21 merger transaction on may 28 , 2010 , hillman was acquired by affiliates of ohcp and certain members of hillman 's management and board of directors . pursuant to the terms and conditions of an agreement and plan of merger dated as of april 21 , 2010 , the company was merged with an affiliate of ohcp with the company surviving the merger transaction . as a result of the merger transaction , hillman is a wholly-owned subsidiary of holdco . the total consideration paid in the merger transaction was $ 832.7 million which includes $ 11.5 million for the quick tag license and related patents , repayment of outstanding debt , and the net value of the company 's outstanding junior subordinated debentures ( $ 105.4 million liquidation value , net of $ 3.3 million in trust common securities , at the time of the merger ) . financing arrangements on may 28 , 2010 , the company and certain of our subsidiaries closed on a $ 320.0 million senior secured first lien credit facility ( the senior facilities ) , consisting of a $ 290.0 million term loan and a $ 30.0 million revolving credit facility ( revolver ) . the term loan portion of the senior facilities had a six year term and the revolver had a five year term . the senior facilities provide borrowings at interest rates based on a eurodollar rate plus a margin of 3.75 % ( the eurodollar margin ) , or a base rate ( the base rate ) plus a margin of 2.75 % ( the base rate margin ) . the eurodollar rate was subject to a minimum floor of 1.75 % and the base rate was subject to a minimum floor of 2.75 % . concurrently with the merger transaction , hillman group issued $ 150.0 million aggregate principal amount of senior notes due 2018 ( the 10.875 % senior notes ) . on march 16 , 2011 , hillman group completed an offering of $ 50.0 million aggregate principal amount of 10.875 % senior notes . hillman group received a premium of approximately $ 4.6 million on the $ 50.0 million 10.875 % senior notes offering . on december 21 , 2012 , hillman group completed an offering of $ 65.0 million aggregate principal amount of 10.875 % senior notes . hillman group received a premium of approximately $ 4.2 million on the $ 65.0 million 10.875 % senior notes offering . the 10.875 % senior notes are guaranteed by the hillman companies , inc. , hillman investment company , and all of the domestic subsidiaries of hillman group . hillman group pays interest on the 10.875 % senior notes semi-annually on june 1 and december 1 of each year . the senior facilities contain financial and operating covenants . these covenants require the company to maintain certain financial ratios , including a secured leverage ratio . these debt agreements provide for customary events of default , including , but not limited to , payment defaults , breach of representations or covenants , cross-defaults , bankruptcy events , failure to pay judgments , attachment of its assets , change of control , and the issuance of an order of dissolution . certain of these events of default are subject to notice and cure periods or materiality thresholds . the occurrence of an event of default permits the lenders under the senior facilities to accelerate repayment of all amounts due , terminate commitments , direct borrower to pay collateral agent additional cash collateral , and enforce any and all rights . the company pays interest to the trust on the junior subordinated debentures underlying the trust preferred securities at the rate of 11.6 % per annum on their face amount of $ 105.4 million , or $ 12.2 million per annum in the aggregate . the trust distributes an equivalent amount to the holders of the trust preferred securities . pursuant to the indenture that governs the trust preferred securities , the trust is able to defer distribution payments to holders of the trust preferred securities for a period that can not exceed 60 months ( the deferral period ) . during a deferral period , the company is required to accrue the full amount of all interest payable , and such deferred interest payable would become immediately payable by the company at the end of the deferral period . there were no deferrals of distribution payments to holders of the trust preferred securities in 2013 or 2012 . 22 effective april 18 , 2011 , the company completed an amendment to the credit agreement governing our senior facilities . the senior facilities amendment eliminated the total leverage and interest coverage covenants and reduced the secured leverage covenant to 4.75x with no future step downs . the term loan pricing was modified to reduce the eurodollar margin and the base rate margin by 25 basis points and reduce the floor on eurodollar and base rate loans by an additional 25 basis points . in connection with the amendment to the credit agreement , the company incurred loan discount costs of $ 1.25 million . as the modification of the senior facilities agreement was not substantial , the unamortized loan discount and debt issuance costs will be amortized over the term of the amended senior facilities . effective november 4 , 2011 , the company entered into a joinder agreement to our credit agreement under the existing senior facilities ( the 2011 incremental facility ) . the 2011 incremental facility increased the aggregate term loan commitments available to hillman group under the senior facilities by $ 30.0 million . in connection with the 2011 incremental facility , the company incurred loan discount costs of approximately $ 0.8 million . as the modification of the senior facilities agreement was not substantial , the unamortized loan discount costs will be amortized over the term of the amended senior facilities . story_separator_special_tag year ended december 31 , 2012 and year ended december 31 , 2011 the effective income tax rates were 41.7 % and 32.4 % for the twelve month periods ended december 31 , 2012 and 2011 , respectively . the effective income tax rate differed from the federal statutory rate in the twelve month period ended december 31 , 2012 primarily due to a decrease in the reserve for unrecognized tax benefits . the effective income tax rate differed from the federal statutory rate in the twelve month period ended december 31 , 2011 primarily due to the increase in the valuation reserve recorded against certain deferred tax assets in addition to the effect of state rates . the effective income tax rate differed from the federal statutory rate in the twelve month periods ended december 31 , 2012 and 2011 due to the effect of foreign and state taxes . see note 6 , income taxes , of notes to consolidated financial statements for income taxes and disclosures related to 2012 and 2011 income tax events . 30 story_separator_special_tag font-family : times new roman ; font-size:10pt `` width= `` 100 % `` > ( 2 ) interest payments for long term senior term loans and the 10.875 % senior notes . interest payments on the variable rate long term senior term loans were calculated using the actual interest rate of 3.75 % as of december 31 , 2013. interest payments on the 10.875 % senior notes were calculated at their fixed rate . ( 3 ) all of the contractual obligations noted above are reflected on the company 's consolidated balance sheet as of december 31 , 2013 except for the interest payments , purchase obligations , and operating leases . the company has a purchase agreement with our supplier of key blanks which requires minimum purchases of 100 million key blanks per year . to the extent minimum purchases of key blanks are below 100 million , the company must pay the supplier $ .0035 per key multiplied by the shortfall . since the inception of the contract in 1998 , the company has purchased more than the requisite 100 million key blanks per year from the supplier . in 2013 , the company extended this contract for an additional three years . off-balance sheet arrangements the company does not have any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k under the securities exchange act of 1934 , as amended . 33 borrowings as of december 31 , 2013 , the company had $ 26.1 million available under our secured credit facilities . the company had approximately $ 386.0 million of outstanding debt under our secured credit facilities at december 31 , 2013 , consisting of $ 385.4 million in term loans and $ 0.6 million in capitalized lease and other obligations . the term loans consisted of $ 385.4 million in term b-2 loans at a three month libor rate plus margin of 3.75 % . the capitalized lease and other obligations were at various interest rates . at december 31 , 2013 and 2012 , the company borrowings were as follows : replace_table_token_6_th descriptions of the company 's credit agreement governing the senior facilities , as amended , and the 10.875 % senior notes are contained in the financing arrangements section of this annual report on form 10-k. the company 's senior facilities require the maintenance of the secured leverage ratio described above and limit the ability of the company to incur debt , make investments , make dividend payments to holders of the trust preferred securities , or undertake certain other business activities . upon the occurrence of an event of default under the credit agreement , all amounts outstanding , together with accrued interest , could be declared immediately due and payable by our lenders . below are the calculations of the financial covenant , as amended on april 18 , 2011 , with the senior facilities requirement for the twelve months ended december 31 , 2013 : ( dollars in thousands ) actual ratio requirement secured leverage ratio senior term loan balance $ 385,399 revolver  capital leases and other credit obligations 556 total debt $ 385,955 adjusted ebitda ( 1 ) $ 127,240 leverage ratio ( must be below requirement ) 3.03 4.75 ( 1 ) adjusted ebitda is a non-gaap measure defined as income from operations ( $ 56,441 ) plus depreciation ( $ 24,796 ) , amortization ( $ 22,112 ) , stock compensation expense ( $ 9,006 ) , restructuring costs ( $ 4,382 ) , acquisition and integration expenses ( $ 8,638 ) , foreign exchange losses ( $ 2,252 ) , management fees ( $ 77 ) , and minus other ( $ 464 ) . 34 related party transactions the company has recorded management fee charges and expenses from ohcp of $ 77 thousand for the year ended december 31 , 2013 , $ 155 thousand for the year ended december 31 , 2012 , and $ 110 thousand for the year ended december 31 , 2011. gregory mann and gabrielle mann are employed by the all points subsidiary of hillman . all points leases an industrial warehouse and office facility from companies under the control of the manns . the company has recorded rental expense for the lease of this facility on an arm 's length basis . the rental expense for the lease of this facility in the amount of $ 311 thousand for the years ended december 31 , 2013 , 2012 , and 2011. in connection with the paulin acquisition , the company entered into three leases on february 19 , 2013 for five properties containing industrial warehouse , manufacturing plant , and office facilities . the owners of the properties under one lease are relatives of richard paulin , who is employed by the hillman group canada ulc

liquidity and capital resources cash flows the statements of cash flows reflect the changes in cash and cash equivalents for the years ended december 31 , 2013 , 2012 , and 2011 by classifying transactions into three major categories : operating , investing , and financing activities . operating activities net cash provided by operating activities for the year ended december 31 , 2013 of $ 41.5 million was generated by the net loss of $ 1.1 million adjusted for non-cash charges of $ 54.0 million for depreciation , amortization , dispositions of equipment , deferred taxes , deferred financing , stock-based compensation , and other non-cash interest which was partially offset by cash related adjustments of $ 12.5 million for routine operating activities represented by changes in inventories , accounts receivable , accounts payable , accrued liabilities , and other assets . in 2013 , routine operating activities used cash for an increase in inventories of $ 11.5 million , an increase in accounts receivable of $ 9.1 million and other assets of $ 4.1 million while operating activities provided cash from an increase in accounts payable of $ 8.4 million , an increase of accrued liabilities of $ 2.7 million and an increase in other items of $ 1.1 million . net cash provided by operating activities for the year ended december 31 , 2012 of $ 23.3 million was generated by the net loss of $ 7.2 million adjusted for non-cash charges of $ 33.3 million for depreciation , amortization , dispositions of equipment , deferred taxes , deferred financing , stock-based compensation , and other non-cash interest which was partially offset by cash related adjustments of $ 10.0 million for routine operating activities represented by changes in inventories , accounts receivable , accounts payable , accrued liabilities , and other assets .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources cash flows the statements of cash flows reflect the changes in cash and cash equivalents for the years ended december 31 , 2013 , 2012 , and 2011 by classifying transactions into three major categories : operating , investing , and financing activities . operating activities net cash provided by operating activities for the year ended december 31 , 2013 of $ 41.5 million was generated by the net loss of $ 1.1 million adjusted for non-cash charges of $ 54.0 million for depreciation , amortization , dispositions of equipment , deferred taxes , deferred financing , stock-based compensation , and other non-cash interest which was partially offset by cash related adjustments of $ 12.5 million for routine operating activities represented by changes in inventories , accounts receivable , accounts payable , accrued liabilities , and other assets . in 2013 , routine operating activities used cash for an increase in inventories of $ 11.5 million , an increase in accounts receivable of $ 9.1 million and other assets of $ 4.1 million while operating activities provided cash from an increase in accounts payable of $ 8.4 million , an increase of accrued liabilities of $ 2.7 million and an increase in other items of $ 1.1 million . net cash provided by operating activities for the year ended december 31 , 2012 of $ 23.3 million was generated by the net loss of $ 7.2 million adjusted for non-cash charges of $ 33.3 million for depreciation , amortization , dispositions of equipment , deferred taxes , deferred financing , stock-based compensation , and other non-cash interest which was partially offset by cash related adjustments of $ 10.0 million for routine operating activities represented by changes in inventories , accounts receivable , accounts payable , accrued liabilities , and other assets .
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 Suspicious Activity Report : 21 merger transaction on may 28 , 2010 , hillman was acquired by affiliates of ohcp and certain members of hillman 's management and board of directors . pursuant to the terms and conditions of an agreement and plan of merger dated as of april 21 , 2010 , the company was merged with an affiliate of ohcp with the company surviving the merger transaction . as a result of the merger transaction , hillman is a wholly-owned subsidiary of holdco . the total consideration paid in the merger transaction was $ 832.7 million which includes $ 11.5 million for the quick tag license and related patents , repayment of outstanding debt , and the net value of the company 's outstanding junior subordinated debentures ( $ 105.4 million liquidation value , net of $ 3.3 million in trust common securities , at the time of the merger ) . financing arrangements on may 28 , 2010 , the company and certain of our subsidiaries closed on a $ 320.0 million senior secured first lien credit facility ( the senior facilities ) , consisting of a $ 290.0 million term loan and a $ 30.0 million revolving credit facility ( revolver ) . the term loan portion of the senior facilities had a six year term and the revolver had a five year term . the senior facilities provide borrowings at interest rates based on a eurodollar rate plus a margin of 3.75 % ( the eurodollar margin ) , or a base rate ( the base rate ) plus a margin of 2.75 % ( the base rate margin ) . the eurodollar rate was subject to a minimum floor of 1.75 % and the base rate was subject to a minimum floor of 2.75 % . concurrently with the merger transaction , hillman group issued $ 150.0 million aggregate principal amount of senior notes due 2018 ( the 10.875 % senior notes ) . on march 16 , 2011 , hillman group completed an offering of $ 50.0 million aggregate principal amount of 10.875 % senior notes . hillman group received a premium of approximately $ 4.6 million on the $ 50.0 million 10.875 % senior notes offering . on december 21 , 2012 , hillman group completed an offering of $ 65.0 million aggregate principal amount of 10.875 % senior notes . hillman group received a premium of approximately $ 4.2 million on the $ 65.0 million 10.875 % senior notes offering . the 10.875 % senior notes are guaranteed by the hillman companies , inc. , hillman investment company , and all of the domestic subsidiaries of hillman group . hillman group pays interest on the 10.875 % senior notes semi-annually on june 1 and december 1 of each year . the senior facilities contain financial and operating covenants . these covenants require the company to maintain certain financial ratios , including a secured leverage ratio . these debt agreements provide for customary events of default , including , but not limited to , payment defaults , breach of representations or covenants , cross-defaults , bankruptcy events , failure to pay judgments , attachment of its assets , change of control , and the issuance of an order of dissolution . certain of these events of default are subject to notice and cure periods or materiality thresholds . the occurrence of an event of default permits the lenders under the senior facilities to accelerate repayment of all amounts due , terminate commitments , direct borrower to pay collateral agent additional cash collateral , and enforce any and all rights . the company pays interest to the trust on the junior subordinated debentures underlying the trust preferred securities at the rate of 11.6 % per annum on their face amount of $ 105.4 million , or $ 12.2 million per annum in the aggregate . the trust distributes an equivalent amount to the holders of the trust preferred securities . pursuant to the indenture that governs the trust preferred securities , the trust is able to defer distribution payments to holders of the trust preferred securities for a period that can not exceed 60 months ( the deferral period ) . during a deferral period , the company is required to accrue the full amount of all interest payable , and such deferred interest payable would become immediately payable by the company at the end of the deferral period . there were no deferrals of distribution payments to holders of the trust preferred securities in 2013 or 2012 . 22 effective april 18 , 2011 , the company completed an amendment to the credit agreement governing our senior facilities . the senior facilities amendment eliminated the total leverage and interest coverage covenants and reduced the secured leverage covenant to 4.75x with no future step downs . the term loan pricing was modified to reduce the eurodollar margin and the base rate margin by 25 basis points and reduce the floor on eurodollar and base rate loans by an additional 25 basis points . in connection with the amendment to the credit agreement , the company incurred loan discount costs of $ 1.25 million . as the modification of the senior facilities agreement was not substantial , the unamortized loan discount and debt issuance costs will be amortized over the term of the amended senior facilities . effective november 4 , 2011 , the company entered into a joinder agreement to our credit agreement under the existing senior facilities ( the 2011 incremental facility ) . the 2011 incremental facility increased the aggregate term loan commitments available to hillman group under the senior facilities by $ 30.0 million . in connection with the 2011 incremental facility , the company incurred loan discount costs of approximately $ 0.8 million . as the modification of the senior facilities agreement was not substantial , the unamortized loan discount costs will be amortized over the term of the amended senior facilities . story_separator_special_tag year ended december 31 , 2012 and year ended december 31 , 2011 the effective income tax rates were 41.7 % and 32.4 % for the twelve month periods ended december 31 , 2012 and 2011 , respectively . the effective income tax rate differed from the federal statutory rate in the twelve month period ended december 31 , 2012 primarily due to a decrease in the reserve for unrecognized tax benefits . the effective income tax rate differed from the federal statutory rate in the twelve month period ended december 31 , 2011 primarily due to the increase in the valuation reserve recorded against certain deferred tax assets in addition to the effect of state rates . the effective income tax rate differed from the federal statutory rate in the twelve month periods ended december 31 , 2012 and 2011 due to the effect of foreign and state taxes . see note 6 , income taxes , of notes to consolidated financial statements for income taxes and disclosures related to 2012 and 2011 income tax events . 30 story_separator_special_tag font-family : times new roman ; font-size:10pt `` width= `` 100 % `` > ( 2 ) interest payments for long term senior term loans and the 10.875 % senior notes . interest payments on the variable rate long term senior term loans were calculated using the actual interest rate of 3.75 % as of december 31 , 2013. interest payments on the 10.875 % senior notes were calculated at their fixed rate . ( 3 ) all of the contractual obligations noted above are reflected on the company 's consolidated balance sheet as of december 31 , 2013 except for the interest payments , purchase obligations , and operating leases . the company has a purchase agreement with our supplier of key blanks which requires minimum purchases of 100 million key blanks per year . to the extent minimum purchases of key blanks are below 100 million , the company must pay the supplier $ .0035 per key multiplied by the shortfall . since the inception of the contract in 1998 , the company has purchased more than the requisite 100 million key blanks per year from the supplier . in 2013 , the company extended this contract for an additional three years . off-balance sheet arrangements the company does not have any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k under the securities exchange act of 1934 , as amended . 33 borrowings as of december 31 , 2013 , the company had $ 26.1 million available under our secured credit facilities . the company had approximately $ 386.0 million of outstanding debt under our secured credit facilities at december 31 , 2013 , consisting of $ 385.4 million in term loans and $ 0.6 million in capitalized lease and other obligations . the term loans consisted of $ 385.4 million in term b-2 loans at a three month libor rate plus margin of 3.75 % . the capitalized lease and other obligations were at various interest rates . at december 31 , 2013 and 2012 , the company borrowings were as follows : replace_table_token_6_th descriptions of the company 's credit agreement governing the senior facilities , as amended , and the 10.875 % senior notes are contained in the financing arrangements section of this annual report on form 10-k. the company 's senior facilities require the maintenance of the secured leverage ratio described above and limit the ability of the company to incur debt , make investments , make dividend payments to holders of the trust preferred securities , or undertake certain other business activities . upon the occurrence of an event of default under the credit agreement , all amounts outstanding , together with accrued interest , could be declared immediately due and payable by our lenders . below are the calculations of the financial covenant , as amended on april 18 , 2011 , with the senior facilities requirement for the twelve months ended december 31 , 2013 : ( dollars in thousands ) actual ratio requirement secured leverage ratio senior term loan balance $ 385,399 revolver  capital leases and other credit obligations 556 total debt $ 385,955 adjusted ebitda ( 1 ) $ 127,240 leverage ratio ( must be below requirement ) 3.03 4.75 ( 1 ) adjusted ebitda is a non-gaap measure defined as income from operations ( $ 56,441 ) plus depreciation ( $ 24,796 ) , amortization ( $ 22,112 ) , stock compensation expense ( $ 9,006 ) , restructuring costs ( $ 4,382 ) , acquisition and integration expenses ( $ 8,638 ) , foreign exchange losses ( $ 2,252 ) , management fees ( $ 77 ) , and minus other ( $ 464 ) . 34 related party transactions the company has recorded management fee charges and expenses from ohcp of $ 77 thousand for the year ended december 31 , 2013 , $ 155 thousand for the year ended december 31 , 2012 , and $ 110 thousand for the year ended december 31 , 2011. gregory mann and gabrielle mann are employed by the all points subsidiary of hillman . all points leases an industrial warehouse and office facility from companies under the control of the manns . the company has recorded rental expense for the lease of this facility on an arm 's length basis . the rental expense for the lease of this facility in the amount of $ 311 thousand for the years ended december 31 , 2013 , 2012 , and 2011. in connection with the paulin acquisition , the company entered into three leases on february 19 , 2013 for five properties containing industrial warehouse , manufacturing plant , and office facilities . the owners of the properties under one lease are relatives of richard paulin , who is employed by the hillman group canada ulc

