PARK AEROSPACE CORPPKE

PARK AEROSPACE CORP Debt Disclosure

10-KFiled May 14, 20201 min read
1
0
.
LONG-TERM DEBT
 
On
January 15, 2016,
the Company entered into a
three
-year revolving credit facility agreement (the “Credit Agreement”) with HSBC Bank USA, National Association (“HSBC Bank”). The Credit Agreement provided for loans up to
$75,000
and letters of credit up to
$2,000.
 
On
January 3, 2018,
in connection with the Company’s prepayment of the entire loan balance, the Company terminated the Credit Agreement. The prepayment was made with the Company’s cash and cash equivalents, marketable securities and restricted cash. In connection with the termination of the Credit Agreement, the Company expensed the remaining deferred financing costs of
$144
in the
fourth
quarter of the fiscal year ended
February 28, 2018.
 
Interest expense recorded under the Credit Agreement was approximately
$0,
$0
and
$2,269
during the
2020,
2019
and
2018
fiscal years, respectively, which is included in interest expense on the Consolidated Statements of Operations.

Historical Timeline

Fiscal YearFiled
2020May 14, 2020Showing above
2019May 20, 2019
2018May 11, 2018
2017May 12, 2017
2016May 13, 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.

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