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REVOLVING CREDIT FACLITY (Notes)
12 Months Ended
Dec. 31, 2014
Revolving Credit Facility [Abstract]  
Revolving Credit Facility
REVOLVING CREDIT FACILITY
On April 12, 2013, we entered into a three-year $25.0 million senior secured revolving credit facility ("credit facility") with Silicon Valley Bank. On October 21, 2014, we entered into Amendment Agreement No. 4 with Silicon Valley Bank ("Amendment"), which extends the term of our credit facility to October 12, 2017. In the absence of an event of default, any amounts outstanding under the credit facility may be repaid and re-borrowed anytime until the termination date. This Amendment also allows us to make a one-time request to increase the existing credit facility up to an additional $25.0 million.
Under the Amendment, the advances available to us under the borrowing base formula increased to 85 percent of eligible accounts receivable and advance billings and 50 percent of eligible inventory.

The Amendment also retroactively lowered our required minimum consolidated earnings before interest, tax, depreciation, and amortization ("EBITDA") from $6.0 million to $2.0 million for the two consecutive quarters immediately prior to the end of the reporting period, commencing with the fiscal quarter ended September 28, 2014; established a minimum quick ratio requirement equal to or greater than 1.00 through March 29, 2015 and 1.25 thereafter; and removed certain financial covenants when our "Available Funds," as defined in the Amendment to be cash, cash equivalents and availability under the credit agreement, are equal to or greater than $30.0 million as of the last day of such fiscal quarter.

At our option, the borrowings under the credit facility can bear interest at an Alternate Base Rate (“ABR”) or Eurodollar Rate. ABR loans bear interest at a per annum rate equal to the greater of the Federal Funds Effective Rate plus 0.5 percent or the prime rate, plus an applicable margin. Eurodollar loans bear interest at a margin over British Bankers' Association LIBOR Rate divided by 1 minus Eurocurrency Reserve Requirements. The Amendment lowered the applicable margin, as defined in the Amendment, with respect to our interest rate on outstanding borrowings to zero percent for ABR loans and 2.75 percent per annum for Eurodollar loans. As of December 31, 2014, the effective interest rate on any outstanding borrowings would have been 3.25 percent per annum, which is variable and represents the greater of the Federal Funds Effective Rate plus 0.50 percent or the prime rate. If an event of default occurs under the credit facility, the interest rate will increase by 2.0 percent per annum.

The obligations under the credit facility are guaranteed by Mattson International, Inc., our wholly-owned subsidiary (together with Mattson, collectively referred to as the “Loan Parties”), and are secured by substantially all of the assets of the Loan Parties, including a pledge of the capital stock holdings of the Loan Parties in certain of our direct subsidiaries.
The credit facility contains customary affirmative covenants and negative covenants including financial covenants requiring us and our subsidiaries to maintain a minimum level of consolidated EBITDA, for two consecutive quarters, and a minimum quick ratio, as well as restrictions on liens, investments, indebtedness, fundamental changes, sale leaseback transactions, swap agreements, accounting changes, dispositions of property, making certain restricted payments (including restrictions on dividends and stock repurchases), entering into new lines of business, and transactions with affiliates. Additionally, our credit facility restricts our ability to pay dividends, subject to certain limited exceptions.
The obligations under the credit facility may be accelerated upon the occurrence of an event of default under the credit facility, which includes customary events of default, including payment defaults, defaults in the performance of affirmative and negative covenants, the material inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, defaults relating to matters such as ERISA, judgments, and a change of control. Due to the potential for acceleration of obligations under the credit facility upon the occurrence of certain events, some of which are outside our control, borrowings under the credit facility are classified within current liabilities in the consolidated balance sheets.
We incurred $0.4 million in debt issuance costs in connection with the credit facility and a commitment fee of $62,500 related to the extension of the term of the facility from April 12, 2016 to October 12, 2017. These costs are being amortized over the term of the credit facility. In addition, we pay monthly commitment fees equal to 0.375 percent per annum on the unused portion of the credit facility.
At December 31, 2014 and 2013, we had zero and $14.0 million, respectively, outstanding under the credit facility.