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Debt
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt |
Note 3 - Debt
Long term debt relates to a $1.7 million note payable re-issued in January 2011. This note will be fully amortized in June 2014, and the outstanding principal consisted of the following for the years ended:
As of June 30, 2012, the minimum future principal maturities of long term debt were as follows:
The variable rate of the note is based upon the Wall Street Journal Prime Rate (the "Index") plus 1.00%, subject to a floor rate of 6.25%. The Index was 3.25% at June 30, 2012, resulting in an interest rate of 6.25% per annum as of June 30, 2012. Under the note payable, NP is required to maintain certain customary financial and restrictive covenants. As of June 30, 2012, NP was in compliance with all financial and restrictive covenants.
In addition, the Company has a $1.0 million working capital line of credit classified as short term debt. The amount due on the line of credit was $0.1 million as of June 30, 2012. The line of credit bears interest at a variable rate, which was 6.25% as of June 30, 2012. The line of credit also secures both a letter of credit in the amount of $25 thousand in favor of the Bureau of Land Management and business credit cards in the amount of $25 thousand. As of June 30, 2012, $0.9 million was available under this line of credit.
The note payable, letters of credit, and business credit cards are collateralized by a first mortgage and an assignment of production for Poplar and are guaranteed by Magellan up to $6.0 million, not to exceed the amount of the principal owed.
The carrying amount of the Company’s long term debt approximates its fair value, due to its variable interest rate, which resets based on the market rates.
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