Financing Arrangements

12 Months Ended

Dec. 31, 2011

Financing Arrangements

Financing Arrangements

Note 10.  Financing Arrangements

Convertible Subordinated Debt

        On March 30, 2009, Axcelis used $85 million of the proceeds of its sale of SEN to pay in full its outstanding 4.25% Convertible Senior Subordinated Notes which it had issued in May 2006.

Bank Credit Facility

        On April 25, 2011, the Company amended its revolving credit facility. The amended agreement provides for borrowings up to $30 million based primarily on accounts receivable. The facility has certain financial covenants requiring us to maintain minimum levels of operating results and liquidity. The agreement will terminate on April 10, 2015. The Company uses the facility to support letters of credit and hedging transactions.

        On December 27, 2011, the Company entered into a modification agreement relating to this facility, which revises the Company's covenant to require a minimum trailing six month adjusted net income (as defined in the agreement) for the six month period ending December 31, 2011 of ($3,000,000).

        At December 31, 2011 the Company's available borrowing capacity under the amended credit facility was $23.3 million and the Company was compliant with all covenants of the loan agreement.