DRCO » Topics » Financing Activities

These excerpts taken from the DRCO 10-K filed Mar 16, 2009.
Financing Activities

During the third quarter of 2008, we entered into a new unsecured credit facility and an interest rate swap agreement.  The new facility restructured and increased our credit facility to $65.0 million and provided for a $40.0 million, five-year term loan and a $25.0 million, five-year revolving credit agreement for working capital.  The term loan requires quarterly repayments of $2.0 million and we expect operating cash flows to be sufficient to fund these repayments.  The swap agreement effectively fixes our interest rate on an initial notional amount of $20.0 million of the term loan principal at 5.60% (3.60% swap fixed rate plus 2.00% margin) throughout the term of the facility.  The facility and swap agreements are more fully described in Note 7 and Note 8, respectively, of our “Notes to Consolidated Financial Statements” in Part II, Item 8 on this Form 10-K.

During 2008, net cash provided by financing activities of $30.7 million represented net borrowings under the term loan of $38.0 million and proceeds of $0.9 million from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions, partially offset by net repayments of $7.7 million under our revolver.

The average daily borrowing on our revolver for 2008 was $3.2 million at a weighted average interest rate of 5.41%, compared to an average daily borrowing of $16.7 million at a weighted average interest rate of 7.30% in 2007 and an average daily borrowing of $10.4 million at a weighted average interest rate of 7.81% in 2006 under our then existing revolver during those periods.  Also, during


2008 we had $40.0 million outstanding under our term loan for the last five months of 2008 at a weighted average interest rate of 4.67%, compared to our 2006 average daily outstanding balance under our then existing acquisition term loans was $14.7 million at a weighted average interest rate of 5.13%.

During 2007, net cash used in financing activities of $6.1 million represented net repayments under our credit facility of $7.3 million, partially offset by $1.2 million of proceeds from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions.

During 2006, net cash used in financing activities of $8.4 million represented principal payments under the acquisition term loan of $25.4 million, partially offset by $15.0 million of net borrowings under the revolving credit agreement and $1.9 million of proceeds from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions.  The outstanding balances on our previous credit facility, which consisted of an acquisition term loan balance of $17.2 million and a revolving credit facility balance of $4.5 million, were paid off and re-borrowed under the revolver as part of the credit facility. 

Financing Activities

During the third quarter of 2008, we entered into a new unsecured credit facility and an interest rate swap agreement.  The new facility restructured and increased our credit facility to $65.0 million and provided for a $40.0 million, five-year term loan and a $25.0 million, five-year revolving credit agreement for working capital.  The term loan requires quarterly repayments of $2.0 million and we expect operating cash flows to be sufficient to fund these repayments.  The swap agreement effectively fixes our interest rate on an initial notional amount of $20.0 million of the term loan principal at 5.60% (3.60% swap fixed rate plus 2.00% margin) throughout the term of the facility.  The facility and swap agreements are more fully described in Note 7 and Note 8, respectively, of our “Notes to Consolidated Financial Statements” in Part II, Item 8 on this Form 10-K.

During 2008, net cash provided by financing activities of $30.7 million represented net borrowings under the term loan of $38.0 million and proceeds of $0.9 million from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions, partially offset by net repayments of $7.7 million under our revolver.

The average daily borrowing on our revolver for 2008 was $3.2 million at a weighted average interest rate of 5.41%, compared to an average daily borrowing of $16.7 million at a weighted average interest rate of 7.30% in 2007 and an average daily borrowing of $10.4 million at a weighted average interest rate of 7.81% in 2006 under our then existing revolver during those periods.  Also, during


2008 we had $40.0 million outstanding under our term loan for the last five months of 2008 at a weighted average interest rate of 4.67%, compared to our 2006 average daily outstanding balance under our then existing acquisition term loans was $14.7 million at a weighted average interest rate of 5.13%.

During 2007, net cash used in financing activities of $6.1 million represented net repayments under our credit facility of $7.3 million, partially offset by $1.2 million of proceeds from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions.

During 2006, net cash used in financing activities of $8.4 million represented principal payments under the acquisition term loan of $25.4 million, partially offset by $15.0 million of net borrowings under the revolving credit agreement and $1.9 million of proceeds from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions.  The outstanding balances on our previous credit facility, which consisted of an acquisition term loan balance of $17.2 million and a revolving credit facility balance of $4.5 million, were paid off and re-borrowed under the revolver as part of the credit facility. 

Financing
Activities






During
the third quarter of 2008, we entered into a new unsecured credit facility and
an interest rate swap agreement.  The new facility restructured and
increased our credit facility to $65.0 million and provided for a
$40.0 million, five-year term loan and a $25.0 million, five-year
revolving credit agreement for working capital.  The term loan
requires quarterly repayments of $2.0 million and we expect operating cash flows
to be sufficient to fund these repayments.  The swap agreement
effectively fixes our interest rate on an initial notional amount of $20.0
million of the term loan principal at 5.60% (3.60% swap fixed rate plus 2.00%
margin) throughout the term of the facility.  The facility and swap
agreements are more fully described in Note 7 and Note 8, respectively, of our
“Notes to Consolidated Financial Statements” in Part II, Item 8 on
this Form 10-K.






During
2008, net cash provided by financing activities of $30.7 million represented net
borrowings under the term loan of $38.0 million and proceeds of $0.9 million
from the issuance of common stock through the exercises of stock options and
employee stock purchase plan transactions, partially offset by net repayments of
$7.7 million under our revolver.




The
average daily borrowing on our revolver for 2008 was $3.2 million at a weighted
average interest rate of 5.41%, compared to an average daily borrowing of $16.7
million at a weighted average interest rate of 7.30% in 2007 and an average
daily borrowing of $10.4 million at a weighted average interest rate of 7.81% in
2006 under our then existing revolver during those periods.  Also,
during




2008 we
had $40.0 million outstanding under our term loan for the last five months of
2008 at a weighted average interest rate of 4.67%, compared to our 2006 average
daily outstanding balance under our then existing acquisition term loans was
$14.7 million at a weighted average interest rate of 5.13%.





During
2007, net cash used in financing activities of $6.1 million represented net
repayments under our credit facility of $7.3 million, partially offset by $1.2
million of proceeds from the issuance of common stock through the exercises of
stock options and employee stock purchase plan transactions.






During
2006, net cash used in financing activities of $8.4 million represented
principal payments under the acquisition term loan of $25.4 million, partially
offset by $15.0 million of net borrowings under the revolving credit agreement
and $1.9 million of proceeds from the issuance of common stock through the
exercises of stock options and employee stock purchase plan
transactions.  The outstanding balances on our previous credit
facility, which consisted of an acquisition term loan balance of $17.2 million
and a revolving credit facility balance of $4.5 million, were paid off and
re-borrowed under the revolver as part of the credit
facility. 







Financing
Activities






During
the third quarter of 2008, we entered into a new unsecured credit facility and
an interest rate swap agreement.  The new facility restructured and
increased our credit facility to $65.0 million and provided for a
$40.0 million, five-year term loan and a $25.0 million, five-year
revolving credit agreement for working capital.  The term loan
requires quarterly repayments of $2.0 million and we expect operating cash flows
to be sufficient to fund these repayments.  The swap agreement
effectively fixes our interest rate on an initial notional amount of $20.0
million of the term loan principal at 5.60% (3.60% swap fixed rate plus 2.00%
margin) throughout the term of the facility.  The facility and swap
agreements are more fully described in Note 7 and Note 8, respectively, of our
“Notes to Consolidated Financial Statements” in Part II, Item 8 on
this Form 10-K.






During
2008, net cash provided by financing activities of $30.7 million represented net
borrowings under the term loan of $38.0 million and proceeds of $0.9 million
from the issuance of common stock through the exercises of stock options and
employee stock purchase plan transactions, partially offset by net repayments of
$7.7 million under our revolver.




The
average daily borrowing on our revolver for 2008 was $3.2 million at a weighted
average interest rate of 5.41%, compared to an average daily borrowing of $16.7
million at a weighted average interest rate of 7.30% in 2007 and an average
daily borrowing of $10.4 million at a weighted average interest rate of 7.81% in
2006 under our then existing revolver during those periods.  Also,
during




2008 we
had $40.0 million outstanding under our term loan for the last five months of
2008 at a weighted average interest rate of 4.67%, compared to our 2006 average
daily outstanding balance under our then existing acquisition term loans was
$14.7 million at a weighted average interest rate of 5.13%.





During
2007, net cash used in financing activities of $6.1 million represented net
repayments under our credit facility of $7.3 million, partially offset by $1.2
million of proceeds from the issuance of common stock through the exercises of
stock options and employee stock purchase plan transactions.






During
2006, net cash used in financing activities of $8.4 million represented
principal payments under the acquisition term loan of $25.4 million, partially
offset by $15.0 million of net borrowings under the revolving credit agreement
and $1.9 million of proceeds from the issuance of common stock through the
exercises of stock options and employee stock purchase plan
transactions.  The outstanding balances on our previous credit
facility, which consisted of an acquisition term loan balance of $17.2 million
and a revolving credit facility balance of $4.5 million, were paid off and
re-borrowed under the revolver as part of the credit
facility. 







These excerpts taken from the DRCO 10-K filed Mar 17, 2008.
Financing Activities

During 2007, net cash used in financing activities of $6.1 million represented net repayments under our credit facility of $7.3 million, partially offset by $1.2 million of proceeds from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions.

Our revolving credit facility (the “credit facility”) provides for a $50 million, three-year revolving credit agreement (the “revolver”) for working capital needs, which expires in September 2009.  On an ongoing basis, the credit facility requires us to meet financial covenants, including maintaining a minimum net worth and certain cash flow and debt coverage ratios. The covenants also limit our ability to incur additional debt, pay dividends, purchase capital assets, sell or dispose of assets, make additional acquisitions or investments, or enter into new leases, among other restrictions. In addition, the credit facility provides that the bank group may accelerate payment of all unpaid principal and all accrued and unpaid interest under the credit facility, upon the occurrence and continuance of certain events of default. At December 31, 2007, the Company was in compliance with its debt covenants. Additional information related to the credit facility is referenced in Note 7 of our “Notes to Consolidated Financial Statements” in Part II, Item 8 on this Form 10-K.

The average daily borrowing on our revolver for 2007 was $16.7 million at a weighted average interest rate of 7.30%, compared to an average daily borrowing of $10.4 million at a weighted average interest rate of 7.81% in 2006 and an average daily borrowing of $7.4 million at a weighted average interest rate of 5.91% in 2005 under our then existing revolver during those periods.  Also, during 2006 and 2005, our average daily outstanding balance under our then existing term and acquisition term loans was $14.7 million at a weighted average interest rate of 5.13% and $55.1 million at a weighted average interest rate of 6.14%, respectively.

During 2006, net cash used in financing activities of $8.4 million represented principal payments under the acquisition term loan of $25.4 million, partially offset by $15.0 million of net borrowings under the revolving credit agreement and $1.9 million of proceeds from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions.  The outstanding balances on our previous credit facility, which consisted of an acquisition term loan balance of $17.2 million and a revolving credit facility balance of $4.5 million, were paid off and re-borrowed under the revolver as part of the credit facility.  As of December 31, 2006, we had $15.0 million outstanding under our credit facility which has been classified as long-term as amounts borrowed under the revolver are contractually due on the maturity of the credit facility, however we may repay at any time prior to that date.

During 2005, net cash used in financing activities was $41.0 million, which consisted of $26.7 million of repayments under the acquisition term loan, $10.0 million of repayments under the revolver and $7.8 million of repayments under the term loan, partially offset by $3.4 million of proceeds from the exercise of stock options and employee stock purchase plan transactions.

Financing
Activities






During
2007, net cash used in financing activities of $6.1 million represented net
repayments under our credit facility of $7.3 million, partially offset by $1.2
million of proceeds from the issuance of common stock through the exercises of
stock options and employee stock purchase plan transactions.






Our
revolving credit facility (the “credit facility”) provides for a $50 million,
three-year revolving credit agreement (the “revolver”) for working capital
needs, which expires in September 2009.  On an ongoing basis, the
credit facility requires us to meet financial covenants, including maintaining a
minimum net worth and certain cash flow and debt coverage ratios. The covenants
also limit our ability to incur additional debt, pay dividends, purchase capital
assets, sell or dispose of assets, make additional acquisitions or investments,
or enter into new leases, among other restrictions. In addition, the credit
facility provides that the bank group may accelerate payment of all unpaid
principal and all accrued and unpaid interest under the credit facility, upon
the occurrence and continuance of certain events of default. At
December 31, 2007, the Company was in compliance with its debt
covenants. Additional information related to the credit facility is
referenced in Note 7 of our “Notes to Consolidated Financial Statements” in
Part II, Item 8 on this Form 10-K.






The
average daily borrowing on our revolver for 2007 was $16.7 million at a weighted
average interest rate of 7.30%, compared to an average daily borrowing of $10.4
million at a weighted average interest rate of 7.81% in 2006 and an average
daily borrowing of $7.4 million at a weighted average interest rate of 5.91% in
2005 under our then existing revolver during those periods.  Also,
during 2006 and 2005, our average daily outstanding balance under our then
existing term and acquisition term loans was $14.7 million at a weighted average
interest rate of 5.13% and $55.1 million at a weighted average interest rate of
6.14%, respectively.






During
2006, net cash used in financing activities of $8.4 million represented
principal payments under the acquisition term loan of $25.4 million, partially
offset by $15.0 million of net borrowings under the revolving credit agreement
and $1.9 million of proceeds from the issuance of common stock through the
exercises of stock options and employee stock purchase plan
transactions.  The outstanding balances on our previous credit
facility, which consisted of an acquisition term loan balance of $17.2 million
and a revolving credit facility balance of $4.5 million, were paid off and
re-borrowed under the revolver as part of the credit facility.  As of
December 31, 2006, we had $15.0 million outstanding under our credit facility
which has been classified as long-term as amounts borrowed under the revolver
are contractually due on the maturity of the credit facility, however we may
repay at any time prior to that date.







During
2005, net cash used in financing activities was $41.0 million, which
consisted of $26.7 million of repayments under the acquisition term loan,
$10.0 million of repayments under the revolver and $7.8 million of
repayments under the term loan, partially offset by $3.4 million of
proceeds from the exercise of stock options and employee stock purchase plan
transactions.







This excerpt taken from the DRCO 10-Q filed Nov 7, 2007.
Financing activities

Net cash used in financing activities was $2.2 million and $2.1 million in the first nine months of 2007 and 2006, respectively. The amount of cash used in 2007 represents net repayments under our revolving credit agreement of $3.3 million, partially offset by $1.0 million of proceeds from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions.  The amount of cash used in 2006 represents principal payments under the then existing acquisition loan of $25.4 million, partially offset by $21.7 million of net borrowings under our then existing revolving credit agreement and $1.6 million of proceeds from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions.


The average daily borrowing on our Revolver for the first nine months of 2007 was $19.1 million at a weighted average interest rate of 7.45%, compared to an average daily borrowing of $7.3 million at a weighted average interest rate of 7.86% under our then existing revolver in the first nine months of 2006.  Also, at September 30, 2006 our average daily outstanding balance under our then existing acquisition term loan was $19.7 million at a weighted average interest rate of 6.87%.  At September 30, 2007, the outstanding balance of the Revolver was $11.7 million with a weighted average interest rate of 7.24%.

This excerpt taken from the DRCO 10-K filed Mar 19, 2007.
Financing Activities
 
On September 29, 2006, we entered into a new revolving credit facility (the “2006 facility”) with a bank group to amend and restate the then existing credit facility entered into on September 1, 2004. The 2006 facility provides for a $50 million, three-year revolving credit agreement for working capital needs. On an ongoing basis, the 2006 facility requires us to meet certain financial covenants, including maintaining a minimum net worth and certain cash flow and debt coverage ratios. The covenants also limit our ability to incur additional debt, pay dividends, purchase capital assets, sell or dispose of assets, make additional acquisitions or investments, or enter into new leases, among other restrictions. In addition, the 2006 facility provides that the bank group may accelerate payment of all unpaid principal and all accrued and unpaid interest under the 2006 facility, upon the occurrence and continuance of certain events of default. At December 31, 2006, the Company was in compliance with its debt covenants. Additional information related to the 2006 facility is referenced in Note 9 of our “Notes to Consolidated Financial Statements” in Part II, Item 8 on this Form 10-K.
 
During 2006, net cash used in financing activities of $8.4 million represented principal payments under the acquisition term loan of $25.4 million, partially offset by $15.0 million of net borrowings under the revolving credit agreement and $1.9 million of proceeds from the issuance of common stock through the exercises of stock options and employee stock purchase plan transactions. The outstanding balances on our 2004 facility, which consisted of an acquisition term loan balance of $17.2 million and a revolving credit facility balance of $4.5 million, were paid off and re-borrowed under the revolver as part of the 2006 facility. As of December 31, 2006, we had $15.0 million outstanding under our 2006 facility which has been classified as long-term as amounts borrowed under the revolver are contractually due on the maturity of the 2006 facility, however we may repay at any time prior to that date.
 
During 2005, net cash used in financing activities was $41.0 million, which consisted of $26.7 million of repayments under the acquisition term loan, $10.0 million of repayments under the revolver and $7.8 million of repayments under the term loan, partially offset by $3.4 million of proceeds from the exercise of stock options and employee stock purchase plan transactions.
 
During 2004, net cash provided by financing activities was comprised of $55.0 million from the acquisition term loan, $1.5 million of net borrowings under the revolver and $2.6 million of cash proceeds from the exercise of stock options and employee stock purchase plan transactions. We entered into our then existing financing arrangement, of which $55.0 million was related to the acquisition of Impact Innovations. We repaid $1.6 million of the principal borrowed immediately after the initial consideration paid for Impact Innovations was reduced to $53.4 million. Our proceeds from financing activities were partially offset by $2.9 million of acquisition term loan principal payments, including the $1.6 million of principal repaid immediately as discussed above, $0.8 million for deferred financing costs and $0.5 million of principal payments under the term loan.
 
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