DIP Credit Facility
As noted above in Note 2, contemporaneous with the Petition Date, the Company entered into the DIP Credit Facility which in effect refinanced the Company's then-existing revolving credit facility (the “Revolving Credit Facility”). Borrowings under the DIP Credit Facility were used to purchase $13,898 in investments, with the remaining $2,000 included in cash and cash equivalents. Unused portions of the DIP Credit Facility were subject to availability under a borrowing base and compliance with certain covenants. The DIP Credit Facility bore interest on a base rate method or LIBOR method, in each case plus an applicable margin percentage, at the option of the Company. Interest on the LIBOR loans was paid on a monthly or quarterly basis, and interest on the base rate loans was paid on a quarterly basis. The interest rate on the DIP Credit Facility was 5.5% at September 30, 2012.
The Company paid a one-time fee of $125 in connection with obtaining the DIP Credit Facility. Indebtedness under the DIP Credit Facility was guaranteed by all of the Company’s direct and indirect subsidiaries that were not borrowers there under and was secured by a security interest in all of the Company’s and its subsidiaries' tangible and intangible assets.
Senior Secured Notes
The Notes are fully, unconditionally and irrevocably guaranteed on a senior secured basis, jointly and severally, by each of the Company’s existing and future domestic restricted subsidiaries. The Notes and the guarantees rank senior in right of payment to all existing and future subordinated indebtedness of the Company and its subsidiary guarantors, as applicable, and equal in right of payment with all existing and future senior indebtedness of the Company and of such subsidiaries. The Notes and the guarantees are secured by a lien on substantially all of the Company’s assets, provided, however, that pursuant to the terms of an intercreditor agreement, the security interest in those assets consisting of receivables, inventory, deposit accounts, securities accounts and certain other assets that secure the Notes and the guarantees are contractually subordinated to a lien thereon that secured the DIP Credit Facility up to an aggregate principal amount of $25,000 and certain other permitted indebtedness.