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Long-Term Debt

3 Months Ended

Sep. 30, 2011

NOTE 10—LONG-TERM DEBT

Long-term debt

Long-term debt is comprised of the following:


	As of September 30, 2011		As of June 30, 2011
Long-term debt
Term loan	$	284,278	$	285,026
Revolver		48,500		—
Mortgage		11,895		12,552

		344,673		297,578
Less:
Current portion of long-term debt
Term loan		2,993		2,993
Revolver		48,500		—
Mortgage		11,895		12,552

		63,388		15,545

Long-term portion of long-term debt	$	281,285	$	282,033

Term loan

The term loan has a seven-year term, expires on October 2, 2013 and bears interest at a floating rate of LIBOR plus 2.25%. The quarterly scheduled term loan principal repayments are equal to 0.25% of the original principal amount, due each quarter with the remainder due at the end of the term, less ratable reductions for any non-scheduled prepayments made. Our current quarterly scheduled principal payment is approximately $0.7 million.

For the three months ended September 30, 2011, we recorded interest expense of $1.8 million relating to the term loan (three months ended September 30, 2010—$1.9 million).

Revolver

Prior to September 29, 2011, the revolver had a five-year term and expired on October 2, 2011. However, on September 29, 2011, we extended the revolver for 60 days without change to any of the previous terms except that the amount available to borrow under the revolver was changed to $50.0 million from $75.0 million. Borrowings under this facility bear interest at rates specified in the credit agreement. The revolver is subject to a "stand-by" fee ranging between 0.30% and 0.50% per annum depending on our consolidated leverage ratio.

As of September 30, 2011, we have a net borrowed amount outstanding of $48.5 million on the revolver.

For the three months ended September 30, 2011, we recorded an interest expense of $0.6 million relating to borrowings outstanding on the revolver (three months ended September 30, 2010—nil). During this period we also recorded an expense of $0.06 million on account of stand-by fees relating to the revolver (three months ended September 30, 2010—$0.06 million).

Mortgage

In December 2005, we entered into a five-year mortgage agreement with the bank. The principal amount of the mortgage was for Canadian $15.0 million and was originally scheduled to mature on January 1, 2011. During Fiscal 2011, the mortgage was extended for a total of twelve-months, now maturing on January 1, 2012. The principal amount of the mortgage did not change upon extension, however, interest now accrues monthly at a variable rate of Canadian prime plus 0.50% (instead of a fixed rate of 5.25% per annum). Principal and interest are payable in monthly installments of Canadian $0.1 million with a final lump sum principal payment of Canadian $11.9 million due on maturity. The mortgage continues to be secured by a lien on our headquarters in Waterloo, Ontario, Canada.

As of September 30, 2011, the carrying value of the mortgage was $11.9 million (June 30, 2011—$12.6 million).

As of September 30, 2011, the carrying value of the Waterloo building that is securing the mortgage was $15.3 million (June 30, 2011—$15.4 million).

For the three months ended September 30, 2011, we recorded interest expense of $0.1 million relating to the mortgage (three months ended September 30, 2010—$0.2 million).