Annual report pursuant to section 13 and 15(d)

NOTES PAYABLE, LONG-TERM DEBT AND LONG-TERM OBLIGATIONS (Details)

v2.4.0.6
NOTES PAYABLE, LONG-TERM DEBT AND LONG-TERM OBLIGATIONS (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Revolving Note to Domestic Bank [Member]
Dec. 31, 2011
Revolving Note to Domestic Bank [Member]
May 25, 2006
Revolving Note to Domestic Bank [Member]
Dec. 31, 2012
Term Notes to Domestic Bank on September 19, 2007 [Member]
Dec. 31, 2011
Term Notes to Domestic Bank on September 19, 2007 [Member]
Nov. 26, 2008
Term Notes to Domestic Bank on September 19, 2007 [Member]
Sep. 19, 2007
Term Notes to Domestic Bank on September 19, 2007 [Member]
Dec. 31, 2012
Term Note to CEO [Member]
Dec. 31, 2011
Term Note to CEO [Member]
Nov. 30, 2010
Term Note to CEO [Member]
Notes payable: [Abstract]                        
Other $ 12,000 $ 12,000                    
Long-term debt [Abstract]                        
Total long-term debt 15,739,000 24,239,000 7,489,000 [1] 14,489,000 [1]   8,150,000 [2] 9,550,000 [2]     100,000 [3] 200,000 [3]  
Less current portion 1,500,000 [4] 1,500,000 [5]       1,400,000 1,400,000     100,000 100,000  
Total long-term debt, less current portion 14,239,000 [4] 22,739,000 [5] 7,500,000 14,500,000   6,800,000 8,200,000     0 100,000  
Loan expiration date     Jun. 30, 2015                  
Maximum borrowing capacity     18,000,000   12,000,000              
Credit agreement sub limit available to support hedging program     3,000,000                  
Interest rate (in hundredths)     2.25%                  
Available remaining borrowing capacity     9,300,000                  
Quarterly commitment fee on the unused portion of loan (in hundredths)     0.25%                  
Unfinanced capital expenditure     6,000,000 4,000,000                
Face amount of term loan               14,000,000 10,000,000      
Maturity date           Oct. 31, 2018            
Interest rate on loan (in hundredths)           2.25%       4.00%    
Principal payments           350,000       100,000    
Notes payable issued to Nicholas Carter, previous owner of STTC                       300,000
Principal payments of long-term debt [Abstract]                        
2013 1,500,000                      
2014 1,400,000                      
2015 8,889,000                      
2016 1,400,000                      
2017 1,400,000                      
Thereafter $ 1,150,000                      
[1] On May 25, 2006 South Hampton entered into a $12.0 million revolving loan agreement with a domestic bank secured by accounts receivable and inventory. The loan was originally due to expire on October 31, 2008, but has been amended to extend the termination date to June 30, 2015. Additional amendments were entered into during 2008 and 2009 which ultimately increased the availability of the line to $18.0 million based upon the Company’s accounts receivable and inventory. At December 31, 2012, and 2011, there was a long-term amount outstanding of $7.5 million and $14.5 million, respectively. The credit agreement contains a sub-limit of $3.0 million available to be used in support of the hedging program. The interest rate on the loan varies according to several options and the amount outstanding. At December 31, 2012 the rate was 2.25%, and approximately $9.3 million was available to be drawn. A commitment fee of 0.25% is due quarterly on the unused portion of the loan. If the amount outstanding surpasses the amount calculated by the borrowing base, a principal payment would be due to reduce the amount outstanding to the calculated base. Interest is paid monthly. Covenants that must be maintained include EBITDA, capital expenditures, dividends payable to parent, and leverage ratio. On February 10, 2012, South Hampton entered into the Twelfth Amendment to its Credit Agreement with the bank which increased the maximum unfinanced capital expenditures from $4.0 million to $6.0 million in the aggregate commencing with the calendar year ended December 31, 2012. At December 31, 2012, the Company was not in compliance with the capital expenditures covenant of the agreement; however, a waiver was obtained.
[2] On September 19, 2007 South Hampton entered into a $10.0 million term loan agreement with a domestic bank to finance the expansion of the petrochemical facility. An amendment was entered into on November 26, 2008 which increased the term loan to $14.0 million due to the increased cost of the expansion. This note is secured by plant, pipeline and equipment. The agreement expires October 31, 2018. At December 31, 2012, and 2011, there was a short-term amount of $1.4 million and $1.4 million and a long-term amount of $6.8 million and $8.2 million outstanding, respectively. The interest rate on the loan varies according to several options. At December 31, 2012, the variable interest rate under the loan was 2.25%. However, as discussed in Note 20, effective August 2008 the Company entered into a pay-fixed, receive-variable interest rate swap with the lending bank which has the effect of converting the interest rate on $10.0 million of the loan to a fixed rate. Principal payments of $350,000 are paid quarterly with interest being paid monthly.
[3] On November 30, 2010, as part of the consideration paid for the acquisition of STTC, a note payable issued to Nicholas Carter, previous owner of STTC, for $300,000. Principal of $100,000 plus accrued interest at 4.0% per annum is payable annually on November 30th of each year. At December 31, 2012, and 2011, there was a short-term amount of $100,000 and $100,000 and a long-term amount of $0 and $100,000 outstanding, respectively.
[4] Restated - see Note 3
[5] Restated - see Note 2