Financing Arrangements	12 Months Ended
Dec. 31, 2013
Financing Arrangements
Financing Arrangements	Note 11. Financing Arrangements Term Loan During the third quarter of 2013, the Company entered into a Business Loan Agreement with Northern Bank & Trust Company which provides for a three year term loan of $15.0 million secured by the Company's real estate in Beverly, Massachusetts. $0.8 million of the loan proceeds are held in a restricted interest reserve escrow account as shown under cash flows from financing activities in our Consolidated Statements of Cash Flows. The Bank will also maintain a reserve on the Company's loan account with the Bank for quarterly real estate taxes on the mortgaged property. The loan bears interest at 5.5% per annum, with payments of principal beginning August 5, 2014. Interest is payable monthly. All outstanding principal and interest is due and payable on July 5, 2016. The Company's term loan contains certain customary covenants which limit the Company's ability, with certain exceptions, to dispose of assets, engage in a new line of business, make material changes to our executive management team, effect a change of control, acquire another business, incur additional indebtedness, incur liens, pay dividends and make other distributions, and make investments. Furthermore, under the term loan, the Company is required to comply with certain financial covenants, including a Debt Service Ratio, Net Worth, and Liquidity. The Company was in compliance with all covenants associated with the term loan for the year-ended December 31, 2013. The Company is subject to a 3% early termination fee on amounts prepaid prior to July 5, 2014, a 2% fee on amounts prepaid between July 5, 2014 and July 5, 2015 and a 1% fee on amounts prepaid between July 5, 2015 and July 5, 2016. In the event of a default, the Company's interest rate will automatically increase 5% above the otherwise applicable rate. Credit Facility During the third quarter of 2013, the Company terminated its revolving credit facility with Silicon Valley Bank, which had provided for borrowings of up to $30.0 million due to the closing of the Term Loan with Northern Bank & Trust Company. With the termination of this facility, the Company cash collateralized two letters of credit issued by Silicon Valley Bank in the aggregate amount of $1.5 million. The Company paid a $0.3 million early termination fee to Silicon Valley Bank. During the fourth quarter of 2013, the Company reinstated a new revolving credit facility with Silicon Valley Bank. Under this new revolving credit facility, the Company has the ability to borrow up to $10.0 million on a revolving basis during its two year term. The Company's ability to borrow under this line of credit is limited to 80% of the then current amount of qualified accounts receivable. The agreement will terminate on October 31, 2015. At December 31, 2013, our available borrowing capacity under the revolving credit facility was $7.5 million. The Company has not drawn down on the line of credit, although a portion of the availability is being used to support outstanding letters of credit in the amount of $2.5 million in lieu of cash collateralization. The obligations under the credit facility are guaranteed by a domestic subsidiary of Axcelis and are secured by substantially all of the personal property of the Company and the guarantying subsidiary, as well as by all or a portion of the capital stock of its domestic and foreign subsidiaries. The principal amount outstanding under this credit facility will bear interest at a rate equal to the prime plus 1.00%. The Company will also incur a monthly fee equal to 0.375% per annum on any unused portion of the credit facility. The credit facility contains customary negative covenants which limit the Company's ability, with certain exceptions, to dispose of assets, engage in a new line of business, make material changes to our executive management team, effect a change of control, acquire another business, incur additional indebtedness, incur liens, pay dividends and make other distributions, make investments, make payments on subordinated debt and engage in transactions with affiliates other than transactions in the ordinary course of business on terms no less favorable than would be obtained in an arms-length transaction. Additionally, the credit facility has certain financial covenants requiring the Company to maintain minimum levels of operating results and liquidity. The Company was in compliance with all covenants associated with the credit facility for the year ended December 31, 2013. The Company is subject to a $0.1 million early termination fee if it decides to terminate the credit facility prior to the maturity date or if Silicon Valley Bank terminates the credit facility in the event of a default. In the event of a default, the interest rate will automatically increase 3.5% above the otherwise applicable rate.

Note 11. Financing Arrangements

Term Loan

During the third quarter of 2013, the Company entered into a Business Loan Agreement with Northern Bank & Trust Company which provides for a three year term loan of $15.0 million secured by the Company's real estate in Beverly, Massachusetts. $0.8 million of the loan proceeds are held in a restricted interest reserve escrow account as shown under cash flows from financing activities in our Consolidated Statements of Cash Flows. The Bank will also maintain a reserve on the Company's loan account with the Bank for quarterly real estate taxes on the mortgaged property. The loan bears interest at 5.5% per annum, with payments of principal beginning August 5, 2014. Interest is payable monthly. All outstanding principal and interest is due and payable on July 5, 2016.

The Company's term loan contains certain customary covenants which limit the Company's ability, with certain exceptions, to dispose of assets, engage in a new line of business, make material changes to our executive management team, effect a change of control, acquire another business, incur additional indebtedness, incur liens, pay dividends and make other distributions, and make investments.

Furthermore, under the term loan, the Company is required to comply with certain financial covenants, including a Debt Service Ratio, Net Worth, and Liquidity. The Company was in compliance with all covenants associated with the term loan for the year-ended December 31, 2013.

The Company is subject to a 3% early termination fee on amounts prepaid prior to July 5, 2014, a 2% fee on amounts prepaid between July 5, 2014 and July 5, 2015 and a 1% fee on amounts prepaid between July 5, 2015 and July 5, 2016.

In the event of a default, the Company's interest rate will automatically increase 5% above the otherwise applicable rate.

Credit Facility

During the third quarter of 2013, the Company terminated its revolving credit facility with Silicon Valley Bank, which had provided for borrowings of up to $30.0 million due to the closing of the Term Loan with Northern Bank & Trust Company. With the termination of this facility, the Company cash collateralized two letters of credit issued by Silicon Valley Bank in the aggregate amount of $1.5 million. The Company paid a $0.3 million early termination fee to Silicon Valley Bank.

During the fourth quarter of 2013, the Company reinstated a new revolving credit facility with Silicon Valley Bank. Under this new revolving credit facility, the Company has the ability to borrow up to $10.0 million on a revolving basis during its two year term. The Company's ability to borrow under this line of credit is limited to 80% of the then current amount of qualified accounts receivable. The agreement will terminate on October 31, 2015. At December 31, 2013, our available borrowing capacity under the revolving credit facility was $7.5 million.

The Company has not drawn down on the line of credit, although a portion of the availability is being used to support outstanding letters of credit in the amount of $2.5 million in lieu of cash collateralization. The obligations under the credit facility are guaranteed by a domestic subsidiary of Axcelis and are secured by substantially all of the personal property of the Company and the guarantying subsidiary, as well as by all or a portion of the capital stock of its domestic and foreign subsidiaries. The principal amount outstanding under this credit facility will bear interest at a rate equal to the prime plus 1.00%. The Company will also incur a monthly fee equal to 0.375% per annum on any unused portion of the credit facility.

The credit facility contains customary negative covenants which limit the Company's ability, with certain exceptions, to dispose of assets, engage in a new line of business, make material changes to our executive management team, effect a change of control, acquire another business, incur additional indebtedness, incur liens, pay dividends and make other distributions, make investments, make payments on subordinated debt and engage in transactions with affiliates other than transactions in the ordinary course of business on terms no less favorable than would be obtained in an arms-length transaction.

Additionally, the credit facility has certain financial covenants requiring the Company to maintain minimum levels of operating results and liquidity. The Company was in compliance with all covenants associated with the credit facility for the year ended December 31, 2013.

The Company is subject to a $0.1 million early termination fee if it decides to terminate the credit facility prior to the maturity date or if Silicon Valley Bank terminates the credit facility in the event of a default.

In the event of a default, the interest rate will automatically increase 3.5% above the otherwise applicable rate.