DEBT AND CAPITAL LEASE OBLIGATIONS

Debt at December 31, 2011 and 2010 is summarized in the following table (in thousands):



	December 31, 2011		December 31, 2010
Exchangeable Notes	$	—	$	156,407
Discount on Exchangeable Notes	—		(8,864		)
Net Exchangeable Notes	—		147,543
Senior Notes	150,000		—
Credit facility	73,000		—
Capital lease obligations	132		—
Other indebtedness	2,287		—
Total debt	225,419		147,543
Less - current maturities of long-term debt and capital lease obligations	2,344		147,543
Long-term debt and capital lease obligations, net	$	223,075	$	—

In 2006, Core Laboratories LP, an entity 100% indirectly owned by Core Laboratories N.V., issued $300 million aggregate principal amount of Senior Exchangeable Notes (the "Exchangeable Notes") which were fully and unconditionally guaranteed by Core Laboratories N.V. and fully matured on October 31, 2011. The Exchangeable Notes bore interest at a rate of 0.25% per year paid on a semi-annual basis.

With the amortization of the discount on the Exchangeable Notes, the effective interest rate was 7.48% for the years ended December 31, 2011, 2010 and 2009 which resulted in additional, non-cash, interest expense of $5.5 million, $14.9 million and $14.5 million for the years ended December 31, 2011, 2010 and 2009, respectively. Each Exchangeable Note carried a $1,000 principal amount and was exchangeable into shares of Core Laboratories N.V. common stock under certain circumstances whereby holders received cash for the principal amount plus any amount related to fractional shares, and any excess exchange value was delivered in whole shares of Core Laboratories N.V. common stock at the completion of the valuation period as defined under our Exchangeable Note Indenture agreement. At December 31, 2010, the Exchangeable Notes were trading at 197% of their face value which was equivalent to $151.7 million of value in excess of the aggregate principal amount. There were 156,407 Exchangeable Notes outstanding at December 31, 2010. All of these Exchangeable Notes were early exchanged or reached maturity during 2011.

Under the terms of the Exchangeable Notes, defined criteria were met which allowed the Exchangeable Notes to be early exchanged during each quarter of 2011. We received 142 requests to exchange 156,301 Exchangeable Notes which were settled during the year for $156.3 million in cash and 1,851,869 shares of our common stock, all of which were treasury shares, resulting in a loss of $1.0 million.

In September 2011, we issued two series of senior notes with an aggregate principal amount of $150 million ("Senior Notes") in a private placement transaction. Series A consists of $75 million in aggregate principal amount of notes that bear interest at a fixed rate of 4.01% and are due in full on September 30, 2021. Series B consists of $75 million in aggregate principal amount of notes that bear interest at a fixed rate of 4.11% and are due in full on September 30, 2023. Interest on each series of the Senior Notes is payable semi-annually on March 30 and September 30.

We maintain a credit facility (the "Credit Facility") with an aggregate borrowing capacity of $300 million. The Credit Facility provides an option to increase the commitment under the Credit Facility to $350 million, if certain conditions were met. The Credit Facility bears interest at variable rates from LIBOR plus 1.50% to a maximum of LIBOR plus 2.25%. Any outstanding balance under the Credit Facility is due September 28, 2016 when the Credit Facility matures. Interest payment terms are variable depending upon the specific type of borrowing under this facility. Our available capacity at any point in time is reduced by borrowings outstanding at the time and outstanding letters of credit and performance guarantees and bonds which totaled $15.3 million at December 31, 2011, resulting in an available borrowing capacity under the Credit Facility of $211.7 million. In addition to those items under the Credit Facility, we had $11.7 million of outstanding letters of credit and performance guarantees and bonds from other sources at December 31, 2011.

Cash interest expense was $2.3 million, $0.6 million and $0.6 million for the years ended December 31, 2011, 2010 and 2009, respectively.

The terms of the Credit Facility and Senior Notes require us to meet certain financial covenants, including, but not limited to, certain operational and minimum equity and cash flow ratios. We believe that we are in compliance with all such covenants. Certain of our material wholly owned subsidiaries are guarantors or co-borrowers under the Credit Facility and Senior Notes.

Other indebtedness includes approximately $2.3 million of debt incurred relating to the financing of our corporate insurance.