Note 9.

Debt and Other Obligations

Our long-term obligations were as follows:

(Dollars in thousands)	December 31, 2013		December 31, 2012
Debt (current and long-term)	$	134,932	$	136,335
Capital leases		275		446
Total debt		135,207		136,781
Current portion of:
Debt		1,353		1,420
Capital leases		233		228
Current maturities of long-term obligations		1,586		1,648
Long-term debt obligations, net of current maturities	$	133,621	$	135,133

On October 30, 2013 we amended our credit facility with a syndicate of banks, led by CoBank, ACB. Under the terms of the amended credit facility, we have the option to pay interest at LIBOR or at a Base Rate, as defined in the agreements, plus an applicable margin. The amendment combined the various term loan components of our previous credit facility into one term loan and extended the maturity date of the credit facility to December 31, 2019. Additional financing charges of $1,287,000 were deferred, and $143,000 of unamortized debt issuance costs and new issuance costs were recognized in interest expense during the fourth quarter of 2013. The amendment did not change the amount of our outstanding debt. We expect our interest rate derivative contracts to maintain their designation as effective cash flow hedges. See Note 12 "Financial Derivative Instruments."

Key components of our credit facility remain. Similarly, our amended credit facility is comprised of a $30,000,000 revolving credit component and a $135,270,000 term loan component. The amendment lowered our margin by approximately 25 basis points, and based on our current leverage ratio our interest rate is 275 basis points over LIBOR.

Under the terms of our amended credit facility we are required to make quarterly principal payments of $338,000. The revolving credit component does not require quarterly principal payments. We do not have an outstanding balance in the revolving credit component at this time.

The term loan component has a provision whereby we periodically receive patronage capital refunds from our lender. Patronage refunds are recorded as an offset to interest expense and amounted to $722,000 in 2013, $707,000 in 2012 and $529,000 in 2011.

At December 31, 2013, we are in compliance with specified financial ratios and tests required by our credit facility. The credit facility includes allowances for continued payment of dividends and specific limits on common stock repurchases.

Our obligations under the amended credit facility are secured by a first-priority lien on the property and assets, tangible and intangible, of HickoryTech and its subsidiaries, which includes total assets with the exception of the Equipment Segment accounts receivable and inventory totaling $16,566,000 and assets purchased or constructed through Federal funding, reflecting the NTIA Federal interest in the BTOP grant-funded network. We have also given a first-priority pledge of the capital stock of our subsidiaries to secure the credit facility. The credit facility has working capital requirements, and contains certain restrictions that, among other things, limit or restrict our ability to create liens or encumbrances; incur additional debt; issue stock; make asset sales, transfers, or dispositions; and engage in certain mergers and acquisitions; pay dividends or purchase/redeem Company stock over specified maximum values. None of these restrictions inhibit our business plan.

Our effective interest rate was 3.4%, 4.2% and 4.1% in 2013, 2012 and 2011, respectively. Annual requirements for principal payments for the years subsequent to 2013 are as follows:

(Dollars in thousands)
2014	$	1,353
2015		1,353
2016		1,353
2017		1,353
2018		1,353
Thereafter		128,167
	$	134,932