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Debt

6 Months Ended

Jun. 30, 2012

5. DEBT

Our long-term debt, as of June 30, 2012 and December 31, 2011, was as follows (in thousands):


	June 30, 2012			December 31, 2011
Credit Agreement:
Term loan, mandatory principal payments during term, with remaining principal balance due December 2015, interest at adjusted LIBOR plus 3.75% (combined rate of 4.22% at June 30, 2012 and 4.30% at December 31, 2011)	$	173,000		$	190,000

$100 million revolving loan facility, due December 2015, interest at adjusted LIBOR plus applicable margin		—			—

Convertible Debt Securities:
2010 Convertible Notes – senior subordinated convertible notes; due March 1, 2017; cash interest at 3.0%; net of unamortized original issue discount (“OID”) of $27,827 and $30,256, respectively		122,173			119,744

		295,173			309,744
Current portion of long-term debt, net		(18,000	)		(27,000	)

Total long-term debt, net	$	277,173		$	282,744

Credit Agreement. During the six months ended June 30, 2012, we made $17.0 million of principal repayments, of which $10 million was mandatory repayments and $7.0 million was voluntary repayments that can be applied to future mandatory repayments.

As of June 30, 2012, we were in compliance with the financial ratios and other covenants related to the Credit Agreement. As of June 30, 2012, we had no borrowings outstanding on our revolving loan facility and had the entire $100 million available to us.

2010 Convertible Notes. As of June 30, 2012, and as it relates to our 2010 Convertible Notes, none of the contingent conversion features have been achieved, and thus, the 2010 Convertible Notes are not convertible by the holders.

Upon conversion of the 2010 Convertible Notes, we will settle our conversion obligation as follows: (i) we will pay cash for 100% of the par value of the 2010 Convertible Notes that are converted; and (ii) to the extent the value of our conversion obligation exceeds the par value, we will satisfy the remaining conversion obligation in our common stock, cash or any combination of our common stock and cash. As of June 30, 2012, the value of our conversion obligation did not exceed the par value of the 2010 Convertible Notes.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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