Debt

On December 15, 2016, we entered into a Fifth Amended and Restated Financing and Security Agreement (the “Credit Agreement”). The Credit Agreement provides for a new revolving credit facility up to a maximum principal amount of $100 million, expiring on December 31, 2021 and for a term loan in the maximum principal amount of $40 million maturing on April 30, 2020. The Credit Agreement is secured by substantially all of our assets. The new term loan was used to refinance the $11.1 million remaining balance of the existing term loan and $28.9 million of borrowings outstanding under the existing revolving credit facility as of December 15, 2016.

The maximum interest rate on the Credit Agreement is the daily one-month LIBOR market index rate (for borrowings in Dollars and Sterling) or the daily one-month EURIBOR (for borrowings in Euros) plus 2.50%. Based on our financial performance, the interest rate can be reduced to a minimum rate of the daily one-month LIBOR market index rate plus 1.25%, with the rate being determined based on our maximum leverage ratio for the preceding four quarters. Each unpaid advance on the revolving loan will bear interest until repaid. The term loan is payable in monthly installments of principal in the amount of $1.0 million each plus applicable interest, beginning on January 1, 2017. We may prepay the term loan or the revolving loan, in whole or in part, at any time without premium or penalty, subject to certain conditions. Amounts repaid or prepaid on the term loan may not be reborrowed.

The Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict our and our subsidiaries’ (subject to certain exceptions) ability to, among other things, grant liens, make investments, incur indebtedness, merge or consolidate, dispose of assets or make acquisitions. We are also required to maintain compliance with a minimum fixed charge coverage ratio and a maximum leverage ratio. We were in compliance with each of these financial covenants under the Credit Agreement as of December 31, 2016. As of December 31, 2016, our total long-term debt outstanding under the term loan was $40.0 million. In addition, there were $17.7 million of borrowings outstanding and $76.6 million of available borrowings under the revolving credit facility as of December 31, 2016. For the years ended December 31, 2016 and 2015, the weighted average interest rate on our borrowings was 2.2% and 2.0%, respectively. As of December 31, 2016, the fair value of our borrowings under the Credit Agreement approximated its carrying value as it bears interest at variable rates.

As of December 31, 2016, our future minimum payments of long-term debt are as follows (in thousands):



Fiscal year ending:
2017	$	12,000
2018	12,000
2019	12,000
2020	4,000
Total	$	40,000