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Long-Term Debt

Long-term debt consists of the following (in thousands):


	December 31,
	2011		2010

Credit Facility	$	10,000	$	—
Former Revolving Credit Agreement		—		10,000
Former Senior notes		—		13,305


		10,000		23,305
Less current portion		—		2,000


	$	10,000	$	21,305

On May 12, 2011, the Company entered into a new credit facility (Credit Facility) providing total availability up to $50,000,000 that supports short-term funding needs and letters of credit, which replaced the Company's Revolving Credit Agreement and Senior Notes scheduled to expire in January 2012. Loans made under the Credit Facility will mature and the commitments thereunder will terminate in May 2016. The Credit Facility provides for an option, subject to certain conditions, to increase total availability to $60,000,000 in the future. Borrowing availability under the Credit Facility is determined by a monthly borrowing base collateral calculation that is based on specified percentages of the value of eligible accounts receivable, inventory and machinery and equipment, less certain reserves and subject to certain other adjustments.

Obligations under the Credit Facility are guaranteed by all of our U.S. subsidiaries and are secured by a first priority lien on substantially all domestic assets of the Company.

The financial covenants in our Credit Facility require us to achieve certain financial covenants regarding cumulative quarterly fixed charge coverage ratios. The Credit Facility also contains a number of covenants that, among other things, limit or restrict our ability to dispose of assets, incur additional indebtedness, incur guarantee obligations, engage in sale and leaseback transactions, prepay other indebtedness, modify organizational documents and certain other agreements, create restrictions affecting subsidiaries, make dividends and other restricted payments, create liens, make investments, make acquisitions, engage in mergers, change the nature of our business and engage in certain transactions with affiliates.

At December 31, 2011, the Company had total availability for borrowings and letters of credit under the Credit Facility of $24,848,000 along with an unrestricted cash balance of $18,173,000 which provides for total cash and borrowing capacity of $43,021,000. Approximately $7,282,000 of the unrestricted cash balance relates to the Company's Mexican subsidiaries. Standby letters of credit up to a maximum of $5,000,000 may be issued under the Credit Facility of which $990,000 and $1,886,000 were issued at December 31, 2011 and 2010, respectively.

The weighted average interest rate for outstanding borrowings at December 31, 2011 was 3.0%. The weighted average interest rates for borrowings during the years ended December 31, 2011 and 2010 were 5.6% and 9.3%, respectively. Interest incurred during the years ended December 31, 2011 and 2010 totaled approximately $1,881,000 and $2,458,000, respectively. The Company had no capitalized interest in 2011 or 2010. Interest paid during the years ended December 31, 2011 and 2010 totaled approximately $1,100,000 and $1,922,000, respectively.