Long-term Debt

The table presents our long-term debt instruments and balances under capital lease obligations outstanding at June 30, 2012 and 2011 and September 30, 2011 (in thousands):



	June 30, 2012				June 30,		September 30,
	Carrying Amount		Debt Premium		2011		2011
Recourse to EZCORP:
Domestic line of credit up to $175,000 due 2015	$	114,700	$	—	$	26,500	$	17,500
Capital lease obligations	1,159		—		—		—
Non-recourse to EZCORP:
Secured foreign currency line of credit up to $3,700 due 2014	2,803		210		—		—
Secured foreign currency line of credit up to $71,800 due 2015	58,455		9,004		—		—
Secured foreign currency line of credit up to $21,975 due 2017	6,903		—		—		—
10% unsecured notes due 2013	1,570		—		—		—
16% unsecured notes due 2013	5,013		174		—		—
20% unsecured notes due 2013	11,725		1,511		—		—
10% unsecured notes due 2014	906		—		—		—
10% unsecured notes due 2015	402		—		—		—
18% secured notes due 2015	4,273		611		—		—
10% unsecured notes due 2016	116		—		—		—
Total long-term obligations	$	208,025	$	11,510	$	26,500	$	17,500
Less current portion	31,521		—		—		—
Total long-term and capital lease obligations	$	176,504	$	11,510	$	26,500	$	17,500

On May 10, 2011, we entered into a new senior secured credit agreement with a syndicate of five banks, replacing our previous credit agreement. Among other things, the new credit agreement provides for a four year $175 million revolving credit facility that we may, under the terms of the agreement, request to be increased to a total of $225 million. Upon entering the new credit agreement, we repaid and retired our $17.5 million outstanding debt. The new credit facility increases our available credit and provides greater flexibility to make investments and acquisitions both domestically and internationally.

Pursuant to the credit agreement, we may choose to pay interest to the lenders for outstanding borrowings at LIBOR plus 200 to 275 basis points or the bank's base rate plus 100 to 175 basis points, depending on our leverage ratio computed at the end of each calendar quarter. On the unused amount of the credit facility, we pay a commitment fee of 37.5 to 50 basis points depending on our leverage ratio calculated at the end of each quarter. Terms of the credit agreement require, among other things, that we meet certain financial covenants. At June 30, 2012, we were in compliance with all covenants. We expect the recorded value of our debt to approximate its fair value, as it is all variable rate debt and carries no pre-payment penalty, and would be considered a level 3 estimate within the fair value hierarchy.

Deferred financing costs related to our credit agreement are included in intangible assets, net on the balance sheet and are being amortized to interest expense over the term of the agreement.

On January 30, 2012, we acquired a 60% ownership interest in Crediamigo, a specialty consumer finance company headquartered in Mexico City. Non-recourse debt amounts in the table above represent Crediamigo’s third party debt. All lines of credit are guaranteed by the Crediamigo loan portfolio. Interest on lines of credit due 2014 and 2015 is charged at the Mexican Interbank Equilibrium ("TIIE") plus a margin varying from 9% to 20%. The line of credit due 2014 requires monthly payments of $0.1 million with remaining principal due at maturity. The line of credit due 2015 requires monthly payments of $0.8 million increasing to $1.9 million on November 30, 2012, with the remaining principal due at maturity. Beginning September 30, 2012, the 18% secured notes require monthly payments of $0.1 million with remaining principal due at maturity. The debt premium on Crediamigo’s debt was recorded at acquisition and is being amortized as a reduction of interest expense over the life of the debt. We expect the recorded value of our debt to approximate its fair value and would be considered level 3 estimates within the fair value hierarchy.

On June 29, 2012 Crediamigo renegotiated their revolving line of credit originally due 2016. The interest rate was decreased from 20% to 14.5% and the term was extended 6 months, now being due at the end of April 2017. The maximum borrowing capacity was also raised from $14.6 million to $22.0 million. Due to the substantial improvement in the renegotiated terms, the remaining unamortized premium of $2.8 million, valued at acquisition, was accelerated and recognized as a reduction to interest expense in the current quarter.

Included in the amounts above are notes due to Crediamigo’s shareholders, which are presented in the table below (in thousands):



	June 30, 2012
16% unsecured notes due 2013	$	5,013
10% unsecured notes due 2014	906
Secured foreign currency line of credit due 2015	10,284
Total debt to stockholders	$	16,203