Subsequent Events

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

11. Subsequent Events

In April 2014, the Company entered into a term loan agreement with a new lender to refinance its existing credit facility and potentially incur up to an aggregate of $45.0 million in term loan borrowings or up to an aggregate of approximately $52.0 million if it elects to exercise in full an option to defer payment of a portion of the interest that would accrue on the borrowings under the term loan agreement. The Company has committed to borrow no less than $30.0 million under the agreement, from which it will repay the outstanding balance under its existing credit facility plus the related $1.0 million end of term payment and a $0.3 million make-whole premium. The Company expects to record a total charge of $1.4 million related to the repayment. All borrowings under this new term loan agreement will accrue interest at 12.5% annually, of which 3.5% can be deferred and paid at the end of the six-year term. The Company will make interest-only payments for the first five years. The Company has the option to prepay the term loans, in whole or in part, at any time subject to payment of a redemption fee. This new term loan agreement contains customary conditions to borrowings, events of default and negative covenants, including covenants that could limit the Company’s ability to, among other things, incur additional indebtedness, liens or other encumbrances, make dividends or other distributions; buy, sell or transfer assets; engage in any new line of business; and enter into certain transactions with affiliates. The new term loan agreement also includes liquidity and revenue-based financial covenants. The Company’s obligations under the new term loan agreement are collateralized by substantially all of its assets.