8.DEBT OBLIGATIONS

Debt obligations consisted of the following (in thousands):

	September 30, 2015		December 31, 2014
Current Borrowings
Revolving Credit Facility	$	—	$	—
China Credit Facility (6.4% at September 30, 2015)	1,711		1,348
Term Loan, current portion, (2.2% at September 30, 2015) (1)	7,500		6,375

Current borrowings	$	9,211	$	7,723


Long-term Debt
Term Loan, noncurrent (2.2% at September 30, 2015) (1)	$	31,500	$	37,125
Subordinated Notes (14.5%, 13% Cash, 1.5% PIK)	30,000		30,000

Long-term debt	$	61,500	$	67,125

(1)

The effective rate of the Term Loan including the impact of the related hedges is 2.66%.

Credit Agreement

The Company’s Credit Agreement provides for a $15,000 five-year revolving credit facility and a $50,000 five-year term loan (collectively the “Senior Credit Facilities”).

Borrowings under the Senior Credit Facilities are subject to terms defined in the Credit Agreement. Borrowings bear interest at either the Base Rate plus a margin of 0.25% to 2.00% (currently 1.50%) or the Eurocurrency Rate plus a margin of 1.25% to 3.00% (currently 2.0%), in each case depending on the Company’s ratio of total funded indebtedness to Consolidated EBITDA (the “Total Leverage Ratio”).

Principal installments are payable on the Term Loan in varying percentages quarterly through September 30, 2018 with a balloon payment at maturity. The Senior Credit Facilities are secured by substantially all of the Company’s assets. The average outstanding borrowings for 2015 for the Senior Credit Facilities were $41,733. At September 30, 2015, there was approximately $15,000 available under the Senior Credit Facilities.

The Credit Agreement contains certain financial covenants related to maximum leverage and minimum fixed charge coverage. The Credit Agreement also includes other covenants and restrictions, including limits on the amount of certain types of capital expenditures. The Company was in compliance with all covenants at September 30, 2015.

Senior Subordinated Notes

Under the Company’s Note Agreement, the Company sold $30,000 of 14.50% Senior Subordinated Notes due October 18, 2019 (the “Notes”) to Prudential Capital Partners IV, L.P. and its affiliates in a private placement. The interest rate on the Notes is 14.50% with 13.00% payable in cash and 1.50% payable in-kind, quarterly in arrears and the outstanding principal amount of the Notes, together with any accrued and unpaid interest is due on October 18, 2019. The Company may prepay the Notes at any time after October 18, 2016, in whole or in part, at 100% of the principal amount. The Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed by certain of the Company’s subsidiaries.

Other

The Company has a China Credit Facility that provides credit of approximately $1,890 (Chinese Renminbi (‘‘RMB’’) 12,000). The China Facility is used for working capital and capital equipment needs at the Company’s China operations, and will mature in November, 2017. The average balance for 2015 was $1,680 (RMB 10,140). At September 30, 2015, there was approximately $180 (RMB 1,130) available under the facility.

Maturities of long-term debt as of September 30, 2015 are as follows (in thousands):

	Total
Remainder of 2015	$	3,586
2016	8,219
2017	10,374
2018	18,532
2019	30,000

Total	$	70,711