Quarterly report pursuant to Section 13 or 15(d)

Financing Arrangements

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Financing Arrangements
9 Months Ended
Sep. 30, 2012
Debt Disclosure [Abstract]  
Financing Arrangements
Financing Arrangements

The Company has a secured term loan credit facility (“secured debt”). Under the terms of the secured debt, the Company will make interest only payments through March 2013. Subsequent to the interest only payments, the note will amortize with principal and interest payments through the remaining term of the loan. Additionally, the Company must also make an additional final payment equal to 6% of the total amount borrowed which is due at maturity and is being accreted over the life of the loan. The Company also has a cash-collateralized revolving credit facility under which the Company may elect to borrow up to $10 million. All outstanding amounts under the credit facility may become due and payable if the Company fails to maintain a cash balance equal to the amount outstanding under the credit facility. The carrying values and the fixed contractual coupon rates of our financing arrangements are as follows (dollars in millions):

 
September 30, 2012
 
December 31, 2011
Bank line of credit, Prime + 2.0%, due March 29, 2013
$

 
$
10,000

Current portion notes payable, 8.64%, due August 1, 2014
$
7,473

 
$

Current portion notes payable, 8.9012%, due August 1, 2014
2,799

 

Total current portion of notes payable
$
10,272

 
$
10,000

Long-term portion notes payable, 8.64%, due August 1, 2014
$
13,070

 
$
20,286

Long-term portion notes payable, 8.9012%, due August 1, 2014
4,806

 

Total long-term portion of notes payable
$
17,876

 
$
20,286