Annual report pursuant to section 13 and 15(d)

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

v2.4.0.8
NOTES PAYABLE, LONG-TERM DEBT AND LONG-TERM OBLIGATIONS (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Nov. 30, 2008
Sep. 30, 2007
Notes payable: [Abstract]        
Other $ 12,000 $ 12,000    
Long-term debt [Abstract]        
Total long-term debt 13,239,000 15,739,000    
Less current portion 1,400,000 1,500,000    
Total long-term debt, less current portion 11,839,000 14,239,000    
Principal payments of long-term debt [Abstract]        
2014 1,400,000      
2015 7,889,000      
2016 1,400,000      
2017 1,400,000      
2018 1,150,000      
Domestic Bank [Member] | Revolving Loan [Member]
       
Long-term debt [Abstract]        
Total long-term debt 6,489,000 [1] 7,489,000 [1]    
Total long-term debt, less current portion 6,500,000 7,500,000    
Loan expiration date Jun. 30, 2015      
Original maximum borrowing capacity 12,000,000      
Maximum borrowing capacity 18,000,000      
Credit agreement sub limit available to support hedging program 3,000,000      
Interest rate (in hundredths) 3.25%      
Available remaining borrowing capacity 11,500,000      
Quarterly commitment fee on the unused portion of loan (in hundredths) 0.25%      
Term loan [Member]
       
Long-term debt [Abstract]        
Total long-term debt 6,750,000 [2] 8,150,000 [2]    
Less current portion 1,400,000 1,400,000    
Total long-term debt, less current portion 5,400,000 6,800,000    
Initial face amount of loan       10,000,000
Face amount     14,000,000  
Maturity date Oct. 31, 2018      
Interest rate on loan (in hundredths) 3.25%      
Principal payments 350,000      
Derivative amount of hedged item       10,000,000
Notes Payable [Member]
       
Long-term debt [Abstract]        
Total long-term debt 0 [3] 100,000 [3]    
Less current portion 0 100,000    
Interest rate on loan (in hundredths) 4.00%      
Principal payments 100,000      
Notes issued on acquisition $ 300,000      
[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, 2013, and 2012, there was a long-term amount outstanding of $6.5 million and $7.5 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, 2013 the rate was 3.25%, and approximately $11.5 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. At December 31, 2013, we were in compliance with all covenants of the agreement.
[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, 2013, and 2012, there was a short-term amount of $1.4 million and $1.4 million and a long-term amount of $5.4 million and $6.8 million outstanding, respectively. The interest rate on the loan varies according to several options. At December 31, 2013, the variable interest rate under the loan was 3.25%. However, as discussed in Note 19, effective August 2008 we 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, 2013, and 2012, there was a short-term amount of $0 and $100,000 outstanding, respectively.