Annual report pursuant to Section 13 and 15(d)

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12 Months Ended
Dec. 31, 2011
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Note 6 Debt

We have an unutilized $12.0 million line of credit with the Frost Group, a related party. In June 2010 we repaid all amounts outstanding on the line of credit including $12.0 million in principal and $4.1 million in interest. The line of credit was renewed in February 2011 with a new maturity date of March 31, 2012. We have the ability to draw funds under the line of credit until its expiration in March 2012. We are obligated to pay interest upon maturity, capitalized quarterly, on any outstanding borrowings under the line of credit at an 11% annual rate. The line of credit is collateralized by all of our U.S. personal property except our intellectual property.

 

We have entered into lines of credit agreements with nine financial institutions in Chile in addition to our line of credit with the Frost Group. The Chilean lines of credit are used primarily as a source of working capital for inventory purchases. The following table summarizes the lines of credit:

 

                             
(in thousands)   Interest rate on
borrowings
  Maximum
borrowings
    Amount outstanding at December 31,  

Lender

      2011     2010  

The Frost Group LLC

  11%   $ 12,000     $ —       $ —    

Itau Bank

  Libor +3.2%     2,351       1,091       1,849  

Bank of Chile

  Libor +3.2%     3,096       1,749       3,100  

BICE Bank

  Libor +3.2%     2,893       952       2,813  

Santander Bank

  Libor +3.2%     1,796       236       1,826  

Corp Banca

  Libor +3.2%     435       420       426  

BBVA Bank

  Libor +3.2%     3,214       2,348       3,123  

BCI

  Libor +3.2%     964       945       —    

Security

  Libor +3.2%     1,010       1,016       —    

Scotiabank

  Libor +3.2%     1,401       —         1,553  
       

 

 

   

 

 

   

 

 

 

Total

      $ 29,160     $ 8,757     $ 14,690  
       

 

 

   

 

 

   

 

 

 

In March 2009, the Gamma Trust, a related party, advanced $3.0 million to us pursuant to a Promissory Note we issued to the Gamma Trust (the “Note”). The entire amount of this advance and all accrued interest thereon was due and payable on the earlier of May 4, 2009, or such earlier date following the closing of the stock purchase transaction with the Gamma Trust. Refer to Note 7. The Note bore interest at a rate equal to 11% per annum and could be prepaid in whole or in part without penalty or premium. We repaid the Note and $48 thousand of interest on April 27, 2009.