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Credit Facilities
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9 Months Ended | ||
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Aug. 31, 2012
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| Credit Facilities [Abstract] | |||
| CREDIT FACILITIES |
On November 30, 2011, the Company entered into a 180-day rolling evergreen margin loan facility with Bank of America, N.A. The terms of the agreement provide for a $10,000,000 facility that is secured by certain of the Company’s assets. Outstanding balances generally will accrue interest at a variable rate equal to one-month LIBOR plus 0.75 percent and unused portions of the facility will accrue a fee equal to an annual rate of 0.25 percent. The Company did not have any borrowings outstanding as of November 30, 2011, and the facility was not utilized during the nine month period of December 1, 2011 through August 31, 2012. As of August 31, 2012, the Company had segregated trading securities with an aggregate value of $1,205,140 to serve as collateral for potential borrowings under the loan facility. On October 29, 2011, Mowood entered into a revolving note payable with a financial institution with a maximum borrowing base of $1,250,000. Borrowings on the note are secured by all of Mowood’s assets. Interest accrues at one-month LIBOR, plus a 400 percent margin (4.235 percent on August 31, 2012), is payable monthly, with all outstanding principal and accrued interest payable on October 29, 2012. Mowood had outstanding borrowings of $125,000 at August 31, 2012. The agreement contains various restrictive covenants, with the most significant relating to minimum consolidated fixed charge ratio, the incidence of additional indebtedness, member distributions, and extension of guaranties, future investments in other subsidiaries and change in ownership. As of August 31, 2012, the Company was in compliance with all covenants.
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