Long-term Debt

3 Months Ended

Mar. 31, 2012

3. Long-term Debt

Long-term debt consisted of the following:

	(in thousands)
	March 31, 2012			December 31, 2011
Borrowings under credit facility	$	24,241		$	19,888
Notes payable		7,642			7,989
Capitalized lease obligations		2,760			2,848
Total long-term debt		34,643			30,725
Less: Current maturities		(1,993	)		(1,936	)
Total maturities due after one year	$	32,650		$	28,789

As of March 31, 2012, the Company had a secured committed credit facility with an aggregate availability of $50 million that matures in March 2015. At March 31, 2012, the borrowing base availability under the credit facility was $44.5 million, $24.2 million was borrowed and $5.2 million of standby letters of credit were issued, which are used primarily for our self-insurance programs and legal matters. These reduced the availability under our credit facility to $15.1 million. The reduction in gross availability of $2.3 million during the three month period ended March 31, 2012 was due to the decline in accounts receivable at the end of the quarter. This was a direct result of a decline in revenue during the quarter, primarily connected to the exit of dry van services and the related reduction in truck count, which also negatively impacted the Company’s revenues from its temperature controlled truckload offerings. Based on our accounts receivable balance at March 31, 2012, and considering our current trends, we anticipate an increase in the borrowing base to the full amount allowed under the credit facility by the third quarter of 2012. As of March 31, 2012, loans outstanding under the credit facility were categorized as either LIBOR loans, which had an interest rate of 2.8%, or bank base rate loans which had an interest rate of 4.8%.

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.

In the normal course of business, the Company has chosen 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 effective interest rates on the promissory notes range from 5.5% to 7.6%. 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.