Short-term and Long-term Debt Obligations | Short-term and Long-term Debt Obligations Short-term and long-term obligations as of March 31, 2017 and June 30, 2016 consisted of the following (in thousands): March 31, June 30, 2017 2016 Line of credit: Bank of America $ 63,199 $ 62,199 CTBC Bank 20,300 10,100 Total line of credit 83,499 72,299 Term loans: Bank of America 42,500 933 CTBC Bank 19,838 20,357 Total term loans 62,338 21,290 Total debt 145,837 93,589 Less: debt issuance costs (326 ) — Total debt, net of debt issuance costs 145,511 93,589 Current portion, net of debt issuance costs (113,260 ) (53,589 ) Long-term portion, net of debt issuance costs $ 32,251 $ 40,000 Activities under Revolving Lines of Credit and Term Loans Bank of America In June 2015, the Company entered into an amendment to the existing credit agreement with Bank of America N.A. ("Bank of America") which provided for (i) a $65,000,000 revolving line of credit facility that would have matured on November 15, 2015 and (ii) a five -year $14,000,000 term loan facility. The term loan is secured by three buildings located in San Jose, California and the principal and interest were payable monthly through September 30, 2016 with an interest rate at the LIBOR rate plus 1.50% per annum. The Company extended the revolving line of credit to mature on June 30, 2016. In June 2016, the Company entered into a new credit agreement with Bank of America, which provided for (i) a $55,000,000 revolving line of credit facility including a $5,000,000 letter of credit sublimit that matures on June 30, 2017 and (ii) a five -year $50,000,000 term loan facility. This revolving line of credit facility replaced the existing revolving line of credit facility with Bank of America. This additional term loan is secured by seven buildings located in San Jose, California and the property, plant and equipment and the inventory in those buildings. The principal and interest of the term loan are payable monthly through June 30, 2021 with an interest rate at the LIBOR rate plus 1.25% per annum. The interest rate for the revolving line of credit under the above credit agreements with Bank of America is at the LIBOR rate plus 1.25% per annum. The LIBOR rate was 0.78% at March 31, 2017 . The letter of credit is charged at 1.25% per annum. In June 2016, the Company also entered into a separate credit agreement with Bank of America, which provided for a revolving line of credit of $10,000,000 for the Taiwan and the Netherlands subsidiaries that matures on June 30, 2017. The interest rate of the revolving line of credit is equal to a minimum of 0.9% per annum plus the lender's cost of funds. In December 2016, the Company entered into an amendment to the credit agreement with Bank of America to reduce the $55,000,000 revolving line of credit facility to $45,000,000 and increase the revolving line of credit for the Taiwan and the Netherlands subsidiaries from $10,000,000 to $20,000,000 . As of March 31, 2017 and June 30, 2016 , the total outstanding borrowings under the Bank of America term loan was $42,500,000 and $933,000 , respectively. The total outstanding borrowings under the Bank of America lines of credit was $63,199,000 and $62,199,000 as of March 31, 2017 and June 30, 2016 , respectively. The interest rates for these loans ranged from 1.37% to 2.16% per annum at March 31, 2017 and from 1.02% to 1.96% per annum at June 30, 2016 . As of March 31, 2017 , the amount of the unused revolving lines of credit with Bank of America under the credit agreements was $1,801,000 . In May 2017, The Company entered into a second amendment to the credit agreement with Bank of America to increase the revolving line of credit facility for the Company from $45,000,000 to $85,000,000 and extended the maturity date of the revolving lines of credit facility of the Company and the Netherlands subsidiary to October 31, 2018. In May 2017, the Company drew $20,000,000 from Bank of America revolving line of credit with interest rate at 2.24% per annum to support the Company's growth. CTBC Bank In April 2016, the Company entered into a credit agreement with CTBC Bank Co., Ltd ("CTBC Bank") that provides for (i) a 12 -month NTD $700,000,000 or $21,620,000 U.S. dollar equivalent term loan facility secured by the land and building located in Bade, Taiwan with an interest rate equal to the lender's established NTD interest rate plus 0.25% per annum which is adjusted monthly. This term loan facility also includes a 12 -month customs bond up to NTD $100,000,000 or $3,089,000 U.S. dollar equivalent with an annual fee equal to 0.5% per annum, and (ii) a 12 -month revolving line of credit up to 80.00% of eligible accounts receivable in an aggregate amount of up to $40,000,000 with an interest rate equal to the lender's established USD interest rate plus 0.30% per annum which is adjusted monthly. The total borrowings allowed under the credit agreement are capped at $40,000,000 . The Company has extended the credit agreement to mature on May 31, 2017 and is currently negotiating with CTBC Bank to renew the credit agreement. The total outstanding borrowings under the CTBC Bank term loan was denominated in Taiwanese dollars and was translated into U.S. dollars of $19,838,000 and $20,357,000 at March 31, 2017 and June 30, 2016 , respectively. At March 31, 2017 and June 30, 2016 , the total outstanding borrowings under the CTBC Bank revolving line of credit was $20,300,000 and $10,100,000 , respectively, in U.S. dollars. The interest rate for these loans ranged from 0.94% and 1.83% at March 31, 2017 and 0.90% and 1.25% per annum at June 30, 2016 . At March 31, 2017 , there was no available amount for future borrowing under this credit agreement. Covenant Compliance The credit agreement with Bank of America contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company and its subsidiaries. The credit agreement contains certain financial covenants, including the following: • Not to incur on a consolidated basis, a net loss before taxes and extraordinary items for any two consecutive fiscal quarters; • The Consolidated Leverage Ratio, as defined in the agreement, as of the end of any fiscal quarter, measured for the most recently completed twelve (12) months of the Company, shall not be greater than 2.00; • The domestic unencumbered liquid assets, as defined in the agreement, maintained in accounts within the United States shall have an aggregate market value of not less than $40,000,000 , measured quarterly as of the last day of each fiscal quarter. As of March 31, 2017 and June 30, 2016 , total assets of $1,049,629,000 and $934,625,000 , respectively, collateralized the line of credit with Bank of America under the credit agreement, which represent the total assets of the United States headquarter company, except for seven buildings located in San Jose, California and property, plant and equipment and inventory in those buildings. As of March 31, 2017 and June 30, 2016 , total assets collateralizing the term loan with Bank of America under the credit agreement were $97,625,000 and $59,258,000 , respectively. As of March 31, 2017 , the Company was in compliance with all financial covenants associated with the credit agreements with Bank of America. As of March 31, 2017 and June 30, 2016 , the land and building located in Bade, Taiwan with a value of $26,523,000 and $26,804,000 , respectively, collateralized the term loan with CTBC Bank. There are no financial covenants associated with the term loan with CTBC Bank at March 31, 2017 . |