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Debt

Term Loan and Revolving Credit Facility

On April 23, 2013, we entered into a new senior secured credit facility consisting of a six-year term loan (the Term Loan) of $255,000 issued at 99% of the Term Loan amount and a five-year revolving credit facility (the Revolving Credit Facility) of up to $20,000. As of March 31, 2014, nothing was outstanding under the Revolving Credit Facility. As of March 31, 2014, we are required to make quarterly principal payments totaling $2,319 annually over the remaining life of the Term Loan. As of March 31, 2014, the future maturities of principal under the Term Loan for the remainder of 2014 were $1,739 and for each of the years ending December 31, 2015, 2016, 2017 and 2018 were $2,319 with $219,118 due in 2019, with interest being due on the last business day of each March, June, September and December and dependent upon the type of loan outstanding under the Credit Agreement. The Term Loan replaced $252,000 of Senior Secured Notes that bore interest at 11.75% (the Notes).

The Term Loan and Revolving Credit Facility were established pursuant to a Credit Agreement (the Credit Agreement) which contains certain financial covenants, in particular a debt-to-adjusted-EBITDA ratio with a maximum allowance of 5.5:1 as of March 31, 2014. As of March 31, 2014, our debt-to-adjusted EBITDA ratio was 5.3:1 and we were in compliance with all other applicable covenants.

Based on an election we made pursuant to the terms of the Credit Agreement with respect to the interest period and optional rate, borrowings under the Credit Agreement bore interest at a rate of 6.00% per annum through March 31, 2014. As of March 31, 2014, current borrowings under our credit agreement had an effective interest rate of 6.60% and weighted average interest rate of 6.00%, determined as the LIBOR rate (subject to a 1.25% floor) plus 4.75%. To partially offset variable interest rate risks we have an interest rate cap at 3.00% (versus the 1.25% floor) with an initial notional amount equal to 50% of the total amount of Term Loan principal outstanding on October 21, 2013. The notional amount of the interest rate cap decreases over time by 50% of the anticipated quarterly principal payments.

During 2013, we capitalized $4,588 of debt issuance costs in other assets in our consolidated balance sheet. These issuance costs and the original issue discount of $2,550 are being amortized over the life of the loan using the effective interest method. The unamortized debt issuance costs and debt discount at March 31, 2014, are $3,810 and $2,117, respectively. For the three months ended March 31, 2014, we made required principal payments of $592 against the Term Loan as well as additional voluntary payments of $8,000.

In the three months ended March 31, 2014 and 2013, we recorded $4,119 and $8,139, respectively, of interest expense related to our debt, including $316 and $554, respectively, of amortization of debt issuance costs and $176 and $182, respectively, of amortization of the original issue debt discount.