Short-term Borrowings, Long-Term Debt, and Interest Expense

Short-term borrowings and long-term debt consist of the following:



	June 30, 2014		December 31, 2013
Term loan due 2017	$	94,000	$	96,000
Revolver borrowings under the credit facility	45,000		67,000
Capital leases	8		9
Total borrowings	$	139,008	$	163,009
Less current portion	4,004		4,002
Long-term debt	$	135,004	$	159,007

The Company's credit facility includes a term loan of $100.0 million and a revolving line of credit from the Lenders of up to $225.0 million, including a $20.0 million letter of credit sub-facility, all maturing on December 21, 2017. Repayments of the term loan are required at the rate of 1% of original principal amount per quarter beginning on March 31, 2013.

As of June 30, 2014, $94.0 million was outstanding under the Term Loan and $45.0 million was outstanding under the revolving line of credit, both of which approximate fair value because they have a floating interest rate (determined using level 2 inputs within the fair value hierarchy) with total availability at $177.7 million, taking into account $2.3 million in face amount of letters of credit issued under the sub-facility. The current weighted average interest rate for all debt is 2.4%.

Simultaneously with initiating the new senior facility, Innophos entered into an interest rate swap, swapping the LIBOR exposure on $100.0 million adjusting quarterly consistent with the Term Loan, with a fixed rate of 0.9475% plus the applicable margin on the debt expiring in December 2017. This interest rate swap has been designated as a cashflow hedge (Level 2) with the changes in value recorded through other comprehensive income. The fair value of this interest rate swap is an asset of approximately $0.5 million as of June 30, 2014.

We manage our interest rate risk by balancing the amount of fixed-rate and floating-rate debt to the extent practicable consistent with our credit status.

Total interest paid by the Company for all indebtedness for the six months ended June 30, 2014 and June 30, 2013 was $2,160 and $2,394, respectively.

As of June 30, 2014, the Company was in full compliance with all debt covenant requirements.

Interest expense, net consists of the following:



	Three months ended						Six months ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Interest expense	$	1,022		1,538			$	1,607		2,616
Deferred financing cost	131			141			263			288
Interest income	(9		)	(10		)	(14		)	(21		)
Less: amount capitalized for capital projects	(16		)	(75		)	(23		)	(137		)
Total interest expense, net	$	1,128		$	1,594		$	1,833		$	2,746