LONG-TERM DEBT AND CREDIT ARRANGEMENTS

Long-term debt consists of the following:



	2011			2010
Senior indebtedness:
Current revolving credit facilities	$	52,806		$	—
Prior revolving credit facilities	—			30,503
Term loan	—			11,324
Total senior indebtedness	52,806			41,827
Convertible subordinated debentures	—			12,162
Mortgage note payable	10,878			5,736
Equipment notes payable	3,354			4,220
Notes payable	584			460
Capital lease obligations	464			810
Total long-term debt	68,086			65,215
Less: current portion of long-term debt	(2,729		)	(7,145		)
Total long-term debt, less current portion	$	65,357		$	58,070

Senior indebtedness

On September 14, 2011, the Company terminated its amended and restated senior loan and security agreement (the "terminated facility"). At the time of termination, the facility provided the Company with $65,000 of revolving credit and a term loan with a principal balance of $10,194. The terminated facility was originally set to mature on May 11, 2013.

On September 14, 2011, the Company entered into a new five-year, secured revolving credit facility (the "senior credit facility"). The senior credit facility provides for a maximum of $90,000 of revolving credit, subject to borrowing base availability, including limited amounts of credit in the form of letters of credit and swingline loans. The borrowing base is equal to specified percentages of the Company's eligible accounts receivable, inventories and fixed assets less reserves established, from time to time, by the administrative agent under the senior credit facility.

At the Company's election, revolving loans under the senior credit facility bear interest at annual rates equal to either (a) LIBOR for 1, 2 or 3 month periods, as selected by the Company, plus an applicable margin of either 2.00% or 2.25%, or (b) the higher of the prime rate, the Federal Funds rate plus 0.5%, or a daily LIBOR rate, plus an applicable margin of either 1.00% or 1.50%. The applicable margin is determined based on availability under the senior credit facility with margins increasing as availability decreases. The weighted-average interest rate on borrowings outstanding under this agreement was 3.76% at December 31, 2011 and was 4.00% at December 25, 2010 under the terminated facility. The Company also pays an unused line fee on the average amount by which the aggregate commitments exceed utilization of the senior credit facility equal to 0.375% per annum.

The senior credit facility includes certain affirmative and negative covenants that impose restrictions on the Company's financial and business operations, including limitations on debt, liens, investments, fundamental changes in the Company's business, asset dispositions, dividends and other similar restricted payments, transactions with affiliates, payments and modifications of certain existing debt, future negative pledges, and changes in the nature of the Company's business. The Company is also required to maintain a fixed charge coverage ratio of 1.1 to 1.0 during any period that borrowing availability is less than $10,000.

The Company can use the proceeds of the senior credit facility for general corporate purposes, including financing acquisitions and refinancing other indebtedness. As of December 31, 2011, the unused borrowing availability under the senior credit facility was $25,680.

Convertible Subordinated Debentures

On October 5, 2011, the Company optionally redeemed all of the outstanding 7.00% convertible subordinated debentures pursuant to the provisions of the Indenture dated May 15, 1987. The debentures were originally set to mature on May 15, 2012. The redemption price of $9,925 represented 100% of the principal amount of the debentures plus accrued and unpaid interest. The principal balance at October 5, 2011 was $9,662. The debentures were convertible by their holders into shares of the Company's Common Stock at an effective conversion price of $32.20 per share. No holders exercised their right to convert their debentures into shares of the Company's Common Stock.

Mortgage Note Payable

On September 13, 2011, the Company terminated its existing $5,508 mortgage loan which would have matured on March 1, 2013 and entered into a new five-year $11,063 mortgage loan (the "mortgage loan"). The mortgage loan is secured by the Company's Susan Street facility and liens second to the senior credit facility. The mortgage loan is scheduled to mature on September 13, 2016. The mortgage loan bears interest at a variable rate equal to one month LIBOR plus 3.00% and is payable in equal monthly installments of principal of $61, plus interest calculated on the declining balance of the mortgage loan, with a final payment of $7,436 due on maturity.

Deferred Financing Costs and Refinancing Expenses

As a result of the refinancing, the Company paid $1,357 in financing costs that will be amortized over the term of the senior credit facility and the mortgage loan. In addition, the Company recognized $317 of refinancing expenses of which $92 related to the write-off of previously deferred financing costs and $225 related to fees paid to 3rd parties in connection with the new senior credit facility and mortgage loan.

Equipment Notes Payable

The terms of the Company's equipment financing notes are as follows:



Instrument	Interest Rate		Term (Months)	Monthly Installments of Principal and Interest		Maturity Date
Note Payable - Equipment	6.63	%	84	$	24	August 15, 2012
Note Payable - Equipment	6.83	%	84	23		February 1, 2013
Note Payable - Equipment	6.85	%	84	38		May 1, 2014
Note Payable - Equipment	7.72	%	48	2		June 1, 2014
Note Payable - Equipment	2.00	%	60	38		August 1, 2016

The Company's equipment financing notes are secured by the specific equipment financed and do not contain any financial covenants.

Capital Lease Obligations

The terms of the Company's capitalized lease obligations are as follows:



Instrument	Interest Rate		Term (Months)	Monthly Installments of Principal and Interest		Maturity Date
Capital Lease - Equipment	7.04	%	84	$	8	December 1, 2015
Capital Lease - Equipment	7.72	%	48	4		June 1, 2014

The Company's capitalized lease obligations are secured by the specific equipment leased.

Interest Payments and Debt Maturities

Interest payments for continuing operations were $3,338 in 2011, $4,006 in 2010, and $5,379 in 2009. Maturities of long-term debt for periods following December 31, 2011 are as follows:



	Long-Term Debt		Capital Leases		Total
	Long-Term Debt		(See Note M)		Total
2012	$	2,614	$	115	$	2,729
2013	1,693		124		1,817
2014	1,396		111		1,507
2015	1,185		114		1,299
2016	60,734		—		60,734
Thereafter	—		—		—
Total	$	67,622	$	464	$	68,086