Revolving Line of Credit

12 Months Ended

Dec. 31, 2012

Debt Issue Costs / Revolving Line of Credit [Abstract]

Revolving Line of Credit

I. Revolving Line of Credit

At December 31, 2012 and 2011, our revolving line of credit was $70,380,000 and $62,740,000 at December 31, 2012 and 2011, respectively.

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, originally $30 million, has been increased at various times, most recently from $100 million to $150 million in December 2012. The December 2012 amendment would also permit further increases in the total commitment under an accordion feature, to $175 million, with the agreement of the Agent and, as applicable, a new or existing Lender, under certain conditions. Outstanding borrowings are collateralized by eligible lease contracts and a security interest in all of our other assets.

At December 31, 2012, we had approximately $70.4 million outstanding on our revolving line of credit facility, and had available borrowing capacity of approximately $79.6 million. The amount available is subject to limitations based on lease eligibility and a borrowing base formula. The revolving line of credit has financial covenants that we must comply with to obtain funding and avoid an event of default. As of December 31, 2012, we were in compliance with all covenants under the revolving line of credit.

The maturity date of our revolving line of credit is December 2016, at which time the outstanding loan balance plus interest becomes due and payable. At our option upon maturity, the unpaid principal balance may be converted to a six-month term loan.

The following is a chronology of the total commitment under the revolving credit facility with the associated rate options in effect during the three years ending December 31, 2012. As of December 31, 2012, the total commitment under the facility was $150 million.

Amendment Date	Total Commitment under Credit Facility (in millions)		Rate options (1)			Minimum Rate			Facility Expiration
February 2009	$	85	Prime plus 1.75%	or	LIBOR plus 3.75%		5.00	%	August 2010
July 2010		100	Prime plus 1.25%	or	LIBOR plus 3.25%		None		August 2013
October 2011		100	Prime plus 0.75%	or	LIBOR plus 2.75%		None		August 2014
December 2012		150	Base(2)  plus 0.75%	or	LIBOR plus 2.50%		None		December 2016

(1) 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.

(2) The “base rate” is the highest of the prime rate established by the Agent, or one-month LIBOR plus 1%, or the federal funds effective rate plus 0.5%.

At December 31, 2012, $65.0 million of our loans were LIBOR loans and $5.4 million of our loans were Base Rate Loans. The interest rate on our loans at December 31, 2012, was between 2.96% and 4.00%. As of December 31, 2012, the qualified lease receivables eligible under the borrowing base computation was approximately $130.8 million.