Short Term Borrowings and Credit Lines |
3 Months Ended |
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Mar. 31, 2020 | |
| Debt Disclosure [Abstract] | |
| Short-term Debt [Text Block] |
NOTE 4—SHORT-TERM BORROWINGS AND CREDIT LINES
Except as disclosed below, there have been no significant changes to the Company's short-term borrowing and credit lines as described in Note 9 in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.
The Company had an unsecured, committed revolving line of credit agreement, maturing on August 1, 2023 with monthly variable commitments available for funding that averaged $50.0 million over the course of a calendar year. Effective March 27, 2020, the Company entered into a first amendment to its unsecured, committed revolving line of credit agreement to increase the commitment available for funding to $125.0 million through December 31, 2020, removing monthly variability in commitment level. Under the first amendment interest, payable monthly, is based on the Company’s applicable funded debt ratio and could range from USD LIBOR plus 200.0 basis points to USD LIBOR plus 275.0 basis points. The first amendment continues to require the Company to comply with certain financial covenants, including a funded debt ratio and interest coverage ratio. If the Company is in default, it is prohibited from paying dividends or repurchasing common stock. At March 31, 2020 the Company was in compliance with all associated covenants. As of March 31, 2020, the outstanding balance under this line of credit was $125.0 million, which was accruing interest at a rate of 3.06% per annum. As disclosed in Note 15, in April 2020, the Company amended and restated this committed revolving line of credit agreement.
The Company’s Canadian subsidiary has available an unsecured and uncommitted line of credit, which is payable on demand, guaranteed by the Company, and provides for borrowings up to a maximum of CAD$30.0 million (approximately US$21.2 million) at March 31, 2020. The revolving line accrues interest at the Canadian Prime rate for CAD overdraft borrowings or Bankers' Acceptance rate plus 150 basis points for Bankers' Acceptance loans. As of March 31, 2020, the outstanding balance under this line of credit was CAD$28.4 million (approximately US$20.0 million), which was accruing interest at a rate of 2.89% per annum.
The Company’s Japanese subsidiary has two separate unsecured and uncommitted overdraft facilities guaranteed by the Company providing for borrowing up to a maximum of US$7.0 million and ¥300.0 million, respectively (combined approximately US$9.8 million) at March 31, 2020. Borrowings under these overdraft facilities accrue interest at 275.0 basis points and the Tokyo Interbank Offered Rate plus 0.50 basis
points, respectively. As of March 31, 2020, the outstanding balances under these facilities were US$6.5 million and ¥300.0 million (approximately US$2.8 million), respectively, which were accruing interest at a rate of 2.75% per annum and 0.55% per annum, respectively.
The Company’s Korea subsidiary has available an unsecured and uncommitted overdraft facility guaranteed by the Company providing for borrowing up to a maximum of US$20.0 million at March 31, 2020. Borrowings under the overdraft facility accrue interest at the Korea three month CD rate plus 275.0 basis points. As of March 31, 2020, the outstanding balance under this overdraft facility was US$18.8 million, which was accruing interest at a rate of 4.17% per annum.
The Company’s Chinese subsidiary has available an unsecured and uncommitted overdraft and clean advance facility guaranteed by the Company providing for borrowings of advances or overdrafts up to a maximum of US$20.0 million at March 31, 2020. Borrowings under the facility accrue interest on advances of RMB based on the People’s Bank of China (“PBOC”) base rate plus 0.85%, advances of USD based on LIBOR plus 1.8% per annum or overdrafts of RMB based on 110% of the PBOC rate. As of March 31, 2020, the outstanding balance under this facility was RMB9.5 million (approximately US$1.3 million), which was accruing interest based on the PBOC rate plus 0.85% or 5.20% per annum.
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