4.    Debt and other Contractual Obligations

In September 2013, Juniper assumed debt of $3.9 million in connection with its acquisition of Juniper Pharma Services. Juniper Pharma Services entered into a Business Loan Agreement (“Loan Agreement”) covering three loan facilities with Lloyds TSB Bank (“Lloyds”), as administrative agent. Juniper Pharma Services had withdrawn $3.9 million and as of December 31, 2015 owed $3.1 million. The three loan facilities are each repayable by monthly installments, one started repayment in February 2013 and the remaining two commenced in October 2013. All facilities are due for repayment over 15 years from the date of drawdown. Two of the facilities bear interest at the Bank of England’s base rate plus 1.95% and 2.55%, respectively. The interest rate at December 31, 2015 for these two facilities was 2.45% and 3.05%, respectively. The third facility is a fixed rate agreement bearing interest at 3.52% per annum. The weighted average interest rate for the three loan facilities for the year ending December 31, 2015 was 3.00%. The Loan Agreement is secured by the mortgaged property and an unlimited lien on the other assets of Juniper Pharma Services. The Loan Agreement contains financial covenants that limit the amount of indebtedness Juniper Pharma Services may incur, requires Juniper Pharma Services to maintain certain levels of net worth, and restricts Juniper Pharma Service’s ability to materially alter the character of its business. As of December 31, 2015 the Company is in compliance with all of the covenants under the Loan Agreement.

The Company’s significant outstanding contractual obligations relate to operating leases for the Company’s facilities and loan agreements. The Company’s facility leases are non-cancellable and contain renewal options. The Company’s future contractual obligations include the following (in thousands):

 

		Total				2015				2016				2017				2018				2019				Thereafter
Operating lease obligations		$	1,323			$	370			$	436			$	443			$	74			$	—			$	—
Loan principal repayments			3,135				238				245				253				261				268				1,870
Total		$	4,458			$	608			$	681			$	696			$	335			$	268			$	1,870

Rent expense was $0.3 million for December 31, 2015, $0.1 million for December 31, 2014, and $0.3 million for December 31, 2013.

Interest expense, net was $0.1 million for the years ended December 31, 2015 and 2014, respectively. Interest expense, net was $25,000 for the year ended December 31, 2013.

As part of the acquisition of Juniper Pharma Services, Juniper assumed a $2.5 million obligation under a grant arrangement with the Regional Growth Fund on behalf of the Secretary of State for Business, Innovation, and Skills in the United Kingdom. Juniper Pharma Services used this grant to fund the building of its second facility, which includes analytical labs, office space, and a manufacturing facility. As a part of the arrangement, Juniper Pharma Services is required to create and maintain certain full-time equivalent personnel levels through October 2017. As of December 31, 2015, the Company is in compliance with the covenants of the arrangement.

The income from the Regional Growth Fund will be recognized on a decelerated basis over the next three years. As of December 31, 2015, the obligation is valued at $1.5 million and is recorded in deferred revenue within the consolidated balance sheets. The amount of other income on the obligation that will be recognized provided the Company remains in compliance with the covenants would be the following (in thousands):

 

Year		Total
2016			770
2017			710
Total		$	1,480