Long-term Debt and Capital Lease Obligations

12 Months Ended

Dec. 31, 2013

Long-term Debt and Capital Lease Obligations

8. Long-term Debt and Capital Lease Obligations

Long-term debt and capital lease obligations were comprised of the following at December 31, 2013 and 2012:

In thousands	2013			2012
Bank term loan	$	9,100		$	11,200
Capital lease obligations		—			15
		9,100			11,215
Less current portion		(4,200	)		(2,115	)
	$	4,900		$	9,100

The term loan provides for quarterly payments of principal and interest with final scheduled maturity on December 31, 2015. The loan bears interest at LIBOR plus 1.25 to 2.25 percent, depending on the percentage of the Company’s liquid assets on deposit with or invested through the bank, or at the prime rate. The effective interest on the loan was 1.42 percent at December 31, 2013. The loan is secured by a lien on all assets of the Company excluding intellectual property, which the Company has agreed not to pledge to any other party. The loan requires the Company to maintain a minimum of $15.0 million in unrestricted cash, cash equivalents and investments. The loan also contains certain covenants that restrict additional indebtedness, additional liens and sales of assets, and dividends, distributions or repurchases of common stock.

The future scheduled principal payments due under the term loan were as follows at December 31, 2013:

In thousands
Year ended December 31:
2014	$	4,200
2015		4,900
		9,100
Less current portion		(4,200	)
Long-term portion	$	4,900