Debt

6 Months Ended

Jun. 30, 2012

Debt [Abstract]

Debt

7. Debt

Long-Term Debt

ICG’s long-term debt of $12.8 million and $15.5 million at June 30, 2012 and December 31, 2011, respectively, related to its consolidated core companies and consisted primarily of a term loan at Procurian.

	Interest Rates	June 30, 2012			December 31, 2011
		(in thousands)
Procurian term loan	1.99-3.09%	$	12,666		$	14,667
Capital leases and other debt	2.25-10.27%		173			853
			12,839			15,520
Current maturities			(4,173	)		(4,759	)
Long-term debt		$	8,666		$	10,761

Loan and Credit Agreements

As of June 30, 2012, Procurian and a number of its wholly-owned subsidiaries were party to a loan agreement with PNC Bank that provided for a revolving line of credit and a term loan. Under the line of credit, which was set to mature on August 2, 2013, Procurian was able to borrow up to $15.0 million and to obtain up to $5.0 million of letters of credit, subject to specified fees and other terms. The line of credit was subject to a 0.25% per annum unused commitment fee that was payable to the bank quarterly. Under the term loan, Procurian initially borrowed $20.0 million in order to fund a cash dividend paid to stockholders, including ICG, during 2010. Procurian also paid a nonrefundable $0.2 million commitment fee to PNC Bank upon the initial consummation of the line of credit and term loan. Both the line of credit and the term loan have been secured by a first priority lien on the assets of the borrowing companies.

The term loan and the line of credit both bore interest, at Procurian’s option, at either (1) a base rate equal to the highest of PNC Bank’s prime rate, the sum of the Federal Funds Open Rates plus 0.5% and the sum of the daily LIBOR rate plus 1.0%, or (2) a daily to six month LIBOR rate plus a margin ranging from 1.75% to 2.5%, depending on the then-current debt-to-EBITDA ratio of the borrowing companies. Under the loan agreement, any outstanding principal and interest under the line of credit would become due and payable periodically through August 2, 2013, the principal under the term loan was payable in $0.3 million monthly installments through August 1, 2015, and any outstanding interest under the term loan would become due and payable periodically through August 1, 2015. There are no amounts outstanding under the line of credit; the amounts outstanding under the term loan as of December 31, 2011 and June 30, 2012 are set forth in the table above.

On August 6, 2010, Procurian entered into an interest rate swap hedge agreement whereby 50% of the term loan was effectively converted to a fixed interest rate of 1.34% by the hedge agreement. At June 30, 2012, the effective interest rate being paid by Procurian under the term loan, including the applicable margin, was 1.99% for the portion of the loan tied to a floating LIBOR rate and 3.09% for the portion of the loan covered by the interest rate swap hedge agreement. Procurian terminated the hedge agreement, without penalty, on August 1, 2012.

On August 9, 2012, Procurian and PNC Bank entered into an amendment to the loan agreement. The amendment, among other things, (1) extended the term of the line of credit to August 2, 2015 and the term of the term loan to August 1, 2017, (2) increased the amount borrowed and outstanding under the term loan to $25.0 million (a $13.0 million increase from the August 9, 2012 term loan balance of $12.0 million) and (3) decreased the range of margins used to calculate the interest rates applicable to both the line of credit and the term loan from between 1.75% and 2.5% to between 1.5% and 2.0%. Following the amendment, any outstanding principal and interest under the line of credit will become due and payable periodically through August 2, 2015, the principal under the term loan is payable in $0.4 million monthly installments through August 1, 2017, and any outstanding interest under the term loan will become due and payable periodically through August 1, 2017.

On October 26, 2011, GovDelivery entered into a loan agreement with Venture Bank under which the company may borrow up to $1.0 million under a revolving line of credit that is secured by GovDelivery’s assets. The term of the line of credit expires on March 2, 2013. The line of credit bears interest at a base rate equal to the prime rate plus 2.0%, but in no case less than 7.0% (the interest rate at June 30, 2012 was 7.0%). No amounts were outstanding under the line of credit at June 30, 2012. There was $0.4 million outstanding on the line of credit at December 31, 2011.

On December 18, 2009, ICG entered into an amended and restated letter of credit agreement with Comerica Bank (the “LC Agreement”) that provides for the issuance of letters of credit of up to $10.0 million, subject to a cash-secured borrowing base, as defined by the LC Agreement. On December 16, 2011, ICG entered into an amendment to LC Agreement to extend the term through December 14, 2012. Issuance fees of 0.50% per annum of the face amount of each letter of credit will be paid to Comerica Bank upon issuance. The LC Agreement is also subject to a 0.25% per annum unused commitment fee payable to the bank on a quarterly basis. No amounts were outstanding under those agreements at June 30, 2012 or December 31, 2011.