10. INDEBTEDNESS

Senior Secured Term Loan

On June 26, 2015, the Company entered into a credit and security agreement (the “Credit Agreement”) with MidCap Financial that provides a senior secured term loan of $20.0 million. Obligations under the Credit Agreement are secured by substantially all of the Company’s assets, excluding, without limitation, the Company’s intellectual property, certain equity interests relating to foreign subsidiaries and all assets owned by foreign subsidiaries, among others.

Borrowings under the Credit Agreement bear interest at a rate per annum equal to 7.75%, with only interest payments due through June 30, 2016. In addition to paying interest on the outstanding principal under the Credit Agreement, the Company will pay an origination fee equal to 0.50% of the amount of the term loan when advanced under the Credit Agreement, as well as a final payment fee equal to 2.00% of the amount borrowed under the Credit Agreement when the term loan is fully repaid. Commencing on July 1, 2016 and continuing for the remaining twenty-four months of the facility, the Company is required to make monthly principal payments of approximately $0.8 million.

The Company may voluntarily prepay outstanding loans under the Credit Agreement at any time, provided that the amount is not less than the total of all of the credit extensions and other related obligations under the Credit Agreement then outstanding. In the event of a voluntary prepayment, the Company is obligated to pay a prepayment fee equal to 2.95% of the outstanding principal of such advance if the prepayment is made within twelve months after the closing date, or 2.00% of the outstanding principal of such advance if the prepayment is made on or after the date that is twelve months after the closing date.

The Credit Agreement contains affirmative covenants that include government compliance, reporting requirements, maintaining property, making tax payments, maintaining insurance and cooperating during litigation. Additionally, the Company is required to maintain a minimum cash balance as collateral within its operating bank account with cash and cash equivalents of no less than the greater of the outstanding principal amount or $15.0 million. Negative covenants include restrictions on asset dispositions, acquisitions, indebtedness, liens, dividends and share purchases, amendments to material contracts and other restrictions.

The Credit Agreement includes customary events of default, including cross defaults, a change of control and a material adverse change. Additionally, the Company's failure to be compliant with the affirmative or negative covenants or make payments when they become due will result in an event of default.

The following table summarizes the components of the long-term debt recorded for the period indicated:

	As of December 31, 2016
	(in thousands)
Principal outstanding		15,000
Unamortized debt issuance costs		(223	)
Net carrying value of senior secured term loan		14,777

Long-term Mortgage Loans

The Company has two loans outstanding which bear interest at 4.75%, mature in February 2027 and are collateralized by the facility the Company owns in Corvallis, Oregon. At December 31, 2016, these loans had unpaid principal balances of $0.9 million and $0.5 million, for a total indebtedness of $1.4 million.

As of December 31, 2016, the Company recorded approximately $10.1 million as current portion of long-term debt and approximately $6.0 million as long-term debt on the consolidated balance sheets related to the senior secured term loan and the long-term mortgage loans.

The following table summarizes the total payments under the Company’s debt arrangements:

	Senior Secured Term Loan (1)		Long-term Mortgage Loans (1)		Total
	(in thousands)
2017	$	10,818	$	171	$	10,989
2018		5,114		171		5,285
2019		—		171		171
2020		—		171		171
2021		—		172		172
Thereafter		—		880		880
Total Payments	$	15,932	$	1,736	$	17,668

(1)

Interest is included