7. Credit Facility

The outstanding credit facility as of March 31, 2013 and December 31, 2012 was $3,641,477 and $4,169,818, respectively, which is secured by the general assets of the Predecessor. Interest is calculated at a floating rate of interest equal to the one-month London Interbank Offered Rate plus 2.75%, and the rate of interest has been fixed at a rate of 4.90% through the purchase of an amortizing interest rate swap. The swap has a notional amount of $3,641,477 and $4,169,818 as of March 31, 2013 and December 31, 2012, respectively, and a termination date of September 30, 2015. The interest rate swap is not designated as a hedging instrument under ASC 815, Derivatives and Hedging. The swap is recorded in accounts payable and accrued expenses in the condensed consolidated balance sheets.

The credit facility and the swap were repaid in April 2013 from the proceeds of the IPO.