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CREDIT AGREEMENTS
 12 Months Ended
Dec. 31, 2012
CREDIT AGREEMENTS

12. CREDIT AGREEMENTS

During the fourth quarter of 2012, we entered into a revolving credit facility pursuant to a Credit Agreement with BMO Harris Bank N.A., in its capacities as the initial lender thereunder and the administrative agent for the lenders which from time to time may be parties to the Credit Agreement. The revolving credit facility under the Credit Agreement is scheduled to mature on January 31, 2014. This Credit Agreement replaced our previous U.S. Credit Agreement, which expired on October 31, 2012. The Credit Agreement requires that interest and fees are payable quarterly in arrears and principal is payable at maturity.

We may prepay amounts outstanding under, or terminate, the Credit Agreement upon three or five business days’ prior notice, respectively, in each case without premium or penalty. The Credit Agreement contains customary affirmative, negative and financial maintenance covenants, including limits on capital expenditures and a requirement to maintain cash and cash equivalents in domestic accounts of at least $75.0 million at all times. The loans under the Credit Agreement are secured by 110% cash collateral. The agreement also contains customary representations and warranties, events of default, and rights and remedies upon the occurrence of any event of default, including rights to accelerate the debt and rights to realize upon the collateral securing the obligations under the Credit Agreement.

We borrowed the maximum amount of $80.0 million under the Credit Agreement during December 2012. The full amount borrowed as of December 31, 2012 is classified as short-term borrowings and current maturities of capital lease obligation on our consolidated balance sheet. The Credit Agreement required that borrowings bear interest at fluctuating interest rates under either the Base Rate Loan or as determined by the London Interbank Offered Rate (LIBOR) for the relevant currency, plus the applicable rate based on the type of loan.

 

Selected details of our Credit Agreements as of and for the years ended December 31, 2012 and 2011 were as follows:

 

     As of December 31,  
     2012(1)     2011(2)  
     (Dollars in thousands)  

Credit Agreements:

     

Credit facility remaining availability

    $ —        $ 178,310   

Credit facility borrowings

    $ 80,000      $ —     

Outstanding letters of credit(3)

    $ 6,981      $ 6,690   

Availability for additional letters of credit

    $ —        $ 43,310   

Average daily revolving credit borrowings for the year ended

    $ 219      $ —     

Weighted average annual interest rate

      5.25 %      0.00 % 

Commitment fee rate

      0.25 %      0.10 % 

Letter of credit fee rate(3)

      0.50 %      0.50 % 

 

(1) Details reflect terms under our existing Credit Agreement which was entered into during December 2012, except for our outstanding letters of credit.
(2) Details reflect terms under our previous U.S. Credit Agreement which expired October 31, 2012.
(3) Represents letters of credit which are fully collateralized with $7.4 million of restricted cash.