Debt Obligations

9 Months Ended

Sep. 30, 2011

Debt Obligations [Abstract]

Debt Obligations

NOTE 7: DEBT OBLIGATIONS

Debt obligations consisted of the following:

	September 30,		September 30,
		2011		2010
Long-term debt (current maturities) :
CoBank ACB, unsecured term credit facility	$	1,519	$	2,658
Short-term debt:
Cobank ACB promissory note		5,000		-
Provident Bank credit line		4,000		-
		9,000		-
Total debt obligations	$	10,519	$	2,658

Long-term debt:

As of September 30, 2011, $1,519 in principal amount was outstanding under the CoBank, ACB term credit facility. The final payment is due July 20, 2012.   We are required to make interest and outstanding principal payments in quarterly installments under the CoBank, ACB term credit facility.  The interest rate on the outstanding amount is variable and as of September 30, 2011 the rate was 2.87%. 

Short-term borrowings:

On August 3, 2011, the Company entered into a supplement to our master loan agreement with CoBank, ACB.  The supplement provides for a revolving loan facility in the principal amount of $5,000 (the "CoBank Revolving Loan").  Also on August 3, 2011, the Company drew down the entire $5,000 principal amount of the CoBank Revolving Loan to fund a portion of the purchase price of the Alteva acquisition.  The CoBank Revolving Loan becomes due and payable on August 2, 2012.  The CoBank Revolving Loan incurs interest at a variable rate determined by CoBank, ACB or, if selected by the Company, at LIBOR plus 3.50%.  Interest is payable quarterly in arrears.  The interest rate on the outstanding amount is variable and, as of September 30, 2011, the rate was 3.75%.  The Company paid CoBank, ACB a $50 origination fee in connection with the CoBank Revolving Loan.   Under the terms of the CoBank revolving loan, the Company is required to comply with certain loan covenants, which include, but are not limited to, the achievement of certain financial ratios, as set forth in the agreement, as well as certain financial reporting requirements.  As of September 30, 2011, the Company was in compliance with all loan covenants.

The Company has an unsecured line of credit in the amount of $4,000 with Provident Bank (the "Bank") and on August 1, 2011, the Company drew down its entire $4,000 line of credit with Provident Bank.  The Bank line of credit becomes due and payable on July 31, 2012.   Pursuant to the terms of the Alteva Agreement, the proceeds from this line of credit were deposited in an escrow account, of which, $3,351 is expected to be returned to the Company.   Any borrowings under this line of credit are on a demand basis without restrictions, and at a variable lending rate.  The interest rate on the outstanding amount is variable and as of September 30, 2011 the rate was 2.5% and the Company was in compliance with all loan covenants. The Company had no outstanding balance on this facility at December 31, 2010.