Long-Term Debt

9 Months Ended

Sep. 30, 2011

Note 5 — Long-Term Debt

As of September 30, 2011 and December 31, 2010, the following credit facilities and long-term debt arrangements with financial institutions were in place:


	September 30,			December 31,
	2011			2010
	(in thousands)
Term loan, net of unamortized deferred financing costs	$	25,622		$	32,034
Equipment notes		74			105

		25,696			32,139
Less: Current maturities of long-term debt		(8,729	)		(8,655	)

	$	16,967		$	23,484

Term Loan

The Company has a term loan (Term Loan) with two participating financial institutions. The Term Loan was amended in November 2010 to provide for a draw feature available through May 9, 2011, under which the Company borrowed an additional $1.1 million used solely for purchases of equipment. In May 2011, the Company further amended its Term Loan, increasing the principle balance by $0.1 million, extending the maturity of the loan to May 2014 and removing the requirement to maintain compensating cash balances.

Additionally, the amended Term Loan bears a reduced interest rate of LIBOR plus a margin ranging from 2.25% to 3.25%, based on a ratio of funded debt to Adjusted EBITDA, a non-GAAP financial measure as defined in the agreement. Interest is payable monthly along with quarterly principal installments of $2.2 million, with the balance due May 31, 2014. The weighted average interest rate for the three and nine months ended September 30, 2011 was 3.3% and 4.2%, respectively, with an interest rate of 3.0% at September 30, 2011.

The Term Loan is secured by substantially all the assets of the Company. As of September 30, 2011, the Term Loan had outstanding principal of $25.7 million.

Covenants and Restrictions

The Company’s Term Loan contains certain covenants and restrictions, including restricting the payment of cash dividends and maintaining certain financial covenants such as a ratio of funded debt to Adjusted EBITDA, a non-GAAP financial measure as defined in the agreement, and a fixed charge coverage ratio. If any default occurs related to these covenants, the unpaid principal and any accrued interest shall be declared immediately due and payable. As of September 30, 2011 and December 31, 2010, the Company was in compliance with all covenants.

Debt Maturities

The following table sets forth the aggregate principal maturities of long-term debt after September 30, 2011, net of unamortized deferred financing cost amortization, for years ending December, 31, (in thousands):


2011	$	2,180
2012		8,735
2013		8,749
2014		6,032

Total debt, including current maturities	$	25,696