2.00 to 1.00

 

 

1.25

%

 

 

0.25

%
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, 2022 and 2021, respectively (in $000’s):

 

 

 

During the year ended September 30,

 

 

 

2022

 

 

2021

 

Cumulative borrowing during the period

 

$

148,015

 

 

$

135,035

 

Cumulative repayment during the period

 

 

136,928

 

 

 

134,843

 

Maximum borrowed during the period

 

 

11,210

 

 

 

—

 

Weighted average interest for the period

 

 

3.68

%

 

 

0.00

%

 

 

 

 

 

 

 

 

 

As of September 30,

 

 

 

2022

 

 

2021

 

Total availability

 

$

13,804

 

 

$

23,321

 

Total outstanding

 

 

10,143

 

 

 

—

 
Encina Revolver Loans  
Summary of Bank Revolver

The following tables summarize the Encina Revolver Loans as of and for the years ended September 30, 2022 and 2021 (in $000’s):

 

 

 

During the year ended September 30,

 

 

 

2022

 

 

2021

 

Cumulative borrowing during the period

 

$

18,812

 

 

$

47,008

 

Cumulative repayment during the period

 

 

31,547

 

 

 

49,159

 

Maximum borrowed during the period

 

 

2,000

 

 

 

1,400

 

Weighted average interest for the period

 

 

6.50

%

 

 

6.50

%

 

 

 

 

 

 

 

 

 

As of September 30,

 

 

 

2022

 

 

2021

 

Total availability

 

$

—

 

 

$

3,590

 

Total outstanding

 

 

—

 

 

 

12,735

 
Loan with Fifth Third Bank  
Summary of Bank Revolver

The following tables summarize the Fifth Third Bank Revolver Loan as of and for the years ended September 30, 2022 and 2021 (in $000’s):

 

 

 

During the year ended September 30,

 

 

 

2022

 

 

2021

 

Cumulative borrowing during the period

 

$

61,745

 

 

$

—

 

Cumulative repayment during the period

 

 

38,172

 

 

 

—

 

Maximum borrowed during the period

 

 

12,937

 

 

 

—

 

Weighted average interest for the period

 

 

4.64

%

 

 

0.00

%

 

 

 

 

 

 

 

 

 

As of September 30,

 

 

 

2022

 

 

2021

 

Total availability

 

$

4,900

 

 

$

—

 

Total outstanding

 

 

23,573

 

 

 

—

 
Texas Capital Bank Revolver Loan  
Summary of Bank Revolver

The following tables summarize the TCB Revolver as of and for the years ended September 30, 2022 and 2021 (in $000's):

 

 

 

During the year ended September 30,

 

 

 

2022

 

 

2021

 

Cumulative borrowing during the period

 

$

86,390

 

 

$

90,650

 

Cumulative repayment during the period

 

 

85,794

 

 

 

88,971

 

Maximum borrowed during the period

 

 

2,425

 

 

 

8,930

 

Weighted average interest for the period

 

 

3.26

%

 

 

2.43

%

 

 

 

 

 

 

 

 

 

As of September 30,

 

 

 

2022

 

 

2021

 

Total availability

 

$

1,707

 

 

$

3,206

 

Total outstanding

 

 

9,391

 

 

 

8,794