The company had $17.6 million of cash and cash equivalents at December 30, 2011 compared with $35.9 million at December 31, 2010. In the fourth quarter, the company borrowed $11 million on its existing credit facility, the majority of which was to fund planned capital expenditures and restructuring actions.
Financing and Liquidity
The outstanding borrowings under the company’s credit facility, which, as amended on March 9, 2012, provides for up to $55 million of borrowings, were $44.0 million at December 30, 2011 and $55.0 million as of March 9, 2012.
As of December 30, 2011, the credit facility included financial covenants which required the company to comply with certain financial ratios. In the fourth quarter of 2011, the company did not meet certain of these financial covenants. On March 9, 2012, the company amended the credit agreement and received a waiver for these covenants for the fourth quarter of 2011. The amendment removed these financial covenants for the remainder of the term, reduced the borrowing limit from $60.8 million to $55.0 million, increased the interest rates on both the unborrowed portion of the commitment and the outstanding borrowings, reduced permitted capital expenditures, and reduced the available cash the company is required to maintain to $1.0 million. In addition, in connection with the amendment, the company issued in a private placement warrants to the lenders to purchase approximately 2.7 million shares of common stock at a price of $0.01 per share. The warrant is exercisable through March 9, 2015, and is subject to full clawback by the company if the outstanding debt is repaid in full by June 28, 2012. The company expects to pay fees of $1.1 million in connection with executing the amendment, plus legal fees and other expenses. The foregoing summary of the amended credit facility and related warrants is qualified in its entirety by reference to the text of the agreements to be included as exhibits to the company's Annual Report on Form 10-K for the year ended December 31, 2011.
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