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Secured Credit Facility
6 Months Ended
Jun. 30, 2012
Secured Credit Facility [Abstract]  
Secured Credit Facility

Note 4 – Secured Credit Facility

 

We have a credit facility with CoBank, ACB. Under the credit facility, we entered into separate Master Loan Agreements (MLAs) and a series of supplements to those respective MLAs.

 

NU Telecom and its respective subsidiaries also have entered into security agreements under which substantially all of the assets of NU Telecom and its respective subsidiaries have been pledged to CoBank, ACB as collateral. In addition, NU Telecom and its respective subsidiaries have guaranteed all obligations under the credit facility.

 

 

As of June 30, 2012, we were in compliance with the financial ratios in our loan agreements.

 

As described in Note 5 – "Interest Rate Swaps," we have entered into interest rate swaps that effectively fix our interest rates and cover $36.0 million at a weighted average rate of 5.52%, as of June 30, 2012. The additional $11.9 million of outstanding debt ($4.2 million available under the credit facilities and $7.7 million currently outstanding) remains subject to variable interest rates at an effective weighted average interest rate of 2.26%, as of June 30, 2012.