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Term Loan And Revolving Credit Facility
 12 Months Ended
Dec. 31, 2011
Term Loan And Revolving Credit Facility [Abstract]  
Term Loan And Revolving Credit Facility
7. Term Loan and Revolving Credit Facility

On January 3, 2011, the Company entered into a $100 million revolving credit agreement. On April 4, 2011, the Company entered into an Amended and Restated Revolving Credit and Term Loan Agreement (the "Credit Facility") providing for a $100 million revolving credit facility and a $100 million term loan facility. The revolving portion of the Credit Facility, which includes a letter of credit subfacility of $50 million, matures on March 31, 2014, and amends and subsumes (as part of the new facility) the Company's previous $100 million revolving credit agreement. The term loan portion of the Credit Facility matures on March 31, 2014, and, commencing December 31, 2011, includes required quarterly amortization payments in the amount of $2.5 million on December 31, 2011, $5.0 million on March 31, 2012, and $7.5 million on June 30, 2012, and at the end of each quarter thereafter prior to the final maturity date. Borrowings under the Credit Facility bear interest at LIBOR or a base rate, plus a margin ranging from 2.25% to 2.75%, depending on the Company's leverage ratio. In addition, an unused commitment fee ranging from 0.30% to 0.40%, depending on the Company's leverage ratio, accrues on unused amounts under the revolving credit facility. The Credit Facility is collateralized by substantially all of the personal property assets of the Company and its subsidiaries. The Credit Facility contains customary affirmative, negative and financial maintenance covenants, representations, warranties, events of default and remedies upon default, including acceleration and rights to foreclose on the collateral securing the Credit Facility. The Company was in compliance with all the terms of the Credit Facility at December 31, 2011.

During the year ended December 31, 2011, the Company paid cash interest of $3.1 million, and the Company's average annual interest rate, including noncash charges for the amortization of debt financing costs, was 3.8%.

As of December 31, 2011, the Company had outstanding $97.5 million under the term loan facility and $20 million under the revolving credit facility. On January 20, 2012, the Company repaid $20 million representing the entire outstanding amount of the revolving credit facility.

 

Interest Rate Swap

On April 4, 2011, the Company entered into an interest rate swap arrangement (the "Swap") in order to minimize the interest rate exposure on the entire balance of the term loan facility. The interest rate swap fixes the variable interest rate on the associated debt at approximately 3.6% rather than being subject to fluctuations in the LIBOR rate. The term of the Swap is three years, matching the term of the underlying term loan facility. The Swap has been designated as a cash flow hedge and has been deemed effective in accordance with the Derivatives and Hedging Topic, ASC 815. The Company expects the Swap to continue to be deemed effective for the duration of the Swap. The fair value of the Swap is included in Other long-term liabilities in the Company's consolidated balance sheets.

Debt and short-term borrowings consist of the following as of December 31, 2011 (in thousands):

 

Term Loan

    $ 97,500   

Credit Facility

      20,000   
  

 

 

  

Total Debt

      117,500   

Less: Current portion of long-term debt

      27,500   
  

 

 

  

Long-term debt

    $ 90,000   
  

 

 

  

Aggregate debt maturities as of December 31, 2011 are as follows:

 

2012

    $ 27,500   

2013

      30,000   

2014

      60,000   
  

 

 

  
   $ 117,500