Long-term Debt

12 Months Ended

Dec. 31, 2011

6. Long-term debt

Long-term debt consisted of the following:

	(in thousands)
	December 31, 2011			December 31, 2010
Borrowings under credit facility	$	19,888		$	5,689
Notes payable		7,989			-
Capitalized lease obligations		2,848			-
Total long-term debt		30,725			5,689
Less: Current maturities		(1,936	)		-
Total maturities due after one year	$	28,789		$	5,689

As of December 31, 2011, the Company had a secured committed credit facility with an aggregate availability of $50.0 million that matures in March 2015. At December 31, 2011, borrowing base availability under the credit facility was $46.8 million, $19.9 million was borrowed and $3.0 million of standby letters of credit, which are used primarily for our self-insurance programs and legal matters, were issued. This reduced the availability under our credit facility to $23.9 million As of December 31, 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%. Interest expense on the Credit Facility for the year ended December 31, 2011, 2010 and 2009 was $577,000, $58,000 and $30,000, respectively.

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. These covenants provide various guidelines and/or restrictions related to inspections, financial information, notices, insurance, subsidiaries, permitted debt and permitted liens. The credit facility calls for the Applicable Margin to be determined by the fixed charge ratio for the end of the quarter prior to the current quarter as defined in the Loan and Security Agreement. This provision was effective in the fourth quarter of 2011 as the margins remained at Level II until September 30, 2011, per the credit facility; however, the Applicable Margin priced under Level III did not have a material impact on our financial statements. As of December 31, 2011, we were in compliance with the covenants under the credit facility and anticipate our compliance will continue throughout 2012.

During the second half of 2011 and in the normal course of business, the Company chose to enter into various master security agreements and a capital lease agreement to finance the purchase of revenue equipment at more favorable rates than through off-balance sheet operating losses. The master security agreements provide for funding structured as promissory notes. The Company entered into these master security agreements to finance the purchase of $8.5 million of revenue equipment. 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. Interest expense related to our notes payable and capital lease obligation for the year ended December 31, 2011 was $189,000.