Audiovox 2005 Annual Report Download - page 87

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the amount of accounts receivable and finished goods available
for factoring exceeded the amounts outstanding under this
obligation.
(d) EuroTerm Loan Agreement
On September 2, 2003, Audiovox Germany borrowed 12 million
Euros under a new term loan agreement. This agreement was for
a 5 year term loan with a financial institution consisting of
two tranches. Tranche A is for 9 million Euros and Tranche B
is for 3 million Euros. Tranche B has been fully repaid.
Payments under Tranche A are due in monthly installments and
interest accrues at 2.75% over the Euribor rate for. Any
amount repaid may not be reborrowed. The term loan becomes
immediately due and payable if a change of control occurs
without permission of the financial institution. In April
2005, the maturity of the term loan was prolonged to August
30, 2010 with a pre−payment option.
Audiovox Corporation guarantees 3 million Euros of this term
loan. The term loan is secured by the pledge of the stock of
Audiovox German Holdings GmbH and on all brands and trademarks
of the Audiovox German Holdings Group. The term loan requires
the
maintenance of certain yearly financial covenants that are
calculated according to German Accounting Standards for
Audiovox German Holdings. Should any of the financial
covenants not be met, the financial institution may charge a
higher interest rate on any outstanding borrowings. The short
and long term amounts outstanding under this agreement were
$2,497 and $6,880, respectively, at November 30, 2004 and
$1,357 and $5,204, respectively, at November 30, 2005.
(e) Other Debt
This amount consists primarily of a call put option owed to
certain employees of Audiovox Germany in the amount of $829
and $1,153 at November 30, 2004 and 2005, respectively (See
Note 4).
The Company guaranteed the debt of G.L.M. (a former equity
investment) beginning in December 1996, and this guarantee was
not subsequently modified. During the year ended November 30,
2004, the Company received a request for payment in connection
with this guarantee. As a result of the payment request, the
Company paid $291 on behalf of G.L.M. during the year ended
November 30, 2004 and such guarantee is no longer in effect.
The following is a maturity table for debt and bank
obligations outstanding at November 30, 2005:
TOTAL AMOUNTS
COMMITTED
2006 2007 2008 2009 2010
−−−−−−−−−−−−−−− −−−−−−−−−−− −−−−−−−−−− −−−−−−−−− −−−−−−−−−− −−−−−−−−−
−−−−−−−−−−−−−−− −−−−−−−−−−− −−−−−−−−−− −−−−−−−−− −−−−−−−−−− −−−−−−−−−
Bank Obligations $ 4,757 $4,757 $ − $ − $ − $ −
Debt 7,714 1,357 1,387 2,542 1,388 1,040
−−−−−− −−−−− −−−− −−−−− −−−−− − −−−−− − −−−−− −−−−−
Total $ 12,471 $6,114 $1,387 $2,542 $1,388 $1,040
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