Debt Obligations

12 Months Ended

Dec. 31, 2013

Debt Obligations [Abstract]

Debt Obligations

NOTE 11: DEBT OBLIGATIONS

Debt obligations consisted of the following at December 31:

		As of December 31,
($ in thousands)		2013		2012
Short-term debt:
Capital leases and other borrowings, current portion	$	428	$	-
TriState credit line		9,698		-
		10,126		-
Long-term debt:
Capital leases and other borrowings		297		-
CoBank ACB revolving loan facility		-		8,595
Provident Bank credit line		-		4,000
TriState credit line		-		1,500
		297		14,095
Total debt obligations	$	10,423	$	14,095

On March 11, 2013, the Company entered into a new credit agreement with TriState Capital Bank ("TriState") to provide for borrowings up to $17.0 million with the ability to increase the facility for borrowings up to $20.0 million with the participation of another lender (the "Credit Agreement"). All borrowings become due and payable on June 30, 2014. The TriState borrowings incur interest at a variable rate based on either LIBOR or a Base Rate, as defined in the Credit Agreement, plus an applicable margin of 3.50% or 2.00%, respectively. For the year ended December 31, 2013, the effective interest rate on the TriState credit facility was approximately 3.7%. As of December 31, 2013, the Company had $7.3 million available under the Credit Agreement.

Under the terms of the Credit Agreement, the Company is required to comply with certain loan covenants, which include, but are not limited to, the achievement of certain financial ratios and certain financial reporting requirements. The Company must maintain a consolidated liquidity ratio, as defined in the Credit Agreement, in excess of 1.0 to 1.0, including the value of the Put calculated in accordance with the 4G Agreement, until April 30, 2014. The Company is required to obtain the consent of TriState prior to agreeing to any amendment to the agreements the Company has with the O-P. The Company's obligations under the TriState credit facility are secured by all of the Company's asset and guaranteed by all of the Company's wholly-owned subsidiaries except for the Company's ILEC subsidiary. The ILEC subsidiary entered into a negative pledge agreement with TriState whereby the ILEC subsidiary agreed not to pledge any of its assets as collateral or lien to be placed on any of its assets.

The Company currently intends to exercise the Put option in April 2014 (see Note 10). A portion of the proceeds of the Put will be used repay the outstanding debt under the TriState credit facility.

As of December 31, 2012, the Company had three debt facilities. The Company had a revolving loan facility with CoBank, ACB ("CoBank") for $10.0 million with an interest rate (payable quarterly in arrears) at LIBOR plus 4.50%. The interest rate on the outstanding balance under the revolving loan facility with CoBank as of December 31, 2012 was 4.71%. The Company had an unsecured line of credit with Provident Bank ("Provident") of $4.0 million of which the entire amount had been drawn down at December 31, 2012. The interest rate (payable monthly in arrears) on the Provident unsecured line of credit was fixed at 2.50%. The Company had a credit agreement with TriState that provided for borrowings up to $2.5 million, with a variable interest rate based on either LIBOR or a Base Rate, as defined in the Company's credit agreement with TriState, plus an applicable margin 4.0% or 3.0%, respectively. On March 11, 2013, the Company borrowed $15.2 million to repay all borrowings outstanding under the CoBank, Provident and prior TriState credit facilities and retired those facilities.