Debt and Other Financing Arrangements

3 Months Ended

Mar. 31, 2016

8.	Debt and Other Financing Arrangements

On March 20, 2014, the Company entered into an equipment financing arrangement (“Loan Agreement”) with Banc of America Leasing & Capital, LLC, which it amended on September 15, 2015. The terms of this arrangement are detailed in the 10-K.

On March 23, 2016, under the Loan Arrangement, the Company executed a note in the amount of $609 thousand, for total borrowings of $8.7 million. The weighted average interest rate for all notes related to the Loan Agreement for the quarter ended March 31, 2016 was 2.41%, and represented $34,631 of interest expense as compared to a rate of 2.17% and interest expense of $33,327 for the comparable period in 2015. As of March 31, 2016, the interest rate was 2.43% and there was $6.1 million of outstanding debt related to the loan. As of March 31, 2016, the Company had $0.1 million of debt financing available under the Loan Agreement. The Company was in compliance with all loan covenants as of March 31, 2016.

The annual principal repayment requirements for debt obligations as of March 31, 2016 were as follows (in 000’s):

2016	$	1,306
2017		1,742
2018		1,742
2019		990
2020		287
2021		30
Total long-term debt		6,097
Less current portion of long-term debt		(1,742)
Total long-term debt, net of current portion	$	4,355