Overstock.com 2004 Annual Report Download - page 82

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the purchase of inventory. The Amended Credit Agreement provides a revolving line of credit to the Company of up to $30,000 and expires December 31,
2005. The Company has an option to renew the Amended Credit Agreement annually. Included in the $30,000 Amended Credit Agreement is a $10,000 sub-
limit for a revolving line of credit which the Company uses to obtain letters of credit to support inventory purchases. At December 31, 2004 the issuing bank
or an affiliate of the bank had letters of credit totaling $8,225 issued on our behalf under this facility. However, the Company has no liability for this amount
except to the extent, if any, that a beneficiary of any of the outstanding letters of credit draws upon a letter of credit.
Interest on borrowings is payable monthly and accrues at either (i) one-half of one percentage point (0.50%) above LIBOR in effect on the first day of an
applicable fixed rate term, or (ii) at a fluctuating rate per annum determined by the bank to be one half a percent (0.50%) above daily LIBOR in effect on each
business day a change in daily LIBOR is announced by the bank. Unpaid principal, together with accrued and unpaid interest is due on the maturity date,
December 31, 2005. Borrowings under the facility are collateralized by the Company's cash and marketable securities deposited at Wells Fargo or its
affiliates, and the Company is required to maintain balances with Wells Fargo or its affiliates of up to $37.0 million in order to have the full amount of the
credit facility available. At December 31, 2004, there was no outstanding balance on this line.
The Amended Credit Agreement requires the Company to comply with certain covenants, including restrictions on mergers, business combinations or
transfer of assets. The Company was in compliance with these covenants at December 31, 2004.
Capital leases
Future minimum lease payments under capital leases are as follows:
Year Ending
December 31,
2005 $ 632
2006 613
2007 168
2008 7
Thereafter —
Total minimum lease payments 1,420
Less: amount representing interest (82)
Present value of capital lease obligations 1,338
Less: current portion (595)
Capital lease obligations, non-current $ 743
10. 3.75% CONVERTIBLE SENIOR NOTES
In November 2004, the Company completed an offering of $120,000 of 3.75% Convertible Senior Notes (the "Senior Notes"). This includes $20,000 of
additional Senior Notes issued to the initial
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