Fushi Copperweld, Inc. - FORM 10-Q - XML - IDEA: XBRL DOCUMENT - November 9, 2012

Note 8 - Loans and revolving line of credit

Loans consist of the following:

Repayment of principal of long-term loans for each of the five years following September 30, 2012 is as follows:

As of September 30, 2012 and December 31, 2011, the Company had no balance under the revolving credit facility of USD 4.5 million with Regions Bank.

In 2011, Copperweld Bimetallics Europe SPRL and Copperweld Tubing Europe SPRL entered into a credit facility agreement with BNP Paribas Fortis Bank, pursuant to which the bank has provided (i) a credit facility up to €2,000,000 for Copperweld Bimetallics Europe SPRL and (ii) a credit facility up to €8,000,000 for Copperweld Tubing Europe SPRL. The credit facilities expire on October 31, 2012. This type of credit facility is typically offered on an annually renewable basis. Pursuant to the credit facility agreement, there is a commitment fee of 0.2% per quarter on the unused amount of the facility. On October 23, 2012, the Company renewed the credit facilities to extend the maturity date to October 31, 2013. The amount that can be drawn from each credit facility is based on the respective amount of eligible inventories and receivables of Copperweld Bimetallics Europe SPRL and Copperweld Tubing Europe SPRL. The credit facilities are secured by the business of Copperweld Bimetallics Europe SPRL and Copperweld Tubing Europe SPRL and guaranteed by Fushi.

In the first three quarters of 2012, Copperweld Bimetallics Europe SPRL withdrew €1,900,000 ($2,435,800) under credit facility agreement and repaid €1,400,000 ($1,794,800). Also, in the first three quarters of 2012, Copperweld Tubing Europe SPRL withdrew a total of €10,400,000 ($13,332,800) under its credit facility agreement and repaid €8,700,000 ($11,153,400). Both short-term borrowings mature and expire at various times within one year.

As of September 30, 2012, Copperweld Bimetallics Europe SPRL has unused credit facility of €1,500,000 ($1,928,400) and Copperweld Tubing Europe SPRL has unused credit facility of €6,300,000 ($8,099,280).