Note 7 - Line of Credit |
9 Months Ended |
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Sep. 30, 2026 | |
| Notes to Financial Statements | |
| Debt Disclosure [Text Block] |
7. Line of Credit
The Company maintained a loan and security agreement (the “Loan Agreement”) with HSBC Bank USA, National Association (“HSBC”), as lender, for a revolving line of credit of up to $30.0 million, with an accordion feature that provided up to $20.0 million of additional borrowing capacity available to the Company at its request. Of the $30.0 million line of credit, a sublimit of approximately $9.3 million was designated to facilitate the issuance of bank guarantees, including letters of credit. The line bore interest at a rate equal to term plus 3.0% to 3.3% depending on the Consolidated Total Leverage Ratio (as defined in the Loan Agreement). The line carried an unused fee at a rate equal to 0.5%. The line matured on November 3, 2026. The Company was required to maintain a minimum Consolidated Fixed Charge Coverage Ratio (as defined in the Loan Agreement) as well as a maximum Consolidated Total Leverage Ratio. The Company pledged, assigned and granted HSBC a security interest in all shares of its subsidiaries, future proceeds and assets (except for excluded assets, including material intellectual property) as security for the performance of the Loan Agreement obligations.
On November 2, 2026, the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. (“JPM”), as administrative agent and lender, providing for a $100.0 million senior secured revolving line of credit (the “Revolving Facility”), which includes a $20.0 million sublimit for letters of credit. The Revolving Facility will mature on November 2, 2031. Borrowings under the Revolving Facility bear interest at a rate equal to term SOFR plus an applicable margin ranging from 1.25% to 1.75%, based on the Company’s Senior Secured Net Leverage Ratio (as defined in the Credit Agreement). The line carries an unused commitment fee ranging from 0.15% to 0.25%, also based on the Company’s Senior Secured Net Leverage Ratio. The Company is required to maintain a maximum Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) and a minimum Interest Coverage Ratio (as defined in the Credit Agreement). The Company pledged, assigned, and granted JPM a security interest in substantially all of its assets, including the equity of certain of its subsidiaries, as security for its obligations under the Credit Agreement.
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