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Debt
12 Months Ended
Dec. 31, 2011
Debt

Note 3 - Debt

 

Loan Payable

 

In February 2009, the Company entered into a $30.0 million line of credit with Regions Bank, secured by substantially all assets of the Company, which provided for interest at LIBOR plus 1 1/2% with a minimum of 3%, and the maintenance of certain financial covenants. As of December 31, 2009, the company was in violation of the debt to earnings ratio covenant and obtained a waiver of this violation as of March 15, 2010 which modified the interest rate to LIBOR plus 2 1/2% with a minimum of 3.5%, returning to the original interest rate when compliance with the covenant was achieved. Compliance with the debt to earnings ratio was achieved in the third quarter of 2010. In April 2011, the line of credit was increased to $35 million, the maturity date was extended to June 2014, and the interest rate was modified to LIBOR plus from 1.75% to 2.25% based upon a debt to earning ratio covenant, as defined. At December 31, 2011, we had a balance outstanding of $16,273,000 pursuant to the line of credit at an interest rate of LIBOR plus 2.00% (2.295% as of December 31, 2011). This rate was further reduced to LIBOR plus 1.75% in March 2012.