DEBT |
6 Months Ended |
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Sep. 30, 2016 | |
| Debt Disclosure [Abstract] | |
| DEBT |
DEBT
Wells Fargo Credit Agreement
On April 15, 2016, our credit agreement with Wells Fargo (as amended, the “WF credit agreement”) was amended to modify the maturity date, increase the excess availability requirement over time and reduce the maximum amount of intellectual property assets that may be included in the borrowing base over time.
Under the WF credit agreement, we had the ability to borrow the lesser of $75 million or the amount of the monthly borrowing base under a senior secured revolving credit facility, which matures August 10, 2017. As of September 30, 2016, we had a $60.3 million outstanding balance on the line of credit at a weighted average interest rate of 3.04%. In addition, we had letters of credit totaling $1.0 million and an excess availability requirement of $8.0 million, reducing the maximum amount available to borrow to $5.7 million as of September 30, 2016. Quarterly, we were required to pay a 0.375% commitment fee on undrawn amounts under the revolving credit facility.
The WF credit agreement contained financial covenants and customary events of default for such securities, including cross-payment default and cross-acceleration to other material indebtedness for borrowed money which require notice from the trustee or holders of at least 25% of the notes and were subject to a cure period upon receipt of such notice. As of September 30, 2016, and during the first six months of fiscal 2017, we were in compliance with all covenants.
On October 21, 2016, our WF credit agreement was refinanced through the use of proceeds obtained from our new credit facility as further discussed within Note 12 “Subsequent Event” of the Notes to the Condensed Consolidated Financial Statements. As such, a $60.3 million outstanding balance under our WF credit agreement was classified as long-term in the Condensed Consolidated Balance Sheets as of September 30, 2016.
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