6. Long-term Debt and Other Financing Arrangements

Capital Leases

In November 2010, the Company increased its lease financing arrangement with Banc of America Leasing & Capital, LLC to $15.0 million. This arrangement was established to allow the Company to lease new software, hardware and other computer equipment as it expands its technology infrastructure in support of its business growth. Future minimum payments under capital leases with initial terms of one year or more are as follows:


	(In
	thousands)
2011	$	2,880
2012		5,918
2013		4,612
2014		444
2015		5

Total minimum lease payments		13,859
Less amount representing interest		(767	)

Present value of net minimum lease payments		13,092
Less current portion		(5,423	)

Capital lease obligations, long-term	$	7,669

During the six months ended June 30, 2011 and 2010, the Company acquired $2.8 million and $5.5 million, respectively, in computer equipment through the issuance of capital leases.

Secured Revolving Credit Facility

On June 30, 2011, the Company entered into a secured credit and security agreement (the “Credit Agreement”) with Bank of America, N.A. (“Bank of America”) for a two-year, $50.0 million secured revolving credit facility (the “Revolving Credit Facility”). The agreement includes a maximum $7.0 million sublimit for a euro loan facility and a $10.0 million sublimit for the issuance of letters of credit. The maturity date of the Revolving Credit Facility is June 30, 2013. Borrowings under the Revolving Credit Facility shall be used towards working capital and other general corporate purposes as well as for the issuance of letters of credit. Loans made under the Revolving Credit Facility will bear interest at a fluctuating rate based on the London Interbank Offered Rate (“LIBOR”) plus an applicable margin, which will range from 1.75% to 2.75%, based on the company’s funded debt ratio.

On June 30, 2011, the Company and each of the Company’s material, wholly-owned subsidiaries entered into a Security Agreement in favor of Bank of America (the “Security Agreement”). Pursuant to the Security Agreement, the obligations under the Revolving Credit Facility are secured by a security interest in substantially all of the Company’s assets.

Under the terms of the Revolving Credit Facility, the Company is restricted from paying dividends and incurring certain indebtedness, among other restrictive covenants. The Company continues to be in full compliance with all covenants contained in the Revolving Credit Facility.

As of August 4, 2011, no amounts are outstanding under the terms of the Company’s Revolving Credit Facility.

The Company maintains letters of credit in lieu of security deposits with respect to certain office leases. During the three months ended June 30, 2011, one letter of credit was reduced by approximately $0.2 million. The reduction will be effective as of July 1, 2011. As of June 30, 2011, $3.1 million in letters of credit were outstanding, leaving $6.9 million available for additional letters of credit. These letters of credit may be reduced periodically provided the Company meets the conditional criteria of each related lease agreement.