Long-term Debt

9 Months Ended

Sep. 30, 2011

3. Long-term Debt

Long-term debt consisted of the following:

	(in thousands)
	September 30, 2011			December 31, 2010
Borrowings under credit facility	$	28,352		$	5,689
Notes payable		6,601			-
Capitalized lease obligations		2,952			-
Total long-term debt		37,905			5,689
Less: Current maturities		(1,407	)		-
Total maturities due after one year	$	36,498		$	5,689

As of September 30, 2011, the Company had a secured committed credit facility with an aggregate availability of $50 million that matures in March 2015. At September 30, 2011, $28.4 million was borrowed under the credit facility and $4.0 million of standby letters of credit were issued under the credit facility, which are used primarily for our self-insurance programs and legal matters, reducing the availability under our credit facility to $17.6 million. As of September 30, 2011, loans outstanding under the credit facility were categorized as either LIBOR loans, which had an interest rate of 2.5%, or bank base rate loans which had an interest rate of 4.5%.

The obligations under the credit facility are guaranteed by our parent company and certain named subsidiaries and secured by a pledge of substantially all of our assets. The obligations shall bear interest (i) if a Base Rate Loan (as defined in the credit facility), at the Base Rate (as defined in the credit facility) in effect from time to time, plus the Applicable Margin (as defined in the credit facility); (ii) if a LIBOR loan, at LIBOR for the applicable interest period, plus the Applicable Margin; and (iii) if any other obligation (including, to the extent permitted by law, interest not paid when due), at the Base Rate in effect from time to time, plus the Applicable Margin for Base Rate Revolver Loans (as defined in the credit facility). Interest shall accrue from the date the Loan is advanced or the obligation is incurred or payable, until paid by the borrowers. If a loan is repaid on the same day made, one day's interest shall accrue. We are obligated to comply with certain covenants under the credit facility.

During the third quarter of 2011 and in the normal course of business, the Company chose to enter into various master security agreements and a capital lease agreement as a different option from off-balance sheet operating leases to finance the purchase of revenue equipment at more favorable rates. The master security agreements provide for funding structured as promissory notes. The Company entered into these master security agreements to finance $6.7 million of revenue equipment in the third quarter of 2011. The effective interest rates on the promissory notes range from 5.5% to 6.4%. The capital lease obligation for approximately $3.0 million of revenue equipment is structured as a 60- month rental agreement with a fixed price purchase option. The effective interest rate on the lease is approximately 6.8%. The capital lease agreement requires us to pay personal property taxes, maintenance, and operating expenses.