Note 8. Debt

Debt consisted of the following (in thousands):

		000000000		000000000
	November 30, 2011		August 31, 2011
Current portion of term loan	$	—	$	10,715
Revolving credit facility		32,000		—

Total current portion of long-term debt and short-term borrowings	$	32,000	$	10,715

Term Loan

The Company's $75.0 million, 7.28% fixed-rate term loan, had a 10-year term which originated in October 2001 and was financed through Prudential Capital. On October 17, 2011, the Company paid off the final balance due under this term loan of $10.7 million and the associated interest of $0.2 million with cash on hand.

Revolving Credit Facility

On June 17, 2011, the Company entered into an unsecured credit agreement with Bank of America, N.A. ("Bank of America"). The agreement consists of a $75.0 million three-year revolving credit facility. The proceeds of the credit facility will be used for the Company's general working capital needs and stock repurchases under any existing board approved share buy-back plans. Under the terms of the credit facility agreement, the Company may initiate loans in U.S. dollars or in foreign currencies from time to time during the three-year period, which expires on June 17, 2014. All loans denominated in U.S. dollars will accrue interest at the bank's Prime rate or at LIBOR plus a margin of 0.90 percent. All loans denominated in foreign currencies will accrue interest at LIBOR plus 0.90 percent (together with any applicable mandatory liquid asset costs imposed by non-U.S. banking regulatory authorities). Interest on outstanding loans is due and payable on a quarterly basis through the credit facility maturity date of June 17, 2014. The Company may also borrow against the credit facility through the issuance of standby letters of credit. Outstanding letters of credit are subject to a fee equal to 0.90 percent per annum applied to amounts available to be drawn on outstanding letters of credit. The Company will incur commitment fees for the credit facility at an annual rate of 0.15 percent applied to the portion of the total credit facility commitment that has not been borrowed until outstanding loans and letters of credit exceed $37.5 million.

The agreement includes representations, warranties and covenants customary for credit facilities of this type, as well as customary events of default and remedies. The agreement also requires the Company to maintain a minimum consolidated earnings before interest, income taxes, depreciation and amortization ("EBITDA") of $40.0 million, measured on a trailing twelve month basis, at each reporting period.

During the three months ended November 30, 2011, the Company drew $69.6 million U.S. dollars under the revolving credit facility. The Company repaid $37.6 million of these short-term loans and the associated interest in November 2011 with cash on hand. As of November 30, 2011, the Company had a $32.0 million outstanding balance on the revolving credit facility and was in compliance with all debt covenants under this credit facility.