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INDEBTEDNESS
3 Months Ended
Mar. 31, 2013
INDEBTEDNESS [Abstract]  
INDEBTEDNESS

6. INDEBTEDNESS

 

Long-term debt and capital lease obligations at March 31, 2013 and December 31, 2012 are as follows (in thousands):

 

    March 31,
2013
    December 31,
2012
 
Borrowings on credit facility   $ 177,801     $ 178,062  
Capital lease obligations     4,100       4,907  
Subtotal     181,901       182,969  
Less current portion     (2,403 )     (3,137 )
Total long-term debt and capital lease obligations   $ 179,498     $ 179,832  

 

Our credit facility consists of a $250.0 million revolver, a $50.0 million Term A loan and an uncommitted $75.0 million accordion feature. Our subsidiary, American Teleconferencing Services Ltd., or ATS, is the borrower under our credit facility, with PGi and certain of our material domestic subsidiaries guaranteeing the obligations of ATS under the credit facility, which is secured by substantially all of our assets and the assets of our material domestic subsidiaries. In addition, we have pledged as collateral all of the issued and outstanding stock of our material domestic subsidiaries and 65% of our material foreign subsidiaries. Proceeds drawn under our credit facility can be used for working capital, capital expenditures, acquisitions and other general corporate purposes. The annual interest rate applicable to borrowings under our credit facility, at our option, is (1) the base rate (the greater of either the federal funds rate plus one-half of one percent, the prime rate or one-month LIBOR plus one and one-half percent) plus an applicable percentage that varies based on our consolidated leverage ratio at quarter end, or (2) LIBOR for one, two, three, nine or twelve months adjusted for a percentage that represents the Federal Reserve Board's reserve percentage plus an applicable percentage that varies based on our consolidated leverage ratio at quarter end. The applicable percentage for base rate loans and LIBOR loans were 1.25% and 2.25%, respectively, at March 31, 2013 under our credit facility. Our interest rate on LIBOR loans, which comprised materially all of our outstanding borrowings as of March 31, 2013, was 2.70%. In addition, we pay a commitment fee on the unused portion of our credit facility that is based on our consolidated leverage ratio at quarter end. As of March 31, 2013, the rate applied to the unused portion of our credit facility was 0.35%. Our credit facility contains customary terms and restrictive covenants, including financial covenants. At March 31, 2013, we were in compliance with the covenants under our credit facility.