The Company assigns the majority of its trade accounts receivable to CIT pursuant to factoring agreements, which have expiration dates that are coterminous with that of the financing agreement described below. Under the terms of the factoring agreements, CIT remits customer payments to the Company as such payments are received by CIT. Credit losses are borne by CIT with respect to assigned accounts receivable from approved shipments, while the Company bears the responsibility for adjustments from customers related to returns, allowances, claims and discounts. CIT at any time terminate or limit its approval of shipments to a particular customer. If such a termination or limitation occurs, then the Company either assumes (and seek to mitigate) the credit risk for shipments to the customer after the date of such termination or limitation or discontinues shipments to the customer. Factoring fees, which are included in marketing and administrative expenses in the accompanying unaudited condensed consolidated statements of income, amounted to and for the -month periods ended and respectively, and amounted to and for the -month periods ended and respectively.

The Company’s credit facility at consisted of a revolving line of credit under a financing agreement with CIT of up to million, which includes a million sub-limit for letters of credit, bearing interest at the rate of prime minus or LIBOR plus The financing agreement matures on and is secured by a lien on all assets of the Company. As of the Company had elected to pay interest on balances owed under the revolving line of credit, if any, under the LIBOR option, which was as of The financing agreement also provides for the payment by CIT of interest at the rate of prime as of the beginning of the calendar month minus which was as of on daily negative balances, if any, held at CIT.

 

As of there was balance owed on the revolving line of credit, there was letter of credit outstanding and million was available under the revolving line of credit based on the Company’s eligible accounts receivable and inventory balances. As of there was a balance of million owed on the revolving line of credit, there was letter of credit outstanding and million was available under the revolving line of credit based on the Company’s eligible accounts receivable and inventory balances.

 

The financing agreement contains usual and customary covenants for agreements of that type, including limitations on other indebtedness, liens, transfers of assets, investments and acquisitions, merger or consolidation transactions, transactions with affiliates, and changes in or amendments to the organizational documents for the Company and its subsidiaries. The Company believes it was in compliance with these covenants as of