Debt | 3 Months Ended |
Mar. 31, 2015 |
Debt | |
Debt | 5. Debt |
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The following table sets forth our outstanding debt as of the periods presented (in thousands): |
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| | March 31, | | December 31, | | | | | | | | | | | | | | | | |
| | 2015 | | 2014 | | | | | | | | | | | | | | | | |
Revolving credit facility, Prime or LIBOR plus 1.75%, maturing in September 2017 | | $ | 49,240 | | $ | 52,795 | | | | | | | | | | | | | | | | |
Note payable, Prime or LIBOR plus 1.75%, maturing in September 2017 | | 3,100 | | 3,255 | | | | | | | | | | | | | | | | |
Note payable, Prime or LIBOR plus 1.75%, maturing in September 2017 | | 1,498 | | 1,571 | | | | | | | | | | | | | | | | |
Note payable, greater of 2% or LIBOR plus 2.15%, maturing in April 2022 | | 4,930 | | — | | | | | | | | | | | | | | | | |
Note payable, LIBOR plus 2.25%, maturing in January 2022 | | 4,537 | | — | | | | | | | | | | | | | | | | |
Notes payable, 4.12%, 4.33% and 4.60%, maturing in March 2017 | | 4,043 | | 4,524 | | | | | | | | | | | | | | | | |
Note payable, LIBOR plus 2.25%, maturing in April 2022 | | 7,648 | | 7,725 | | | | | | | | | | | | | | | | |
Note payable, Prime plus 0.375% or LIBOR plus 2.375%, maturing in September 2016 | | 8,817 | | 8,917 | | | | | | | | | | | | | | | | |
Note payable, 4.65% maturing in April 2015 | | 82 | | 164 | | | | | | | | | | | | | | | | |
Total | | 83,895 | | 78,951 | | | | | | | | | | | | | | | | |
Less: Total current debt | | 53,331 | | 56,536 | | | | | | | | | | | | | | | | |
Total non-current debt | | $ | 30,564 | | $ | 22,415 | | | | | | | | | | | | | | | | |
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The following table sets forth the maturities of our outstanding debt balance as of March 31, 2015 (in thousands): |
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| | Remainder of | | 2016 | | 2017 | | 2018 | | 2019 | | Thereafter | | Total | |
2015 |
Total long-term debt obligations | | $ | 3,076 | | $ | 12,203 | | $ | 2,170 | | $ | 1,645 | | $ | 7,825 | | $ | 7,736 | | $ | 34,655 | |
Revolving credit facility | | — | | 49,240 | | — | | — | | — | | — | | 49,240 | |
Total | | $ | 3,076 | | $ | 61,443 | | $ | 2,170 | | $ | 1,645 | | $ | 7,825 | | $ | 7,736 | | $ | 83,895 | |
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Line of Credit and Related Notes |
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We maintain an asset-based revolving credit facility that provides for, among other things, (i) a credit limit of $200 million; (ii) LIBOR interest rate options that we can enter into with no limit on the maximum outstanding principal balance which may be subject to a LIBOR interest rate option; and (iii) a maturity date of September 30, 2017. The credit facility, which functions as a working capital line of credit with a borrowing base of inventory and accounts receivable, including certain credit card receivables, and a portion of the value of certain real estate, also includes a monthly unused line fee of 0.25% per year on the amount, if any, by which the Maximum Credit, as defined in the agreement, then in effect, exceeds the average daily principal balance of the outstanding borrowings during the immediately preceding month. |
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The credit facility is collateralized by substantially all of our assets. In addition to the security interest required by the credit facility, certain of our vendors have security interests in some of our assets related to their products. The credit facility has as its single financial covenant a minimum fixed charge coverage ratio (FCCR) requirement in the event an FCCR triggering event has occurred. An FCCR triggering event is comprised of maintaining certain specified daily and average excess availability thresholds. In the event the FCCR covenant applies, the fixed charge coverage ratio is 1.0 to 1.0 calculated on a trailing four-quarter basis as of the end of the last quarter immediately preceding such FCCR triggering event date. At March 31, 2015, we were in compliance with our financial covenant under the credit facility. |
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Loan availability under the line of credit fluctuates daily and is affected by many factors, including eligible assets on-hand, opportunistic purchases of inventory and availability and our utilization of early-pay discounts. At March 31, 2015, we had $61.0 million available to borrow for working capital advances under the line of credit. |
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In connection with, and as part of, our revolving credit facility, we maintain a term note with a principal balance of $4.34 million, payable in equal monthly principal installments of approximately $52,000, amortized over 84 months, beginning on April 1, 2013, plus interest at the prime rate with a LIBOR option. In the event of a default, termination or non-renewal of the revolving credit facility upon the maturity thereof, the term loan is payable in its entirety upon demand by the lenders. |
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In May 2013, we completed the purchase of real property adjacent to the building we own in Santa Monica, California for $3.0 million and financed $1.7 million of the purchase price with a sub-line under our revolving credit facility. The loan bears the same interest terms as our revolving credit facility and interest is payable monthly. The principal amount is amortized monthly over an 84 month period similar to our term note, with monthly principal amortization of approximately $24,000 that began in July 2014. |
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Other Notes Payable |
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In March 2015, we completed the purchase of real property in Irvine, California for approximately $5.8 million and financed $4.9 million with a long-term note. The loan agreement provides for a seven year term and a 25 year straight-line, monthly principal repayment amortization period that begins on May 1, 2015 with a balloon payment at maturity in April 2022. The loan is secured by the real property and contains financial covenants substantially similar to those of our existing asset-based credit facility. |
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In January 2015, we completed the purchase of certain real property in Lewis Center, Ohio for approximately $6.6 million and financed $4.575 million with a long-term note. The $4.575 million term note provides for a seven year term and a 25 year straight-line, monthly principal repayment amortization period that began in February 2015 with a balloon payment at maturity in January 2022. The loan is secured by the real property and contains financial covenants substantially similar to those of our existing asset-based credit facility. |
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Throughout 2014, we entered into three financing arrangements with a bank to finance the costs of equipment, software and professional services related to our ERP upgrade. The total amount financed was $5.6 million, with a quarterly repayment schedule maturing in March 2017. |
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In December 2012, we completed the purchase of 7.9 acres of land for approximately $1.1 million and have incurred additional costs of $12.2 million through December 31, 2014 towards the construction of a new cloud data center that we opened in June 2014. In July 2013, we entered into a loan agreement for up to $7.725 million to finance the build out of the new data center. The loan agreement provides for a five year term and a 25 year straight-line, monthly principal repayment amortization period with a balloon payment at maturity in January 2020. The loan is secured by the real property and contains financial covenants substantially similar to those of our existing asset-based credit facility. |
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In June 2011, we entered into a credit agreement to finance the acquisition and improvement of the real property we purchased in March 2011 in El Segundo, California. The credit agreement provides for a five year term and a 25 year straight-line, monthly principal repayment amortization period with a balloon payment at maturity in September 2016. The loan is secured by the real property and contains financial covenants substantially similar to those of our existing asset-based credit facility. |
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At March 31, 2015, the effective weighted average annual interest rate on our outstanding amounts under the credit facility, term note and variable interest rate notes payable was 2.25%. |
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The carrying amounts of our line of credit borrowings and notes payable approximate their fair value based upon the current rates offered to us for obligations of similar terms and remaining maturities. |
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