Debt

Long-term debt payable consists of the following:



	Balance as of (in thousands)
	June 30, 2014			June 30, 2013
Senior secured revolving commitment	$	9,310		$	—
Senior secured term loan	43,875			—
Senior secured delayed draw term loan	23,700			—
Revolving line of credit	—			2,868
Term loan A	—			3,010
Term loan B	—			5,288
Term bridge loan	—			5,032
Convertible note	—			17,600
Convertible note interest discount ⁽¹⁾	—			(1,734		)
Other	291			—
Total long-term debt	77,176			32,064
Less: current portion	(14,419		)	(7,410		)
Non-current portion	$	62,757		$	24,654


(i)	The interest discount represented the difference between the actual negotiated interest rate being the Five-Year U.S. Treasury Note Constant Maturity rate, and the Company’s assumption of market rate of 4%.

Senior Secured Credit Facility

On April 7, 2014, six of the Company's fifteen subsidiaries, AFT, ARC Wireless, Inc., Flomet LLC, GF&F, Tekna Seal LLC, and 3DMT, acting as borrowers (each a "Borrower" and collectively, the "Borrowers") entered into a Credit Agreement (the "Credit Agreement") with Citizens Bank as Administrative Agent, Collateral Agent, Sole Lead Arranger and Sole Bookrunner, and Capital One, N.A., as Syndication Agent. The Credit Agreement provides for availability of up to $90.0 million, consisting of (i) a senior secured revolving commitment in the principal amount of $20.0 million; (ii) a senior secured term loan commitment in the principal amount of $45.0 million; and (iii) a senior secured delayed draw term loan commitment in the principal amount of $25.0 million (the "Credit Facility"). The obligations of the Borrowers under the Credit Agreement are guaranteed by the Company and its subsidiaries ARC Wireless, LLC, Quadrant Metals Technologies LLC, Advance Tooling Concepts, LLC, and Thixoforming LLC.

The Credit Agreement has several borrowing options, including interest rates that are based on: (i) a defined Base Rate (as defined in the Credit Agreement), plus a margin based on the applicable Leverage Ratio, payable monthly; or (ii) an Eurodollar Rate (as defined in the Credit Agreement) plus a margin based on the applicable Leverage Ratio, payable at the end of the applicable interest period for the borrowing and, for interest periods in excess of three months, on the date that is three months after the commencement of the interest period. The Base Rate represents a rate per annum equal to the highest of (a) Citizens Bank’s then publicly announced prime rate, (b) Federal Funds Rate as then in effect plus 1/2 of 1.0% or (c) the Adjusted Eurodollar Rate (as defined in the Credit Agreement) as then in effect plus 1.0%. At June 30, 2014, interest rates on borrowings under the Credit Agreement ranged from 3.15% to 5.25%.

The Company may voluntarily prepay the loans under the Credit Agreement without penalty or premium. The Credit Facility contains affirmative and negative covenants that the Company believes are usual and customary for a senior secured credit agreement. The negative covenants include among other things, limitations on asset sales, mergers and acquisitions, indebtedness, liens, dividends, investments and transactions with affiliates. The Credit Facility also requires that the Company comply with a maximum leverage ratio and a minimum interest coverage ratio. The Company was not in compliance with its debt covenants as of June 30, 2014, however, it obtained a waiver from certain provisions in which it was not in compliance.

The Company made draws on the Credit Facility at closing for the following purposes: (i) to finance the acquisitions of ATC, Thixoforming and Kecy; (ii) to repay amounts outstanding under the Company’s First Amended and Restated Loan Agreement with TD Bank, N.A., as Administrative Agent; (iii) to repay the Company’s Unsecured Subordinated Convertible Promissory Note due to Precision Castparts Corp.; (iv) to pay fees and expenses related to the closing of the transactions; and (v) for general corporate purposes.

First Amended and Restated Loan Agreement with TD Bank, N.A.

On August 12, 2012, QMT entered into an agreement with TD Bank, N.A. for a $25.0 million credit facility consisting of a Revolving line of credit, Term loan A, Term loan B, and the Term Bridge loan. On April 7, 2014, in connection with the Company's execution of the Credit Agreement, the Company's subsidiary terminated the First Amended and Restated Loan Agreement and interest rate swaps, and repaid all associated outstanding balances.

Convertible Note

On August 8, 2012, the Company issued a Convertible Note payable to Precision Castparts Corp. in the amount of $17.6 million and was due at August 8, 2017. Subject to certain terms of the agreement the note was convertible into shares of the Company’s Common Stock. On April 7, 2014, in connection with the Company's execution of the Credit Agreement, the Company redeemed the Convertible Note for $15.6 million, a $2.0 million discount to the note's face value of $17.6 million.

The following schedule represents the Company's future debt payments as of June 30, 2014 (in thousands):



2015	$	14,419
2016	6,408
2017	7,040
2018	6,991
2019	42,318
Total	$	77,176