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9. Borrowings
Long-term debt, capital lease and other financing obligations as of March 31, 2012 and December 31, 2011 consist of the following:
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March 31,
2012
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|
December 31,
2011
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|
|
Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building
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|
$
|
2,231
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|
$
|
2,295
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|
Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment
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|
4,443
|
|
4,537
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|
|
2.75% note, due in monthly installments of $3, including interest, due October 2024, collateralized by equipment
|
|
433
|
|
440
|
|
|
10.00% note, due in monthly installments of $10, including interest, due December 2014
|
|
371
|
|
400
|
|
|
Capital leases and other financing obligations
|
|
505
|
|
568
|
|
|
|
|
7,983
|
|
8,240
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|
|
Less current maturities
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|
968
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|
989
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|
|
|
|
$
|
7,015
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|
$
|
7,251
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On January 24, 2011, we entered into a $2,550 term loan with PNC Bank to refinance the existing mortgage on our California facility. The term loan is payable as follows, subject to acceleration upon the occurrence of an event of default or termination of the Revolving Credit Agreement: 119 consecutive monthly principal payments of $21 plus interest commencing on February 1, 2011 and continuing on the first day of each month thereafter followed by a 120th payment of all unpaid principal, interest and fees on February 1, 2021. The term loan is collateralized with our California facility located in Compton, California. The term loan bears interest at PNC Base Rate plus 2.25%, or 1-, 2- or 3-month PNC LIBOR Rate plus 3.25%. As of March 31, 2012 and December 31, 2011, the interest rate was 5.50% for both periods.
On March 10, 2011, ARCA Advanced Processing, LLC entered into three separate commercial term loans (“Term Loans”) with Susquehanna Bank, pursuant to the guidelines of the U.S. Small Business Administration 7(a) Loan Program. The total amount of the Term Loans is $4,750, split into three separate loans for $2,100; $1,400; and $1,250. The Term Loan matures in ten years and bears an interest rate of Prime plus 2.75%. As of March 31, 2012 and December 31, 2011, the interest rate was 6.00% for both periods. Borrowings under the Term Loans are secured by substantially all of the assets of AAP along with liens on the business assets and certain personal assets of the owners of 4301 Operations, LLC. We are a guarantor of the Term Loans along with 4301 Operations, LLC and its owners.
Capital leases and other financing obligations: We acquire certain equipment under capital leases and other financing obligations. The cost of the equipment was approximately $1,948 and $1,940 at March 31, 2012 and December 31, 2011, respectively. Accumulated amortization at March 31, 2012 and December 31, 2011 was approximately $1,507 and $1,458, respectively. Depreciation and amortization expense is included in cost of revenues and selling, general and administrative expenses.
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