Debt Obligations

12 Months Ended

Dec. 31, 2014

NOTE 9: DEBT OBLIGATIONS

Debt obligations consisted of the following as of December 31:


	As of December 31,
($ in thousands)	2014		2013
Short-term debt:
Capital leases and other borrowings, current portion	$	325	$	428
TriState credit line		-		9,698
		325		10,126
Long-term debt:
Capital leases and other borrowings		295		297
Total debt obligations	$	620	$	10,423

On March 11, 2013, the Company entered into a credit agreement with TriState Capital Bank ("TriState") to provide for borrowings up to $17.0 million (the "Credit Agreement"). The TriState borrowings bore interest at a variable rate based on either LIBOR or a Base Rate, as defined in the Credit Agreement, plus an applicable margin of 3.50% or 2.00%, respectively. All borrowings were to become due and payable on June 30, 2014.

Under the terms of the Credit Agreement, the Company was required to comply with certain loan covenants, which included, but were not limited to, the achievement of certain financial ratios and certain financial reporting requirements. The Company was required to maintain a consolidated liquidity ratio, as defined in the Credit Agreement, in excess of 1.0 to 1.0. The Company was required to obtain the consent of TriState prior to agreeing to any amendment to agreements between the Company and the O-P. The Company's obligations under the Credit Agreement were secured by all of the Company's assets and guaranteed by all of the Company's wholly-owned subsidiaries except for the Company's ILEC subsidiary. The ILEC subsidiary entered into a negative pledge agreement with TriState whereby the ILEC subsidiary agreed not to pledge any of its assets as collateral or lien to be placed on any of its assets.

On April 30, 2014, the Company sold its ownership interest in the O-P (see Note 8) and a portion of the proceeds was used to repay all of the outstanding borrowings under the Credit Agreement.

On June 1, 2014, the Company reduced the borrowing capacity under the Credit Agreement from a ceiling of $17.0 million to a ceiling of $5.0 million. On June 30, 2014, the Credit Agreement was amended to extend the expiration of the Credit Agreement from June 30, 2014 to October 8, 2014. The Company's Credit Agreement expired on October 8, 2014. On November 7, 2014, the Company entered into a demand line of credit with TriState (the "Demand Line of Credit") to allow for borrowings up to $5.0 million. The Company borrows or repays its debt as needed based upon its working capital obligations. It is up to the discretion of TriState to approve borrowings within the allowed line of credit limit and TriState may, at any time, demand that the Company make payment on an outstanding balance. The Company was previously required to comply with certain loan covenants and restrictions under its prior Credit Agreement. There are no financial covenants under the Demand Line of Credit. As of December 31, 2014, the Company did not have any outstanding balance under the Demand Line of Credit.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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