Revolving line of Credit

6 Months Ended

Jun. 30, 2012

Revolving line of credit [Abstract]

Revolving line of credit

F. Revolving line of credit

On August 2, 2007, we entered into a revolving line of credit with a bank syndicate led by Sovereign Bank (“Sovereign”) based on qualified TimePayment lease receivables. The total commitment under the facility was originally $30 million, and was subsequently increased to $60 million in July 2008, to $85 million in February 2009, and most recently to $100 million in July 2010. Outstanding borrowings are collateralized by eligible lease contracts and a security interest in all of our other assets.

In October 2011, the interest rate was lowered from Prime plus 1.25% or a London Interbank Offered Rate (“LIBOR”) plus 3.25% to Prime plus 0.75% or LIBOR plus 2.75%. Under the terms of the facility, loans are Prime Rate Loans, unless we elect LIBOR Loans. If a LIBOR Loan is not renewed at maturity it automatically converts to a Prime Rate Loan. As a part of the October 2011 amendment, the maturity date of the facility was extended to August 2, 2014. At our option upon maturity, the unpaid principal balance may be converted to a six-month term loan.

At June 30, 2012, $57.0 million of our loans were LIBOR loans and $11.5 million of our loans were Prime Rate Loans. The interest rate on our loans at June 30, 2012, was between 3.1% and 4.0%. The amount available on our revolving line of credit at June 30, 2012, was $31.5 million. The revolving line of credit has financial covenants that we must comply with to obtain funding and avoid an event of default. As of June 30, 2012, we were in compliance with all covenants under the revolving line of credit.