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Long term debt | 12 Months Ended
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Dec. 31, 2011
Long term debt | 12. Long term debt Long term debt consists of the following:
|  | December 31, |
|  | 2011 |  |  | 2010 |
Fixed rate bonds bearing interest at a rate of 5.95%; repayable in quarterly installments of $526,010; secured through an inter-creditor agreement with the Republic Bank & Trust by substantially all of the Company’s assets. Redeemable in full at any time after August 4, 2009 at a premium of 1.5% of the outstanding principal and accrued interest on the bonds on the date of redemption (1) |  | $ | 8,650,503 |  |  | $ | 10,182,449 |
Series A bonds bearing interest at the annual fixed rate of 7.5%, payable quarterly; maturing on June 30, 2015 (2) |  |  | 8,500,000 |  |  |  | 8,500,000 |
Borrowings under non-revolving credit facility (3) |  |  | 7,500,000 |  |  |  | - |
Total debt |  |  | 24,650,503 |  |  |  | 18,682,449 |
Less discount |  |  | 266,709 |  |  |  | 375,664 |
Less current portion |  |  | 17,531,134 |  |  |  | 1,422,991 |
Long term debt, excluding current portion |  | $ | 6,852,660 |  |  | $ | 16,883,794 |
| (1) | The Company has collateralized all borrowings under the 5.95% fixed rate bonds by providing a first debenture over fixed and floating assets, a first legal charge over all land and buildings, a security interest in all insurance policies and claims, a reimbursement agreement for standby letters of credit, a pledge of capital stock of each subsidiary and guarantees and negative pledges from each company where a majority interest exists.
The trust deed for these bonds restricts our ability to enter into new borrowing agreements or any new guarantees without prior approval of the trustee and limits our capital expenditures, with the exception of capital expenditures to be incurred on certain defined projects, to $2.0 million annually without prior approval by the trustee. The trust deed also contains financial covenants that require us to maintain a debt service coverage ratio, a ratio of long term debt to EBITDA (i.e. earnings before interest, taxes, depreciation and amortization) for the 12 months preceding the ratio calculation date and a ratio of long term debt to equity. As of December 31, 2011, we were deemed to be in compliance with the covenants under the trust deed.
| (2) | In July 2005, CW-Bahamas sold B$10.0 million Series A bonds to Bahamian citizens and permanent resident investors in The Bahamas to finance a portion of the construction cost of its Blue Hills plant. These bonds mature on June 30, 2015 and accrue interest at the annual fixed rate of 7.5%. Interest is payable quarterly. CW-Bahamas has the option to redeem the bonds in whole or in part without penalty commencing after June 30, 2008. The Company has guaranteed CW-Bahamas repayment obligations upon an “event of default” as defined in the guarantee agreement. If the Company pays any amounts pursuant to the guarantee, it will be subrogated to all rights of the bondholders in respect of any such payments. The guarantee is a general unsecured obligation junior to the Company’s other secured obligations. The Company redeemed $1.5 million of these bonds in September 2010. The Company has elected to redeem the balance of these bonds on March 31, 2012.
| (3) | In October 2011, the Company entered into a $10.0 million Credit Agreement which includes a non-revolving credit facility. The credit facility expires 12 months from the date of the initial advance. The initial advance of $7.5 million was drawn on December 30, 2011 and matures December 31, 2012. Interest on this loan is based on the bank's term deposit rate plus 1% per annum. The Company is required to maintain an interest bearing cash deposit account as collateral for the borrowings in an amount equal to the amount of the borrowings.
As of December 31, 2011, the aggregate debt repayment obligations for the next five years are as follows:
2012 |  | $ | 17,531,134 |
2013 |  |  | 1,647,493 |
2014 |  |  | 1,772,690 |
2015 |  |  | 1,907,398 |
2016 |  |  | 1,525,079 |
|  | $ | 24,383,794

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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