On
November 27,2007, the Company entered into the Fourth Amendment
to Revolving Credit and Term Loan Agreement with its primary financial
lender,
Bank of Oklahoma, N.A. The Fourth Amendment renews the $7,000,000
Revolving Line of Credit and extends the maturity date to November
30,
2010. The Fourth Amendment also extends the maturity of and
increases the $8,000,000 Term Loan Commitment to $16,300,000.
The
$7,000,000 Revolving Line of Credit will continue to be used to finance
the
Company’s working capital requirements. The lesser of $7,000,000 or
the total of 80% of the Company’s qualified accounts receivable, and 50% of the
Company’s qualified inventory, less the outstanding balances under of the term
loans identified in the agreement, is available to the Company under
the
revolving credit facility. The entire outstanding balance on the
revolving credit facility is due on maturity.
The
outstanding balance of the $8,000,000 Term Loan prior to being amended
was
$4,300,000. The $12,000,000 of additional funds available under the
amended $16,300,000 Term Loan were fully advanced at closing and the
proceeds
were used to redeem all of the issued and outstanding shares of the
Company’s
Series B 7% Cumulative Preferred Stock. These shares of
preferred stock were beneficially held by David A. Chymiak, Chairman
of the
Board of the Company, and Kenneth A. Chymiak, President and Chief Executive
Officer of the Company, and his spouse. The $16,300,000 Term
Loan will mature over five years and requires quarterly principal payments
of $407,500, plus accrued interest, beginning January 2008.
The
Revolving Line of Credit and Term Loan Agreement also includes a Term
Loan
Commitment of $2,760,000. This loan was secured to finance the
purchase of the Company’s headquarters facility located in Broken Arrow, OK on
November 20, 2006. The $2,760,000 Term Loan matures over 15 years and
payments
are due monthly at $15,334 plus accrued interest.
Interest
rates on the $7,000,000 Revolving Line of Credit, the $16,300,000 Term Loan
and the $2,760,000 Term Loan were also amended to accrue at a calculated
rate
of 1.4% plus LIBOR.