8. Debt

Debt consisted of the following (in thousands):


	March 30, 2012		December 31, 2011
Senior Credit Facility – term loan	$	10,000	$	10,000

Total current portion of long-term debt	$	10,000	$	10,000

Senior Credit Facility – term loan	$	27,500	$	30,000
Senior Credit Facility – revolving credit facility		18,000		28,000

Total long-term debt	$	45,500	$	58,000

Senior Credit Facility

The Company’s senior secured credit agreement (the “Credit Agreement”) provides for a $40.0 million, 4-year, term loan facility due in quarterly installments of $2.5 million beginning in January 2012 and a $40.0 million, 4-year, revolving credit facility (collectively, the “Senior Credit Facility”) that matures in 2015. The Credit Agreement also provides for an additional uncommitted $25.0 million incremental facility, subject to the satisfaction of certain customary covenants. The Company is required to pay a commitment fee on unused commitments ranging between 0.3% and 0.5% annually, based on the Company’s leverage ratio, as defined in the Credit Agreement. As of March 30, 2012, the Company is eligible to borrow the maximum $40.0 million under the revolving credit facility, of which $18.0 million was outstanding.

The Credit Agreement contains various customary representations, warranties and covenants applicable to the Company and its subsidiaries, including, without limitation, (i) covenants regarding maximum leverage ratio, minimum EBITDA (as defined in the Credit Agreement), and minimum fixed charge coverage ratio; (ii) limitations on dividend payments and stock repurchases; (iii) limitations on fundamental changes involving the Company or its subsidiaries; (iv) limitations on the disposition of assets and; (v) limitations on indebtedness, investments, restricted payments and liens. In addition, the minimum EBITDA covenant and the borrowing base are in effect until December 31, 2012, subject to satisfaction of specific financial criteria. The Company is in compliance with these covenants as of March 30, 2012.

Deferred Financing Costs

In connection with the execution of the Senior Credit Facility, the Company capitalized $3.0 million in deferred financing costs. The Company allocated these costs evenly between the two debt facilities and amortizes the costs using the effective interest method for the term loan facility (which requires quarterly principal repayments) and on a straight-line basis for the revolving credit facility, which is due at maturity in 2015. Non-cash interest expense related to the amortization of the deferred financing costs under the Senior Credit Facility for the three months ended March 30, 2012 was $0.3 million. Unamortized deferred financing costs totaled $2.5 million, of which $0.3 million is included in prepaid expenses and other current assets and $2.2 million is included in other assets in the accompanying consolidated balance sheet as of March 30, 2012.

In connection with the issuance of the 12.25% Senior Secured PIK Election Notes (“2014 Notes”) in July 2010, the Company capitalized $1.6 million in deferred financing costs. These deferred financing costs were amortized to interest expense on a straight-line basis over the initial four year contractual term of the 2014 Notes based on the outstanding principal balance. Non-cash interest expense related to the amortization of deferred financing costs under the 2014 Notes for the three months ended April 1, 2011 was $0.1 million. The Company wrote off all remaining unamortized deferred financing costs during the fourth quarter of 2011 upon extinguishment of the 2014 Notes.

Interest Expense

The interest rates on the term loan and revolving credit facility were 3.32% and 2.99%, respectively, at March 30, 2012. The weighted average interest rate for the term loan was 3.29% at March 30, 2012. Interest expense for the three months ended March 30, 2012 was $0.5 million on the Senior Credit Facility.

Interest expense on the 2014 Notes for the three months ended April 1, 2011, was $3.6 million. Interest expense included PIK interest of $0.3 million related to an additional 2% assessment per annum, which ceased in February 2011.

Fair Value of Debt

As of March 30, 2012 and December 31, 2011, the outstanding balance of the Company’s Senior Credit Facility of $55.5 million and $68.0 million, respectively, approximated fair value based on current rates available to the Company for debt of the same maturity, and is therefore classified as Level 2 within the valuation hierarchy.