LSI INDUSTRIES INC Debt Disclosure
NOTE 9 — REVOLVING LINE OF CREDIT AND LONG-TERM DEBT
The Company’s long-term debt as of June 30, 2025, and June 30, 2024, consisted of the following:
|
June 30, |
June 30, |
|||||||
|
(In thousands) |
2025 |
2024 |
||||||
|
Secured line of credit |
$ | 36,956 | $ | 38,766 | ||||
|
Term loan, net of debt issuance costs of $8 and $14, respectively |
11,601 | 15,463 | ||||||
|
Total debt |
48,557 | 54,229 | ||||||
|
Less: amounts due within one year |
3,571 | 3,571 | ||||||
|
Total amounts due after one year, net |
$ | 44,986 | $ | 50,658 | ||||
In September 2021, the Company amended its existing $100 million secured line of credit, to a $25 million term loan and $75 million remaining as a secured revolving line of credit. Both facilities expire in the first quarter of fiscal 2027. The principal of the term loan is repaid annually in the amount of $3.6 million over a -year period with a balloon payment of the remaining balance due last month. Interest on both the revolving line of credit and the term loan is charged based upon an increment over the Secured Overnight Financing Rate (SOFR) or a base rate, at the Company’s option. The base rate is calculated as the highest of (a) the Prime rate, (b) the sum of the Overnight Funding Rate plus 50 basis points and (c) the sum of the Daily SOFR Rate plus 100 basis points. The increment over the SOFR borrowing rate fluctuates between 100 and 225 basis points, and the increment over the Base Rate fluctuates between 0 and 125 basis points, both of which depend upon the ratio of indebtedness to earnings before interest, taxes, depreciation, and amortization (“EBITDA”), as defined in the line of credit agreement. As of June 30, 2025, the Company’s borrowing rate against its revolving line of credit was 5.4%. The increment over the SOFR borrowing rate will be 100 basis points for the first quarter of fiscal 2026. The fee on the unused balance of the $75 million committed line of credit fluctuates between 15 and 25 basis points. Under the terms of this line of credit, the Company is required to comply with financial covenants that limit the ratio of indebtedness to EBITDA and require a minimum fixed charge ratio. As of June 30, 2025, there was $35.7 million available for borrowing under the $75 million line of credit.
The Company is in compliance with all of its loan covenants as of June 30, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 11, 2025 | Showing above |
| 2024 | Sep 11, 2024 | |
| 2023 | Sep 8, 2023 | |
| 2022 | Sep 9, 2022 | |
| 2021 | Sep 10, 2021 | |
| 2020 | Sep 11, 2020 | |
| 2019 | Sep 6, 2019 | |
| 2018 | Sep 11, 2018 | |
| 2017 | Sep 8, 2017 | |
| 2016 | Sep 7, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.