Note 8. Debt

Debt at March 31, 2012 consisted of the following (in thousands):


	March 31, 2012
	Principal			Unamortized Discount			Total
Comerica - Growth Capital Loan A, due 2015	$	5,000		$	(75	)	$	4,925
Comerica - Revolving Line of Credit, due 2013		2,300			0			2,300

Total debt		7,300			(75	)		7,225
Less: debt - current		(3,134	)		35			(3,099	)

Debt - non-current	$	4,166		$	(40	)	$	4,126

Debt at December 31, 2011 consisted of the following (in thousands):


	December 31, 2011
	Principal			Unamortized Discount			Total
Comerica - Growth Capital Loan A, due 2015	$	5,000		$	(84	)	$	4,916
Comerica - Revolving Line of Credit, due 2013		2,300			0			2,300

Total debt		7,300			(84	)		7,216
Less: debt - current		(2,554	)		35			(2,519	)

Debt - non-current	$	4,746		$	(49	)	$	4,697

Principal and interest payments on debt at March 31, 2012 are expected to be as follows for each of the following five years (in thousands):


Year ended December 31,
2012 (remaining nine months)	$	741
2013		4,306
2014		1,805
2015		1,334
2016		0

2011 Growth Capital Facility

In September 2011, the Company entered into a loan and security agreement (the "Credit Agreement") with Comerica Bank ("Comerica"). The Credit Agreement provides for a growth capital loan of up to $8.0 million ("Growth Capital Loan") and a formula based revolving line of credit ("RLOC") of up to $4.0 million plus any unused amounts from the Growth Capital Loan. Under the Credit Agreement, the Company is limited to an aggregate borrowing of up to $10.0 million at any time. The Company pledged all current and future assets, excluding its intellectual property and 35% of the Company's investment in its subsidiary, Cerus Europe B.V., as security for borrowings under the Credit Agreement.

Growth Capital Loan

Concurrent with the execution of the Credit Agreement, in September 2011, the Company borrowed $5.0 million of the Growth Capital Loan ("Growth Capital Loan A"), substantially all of which was used to repay the Company's prior debt with Oxford Finance Corporation ("Oxford"), with the remainder used for general corporate purposes. Growth Capital Loan A, which matures in 48 months, bears a fixed interest rate of 6.37%, with interest–only payments due for the first twelve months, followed by equal principal and interest payments for the remaining 36 months.

The Company may draw up to an additional $3.0 million of the Growth Capital Loan ("Growth Capital Loan B") until June 30, 2012. If drawn, Growth Capital Loan B will bear a fixed interest rate based on the higher of (i) 6.25% or (ii) 6.00% plus the three month LIBOR rate at the date of draw, with interest–only payments due for the first six months followed by equal principal and interest payments for the remaining 36 months. As of March 31, 2012, the Company had not drawn down any amounts under the Growth Capital Loan B.

In September 2011, the Company incurred a commitment fee of $40,000 and loan fees of $50,000, which were recorded as a discount to its Growth Capital Loan A and are being amortized as a component of interest expense using the effective interest method over the term of the Growth Capital Loan A (discount was based on an implied interest rate of 7.07%). The Company will also be required to make a final payment fee of 1% of the amounts drawn under Growth Capital Loan A and Growth Capital Loan B due on the earlier of (i) prepayment of the Growth Capital Loan or (ii) the maturity of the Growth Capital Loan. The final payment fee will be accreted to interest expense using the effective interest method over the life of the Growth Capital Loan A and B upon draw.

Revolving Line of Credit

The Credit Agreement also provides for a RLOC of up to $4.0 million plus any unused amounts from Growth Capital Loan B ("RLOC Loan Amount"). The amount available under the RLOC, which is available to the Company until September 30, 2013, is limited to the lesser of (i) 80% of eligible trade receivables or (ii) the RLOC Loan Amount. In December 2011, the Company drew down $2.3 million under the RLOC. The RLOC bears a floating rate based on the lender's prime rate plus 1.50%, with interest–only payments due each month. At both March 31, 2012 and December 31, 2011, the floating rate of the RLOC was at 4.75%. The Company is required to repay the principal drawn from the RLOC at the end of the RLOC term on September 30, 2013. In September 2011, the Company incurred a commitment fee of $20,000, and will pay the same commitment fee at each annual anniversary of the RLOC. At both March 31, 2012 and December 31, 2011, the Company had $2.3 million outstanding under the RLOC.

Compliance with Covenants

The Company is required to maintain compliance with certain customary and routine financial covenants under the Credit Agreement, including maintaining a minimum cash balance of $2.5 million with Comerica and achieving minimum revenue levels, which are measured monthly based on a six-month trailing basis and must be at least 75% of the pre-established future projected revenues for the trailing six-month period. Non-compliance with the covenants could result in the principal of the note becoming due and payable. As of March 31, 2012, the Company was in compliance with the financial covenants as set forth in the Credit Agreement.

2010 Growth Capital Facility

In March 2010, the Company entered into a growth capital facility agreement with Oxford and immediately borrowed and issued a senior secured note for $5.0 million. The note carried a fixed interest rate of 12.04%, with interest–only payments due for the first nine months and then equal principal and interest payments for an additional 30 months. In March 2011, the Company amended its growth capital facility with Oxford, which extended the availability of borrowing an additional $5.0 million through September 30, 2011 without incurring additional upfront facility fees and modified the covenant compliance requirements. In September 2011, the Company repaid the outstanding balance of the debt owed to Oxford using the proceeds received from the Credit Agreement as discussed in further detail above. The Company also accelerated and expensed the remaining closing cost and fees of $0.2 million to interest expense during the year ended December 31, 2011.