Debt

9 Months Ended

Sep. 30, 2012

Debt [Abstract]

DEBT

7. DEBT

Long-term debt consists of the following (in thousands):

	September 30, 2012		December 31, 2011
Convertible notes	$	—	$	91,875
Less unamortized debt discount		—		(5,450	)
		—		86,425
Less current portion		—		(86,425	)
Total long-term debt	$	—	$	—

The Company’s outstanding debt consists of a revolving credit facility.

Revolving Credit Facility. On January 6, 2012, the Company entered into an Amended and Restated Credit Agreement (the “Revolving Credit Facility”) with BB&T, Wells Fargo Capital Finance, LLC and BB&T Capital Markets (the “Lenders”). Under the Amended Credit Agreement, the Lenders agreed to provide the Company with one or more revolving loans in a collective maximum principal amount of $100,000,000. The Revolving Credit Facility replaces the previous revolving credit facility in its entirety. Amounts drawn under the Revolving Credit Facility are subject to a borrowing base consisting of certain accounts receivables, inventories, machinery and equipment and real estate.

At September 30, 2012, the Company had $2.0 million of outstanding borrowings under its revolving credit facility and additional available borrowing capacity of approximately $59.3 million.

Convertible Notes Offering. On July 2, 2012 the Company repaid the $91.9 million principal balance on the notes and, in accordance with the conversion feature of the notes, issued 1,061,745 shares of common stock to the note-holders.

Interest expense relating to the Company’s convertible notes for the three and nine months ended September 30, 2012 and 2011 is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Interest expense at coupon rate (6.0%)	$	—	$	1,422	$	2,756	$	4,347
Non-cash interest in accordance with ASC 470		—		2,488		5,450		7,133
Total interest expense recognized on convertible debt instruments	$	—	$	3,910	$	8,206	$	11,480

Compliance with Debt Covenants and Restrictions. The Company’s ability to make scheduled principal and interest payments and to borrow and repay amounts under any outstanding revolving credit facility, and continue to comply with any loan covenants depends primarily on the Company’s ability to generate sufficient cash flow from operations.

As of September 30, 2012, the Company was in compliance with all of the covenants contained in its debt agreements. Failure to comply with the loan covenants might cause lenders to accelerate the repayment obligations under the credit facility, which may be declared payable immediately based on a default.