we expect that trend to continue due to the better liquidity and land positions of the larger homebuilders relative to the smaller , less capitalized homebuilders . our focus is on maintaining relationships and market share with these customers while balancing the competitive pressures we are facing in our markets with certain profitability expectations . our sales to the builder 100 ,  the country 's largest 100 homebuilders , increased 9.9 % during 2011 , despite a 8.6 % decrease in actual u.s. single-family housing starts for the year . we expect that our ability to 24 maintain strong relationships with the largest builders will be vital to our ability to grow and expand into new markets as well as maintain our current market share through the current downturn . additionally , during this downturn , we have been successful in expanding our custom homebuilder base while maintaining acceptable credit standards . expand into multi-family and light commercial business . we continue to look for ways to expand our multi-family and light commercial business to further diversify our customer base and lessen our dependence on single-family residential new construction . use of prefabricated components . prior to the current housing downturn , homebuilders were increasingly using prefabricated components in order to realize increased efficiency and improved quality . shortening cycle time from start to completion was a key imperative of the homebuilders during periods of strong consumer demand . with the current housing downturn , that trend decelerated as cycle time had less relevance . customers who traditionally used prefabricated components , for the most part , still do . however , the conversion of customers to this product offering has slowed . we expect this trend to continue at least for the duration of this downturn . in response , we have reduced our manufacturing capacity and delayed plans to open new facilities . economic conditions . economic changes both nationally and locally in our markets impact our financial performance . the building products supply industry is highly dependent upon new home construction and subject to cyclical market changes . our operations are subject to fluctuations arising from changes in supply and demand , national and local economic conditions , labor costs , competition , government regulation , trade policies and other factors that affect the homebuilding industry such as demographic trends , interest rates , single-family housing starts , employment levels , consumer confidence , and the availability of credit to homebuilders , contractors , and homeowners . over the past few years , the mortgage markets have experienced substantial disruption due to increased defaults . this resulted in a stricter regulatory environment and reduced availability of mortgages for potential homebuyers due to an illiquid credit market and tighter standards to qualify for mortgages . mortgage financing and commercial credit for smaller homebuilders continue to be severely constrained . as the housing industry is dependent upon the economy and employment levels as well as potential homebuyers ' access to mortgage financing and homebuilders ' access to commercial credit , it is likely that the housing industry will not significantly improve until conditions in the economy and the credit markets improve and unemployment rates decline . cost of materials . prices of wood products , which are subject to cyclical market fluctuations , may adversely impact operating income when prices rapidly rise or fall within a relatively short period of time . we purchase certain materials , including lumber products , which are then sold to customers as well as used as direct production inputs for our manufactured and prefabricated products . short-term changes in the cost of these materials , some of which are subject to significant fluctuations , are sometimes passed on to our customers , but our pricing quotation periods may limit our ability to pass on such price changes . we may also be limited in our ability to pass on increases on in-bound freight costs on our products due to the price of fuel . our inability to pass on material price increases to our customers could adversely impact our operating results . controlling expenses . another important aspect of our strategy is controlling costs and enhancing our status as a low-cost building materials supplier in the markets we serve . we pay close attention to managing our working capital and operating expenses . we have a best practices operating philosophy , which encourages increasing efficiency , lowering costs , improving working capital , and maximizing profitability and cash flow . we constantly analyze our workforce productivity to achieve the optimum , cost-efficient labor mix for our facilities . further , we pay careful attention to our logistics function and its effect on our shipping and handling costs . 25 current operating conditions and outlook the homebuilding industry continues to be challenging as u.s. single-family housing starts in 2011 were the lowest since the downturn began in 2006. according to the u.s. census bureau , actual u.s. single-family housing starts for 2011 were 430,700 , down 8.6 % compared to 2010. the housing industry continues to struggle due to the limited availability of credit to smaller homebuilders and potential homebuyers , a slow economic recovery , excess home inventory and high unemployment rates , among other factors . however , actual u.s. single-family housing starts for the fourth quarter of 2011 were 100,100 , a 4.7 % increase from the fourth quarter of 2010. the national association of homebuilders ( nahb ) is forecasting 499,000 u.s. single-family housing starts for 2012 , which is an increase of 15.9 % from 2011. we achieved an 11.2 % increase in sales during 2011 as compared to the prior year . we believe our broad offering of building products and construction services represents a value proposition to our customers that is superior to that of our competitors . story_separator_special_tag the weighted average interest rate on the borrowings outstanding under the term loan was 11.5 % at december 31 , 2011. interest on the term loan is payable quarterly in arrears . at any time we can redeem some or all of the loan at a redemption price equal to par plus an applicable prepayment premium that declines ratably to par . in addition to the financial covenants , the term loan contains other restrictive covenants , which , among other things , relate to the payment of dividends , incurrence of indebtedness , repurchase of common stock or other distributions , asset sales and investments . we were not in violation of any of these covenants at december 31 , 2011. the letter of credit facility includes a commitment fee of 0.5 % on any unused amount and assesses interest at a rate of 2.0 % on any outstanding letters of credit . all letters of credit issued under the letter of credit facility must be collateralized by cash equal to 105 % of the face amount of the letters of credit . rights offering and debt exchange in january 2010 , we completed a common stock rights offering and debt exchange for our 2012 notes . as part of these transactions , we raised $ 180.1 million of new equity capital through the issuance of 51,459,184 shares of common stock in the rights offering at a subscription price of $ 3.50 per share . we used $ 105.1 million of the proceeds from the rights offering to repurchase a portion of the 2012 notes in the debt exchange . we used a portion of the remaining $ 75.0 million of proceeds to pay expenses of the rights offering and the debt exchange and the remainder was used for general corporate purposes . in the debt exchange , holders of the 2012 notes exchanged $ 269.8 million aggregate principal amount of 2012 notes for ( i ) $ 139.7 million aggregate principal amount of new 2016 notes , ( ii ) $ 105.1 million in cash , and ( iii ) 7,112,244 shares of our common stock . we also amended the indenture under which the 2012 notes were issued to eliminate substantially all of the restrictive covenants , certain conditions to defeasance , and certain events of default and to release the liens on the collateral securing the 2012 notes . in 2011 , we repaid $ 5.3 million of our remaining 2012 notes . the $ 139.7 million in aggregate principal amount of new 2016 notes mature on february 15 , 2016. interest accrues on the 2016 notes at a rate of 3-month libor ( subject to a 3.0 % floor ) plus 10.0 % . libor is reset at the beginning of each quarterly period . the weighted-average interest rate at december 31 , 2011 for the 2016 notes was 13.0 % . interest on the floating rate notes is payable quarterly in arrears . at any time we can redeem some or all of the notes at a redemption price equal to par plus a specified premium that declines ratably to par . in the event of a change in control , we may be required to offer to purchase the 2016 notes at a purchase price equal to 101 % of the principal , plus accrued and unpaid interest . the notes are jointly and severally guaranteed by all of our subsidiaries and collateralized by a pledge of common stock of certain of our subsidiaries and by a second priority lien on substantially all tangible and intangible property and interests in property and proceeds thereof now owned or hereafter acquired by us and substantially all of our subsidiaries . all of the subsidiaries are wholly-owned and domiciled in the united states . the parent company has no independent assets or operations , and the guarantees are full and unconditional . the indenture covering the notes contains certain restrictive covenants , which , among other things , relate to the payment of dividends , incurrence of indebtedness , repurchase of common stock or other distributions , asset sales and investments . 32 long-term debt consisted of the following as of december 31 : replace_table_token_8_th * we completed construction on a new multi-purpose facility during 2006. other long-term debt represents an unfunded lease obligation for this facility . for accounting purposes , we are deemed the owner . as a result , the building and the offsetting long-term lease obligation are included on the consolidated balance sheet as a component of fixed assets and other debt , respectively . the building is being depreciated over its useful life , and the lease obligation is being amortized such that there will be no gain or loss recorded if the lease is not extended at the end of the term . capital expenditures capital expenditures vary depending on prevailing business factors , including current and anticipated market conditions . historically , capital expenditures have for the most part remained at relatively low levels in comparison to the operating cash flows generated during the corresponding periods . we expect our 2012 capital expenditures to be approximately $ 8 to $ 10 million primarily related to buyouts of additional expiring equipment and vehicle leases and facility improvements that will be needed to support our operations . disclosures of contractual obligations and commercial commitments the following summarizes our contractual obligations as of december 31 , 2011 ( in thousands ) : replace_table_token_9_th ( 1 ) libor rates on our term loan are subject to a 2 % floor and libor rates on our 2016 notes are subject to a 3 % floor . therefore , actual interest may differ from the amounts presented above if libor increases to greater than 2 % . ( 2 ) we have $ 2.3 million of uncertain tax positions recorded in long-term liabilities or as a reduction to operating loss carryforwards . we also have

liquidity and capital resources our primary capital requirements are to fund working capital needs and operating expenses , meet required interest and principal payments , and fund capital expenditures . in the past , our capital resources have primarily consisted of cash flows from operations and borrowings under our various credit facilities . in december of 2011 , we entered into a $ 160.0 million first-lien term loan and a stand-alone letter of credit facility , which provides up to $ 20.0 million of letters of credit . the term loan , which was issued at 97 % , provided $ 119.6 million of net proceeds after repaying the $ 20.0 million outstanding under the existing senior secured revolving credit facility , using $ 14.2 million to collateralize letters of credit outstanding under the new letter of credit facility , and paying fees and expenses related to this transaction . in conjunction with the closing of the term loan , we terminated our existing senior secured revolving credit facility ( see note 8 to the consolidated financial statements included in item 8 of this annual report on form 10-k ) . the homebuilding industry , and therefore our industry , has been in a significant downturn since 2006. we are expecting increased stability and a slight improvement in the housing industry in 2012. beyond 2012 , it is difficult for us to predict what will happen as our industry is dependent on a number of factors , including national economic conditions , employment levels , the availability of credit for homebuilders and potential home buyers , the level of foreclosures , existing home inventory , and interest rates . with the sustained downturn in the housing industry , our operations are no longer providing positive cash flows , and we are not expecting our cash flows from operations to be positive in 2012 . 29 our term loan contains financial covenants , which include maintaining a minimum amount of qualified cash and specified collateral value . qualified cash is defined as the amount of unrestricted cash and cash equivalents held in deposit or securities accounts which are subject to control agreements in favor of our lenders .


 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 our primary capital requirements are to fund working capital needs and operating expenses , meet required interest and principal payments , and fund capital expenditures . in the past , our capital resources have primarily consisted of cash flows from operations and borrowings under our various credit facilities . in december of 2011 , we entered into a $ 160.0 million first-lien term loan and a stand-alone letter of credit facility , which provides up to $ 20.0 million of letters of credit . the term loan , which was issued at 97 % , provided $ 119.6 million of net proceeds after repaying the $ 20.0 million outstanding under the existing senior secured revolving credit facility , using $ 14.2 million to collateralize letters of credit outstanding under the new letter of credit facility , and paying fees and expenses related to this transaction . in conjunction with the closing of the term loan , we terminated our existing senior secured revolving credit facility ( see note 8 to the consolidated financial statements included in item 8 of this annual report on form 10-k ) . the homebuilding industry , and therefore our industry , has been in a significant downturn since 2006. we are expecting increased stability and a slight improvement in the housing industry in 2012. beyond 2012 , it is difficult for us to predict what will happen as our industry is dependent on a number of factors , including national economic conditions , employment levels , the availability of credit for homebuilders and potential home buyers , the level of foreclosures , existing home inventory , and interest rates . with the sustained downturn in the housing industry , our operations are no longer providing positive cash flows , and we are not expecting our cash flows from operations to be positive in 2012 . 29 our term loan contains financial covenants , which include maintaining a minimum amount of qualified cash and specified collateral value . qualified cash is defined as the amount of unrestricted cash and cash equivalents held in deposit or securities accounts which are subject to control agreements in favor of our lenders .
```    
 Suspicious Activity Report : we expect that trend to continue due to the better liquidity and land positions of the larger homebuilders relative to the smaller , less capitalized homebuilders . our focus is on maintaining relationships and market share with these customers while balancing the competitive pressures we are facing in our markets with certain profitability expectations . our sales to the builder 100 ,  the country 's largest 100 homebuilders , increased 9.9 % during 2011 , despite a 8.6 % decrease in actual u.s. single-family housing starts for the year . we expect that our ability to 24 maintain strong relationships with the largest builders will be vital to our ability to grow and expand into new markets as well as maintain our current market share through the current downturn . additionally , during this downturn , we have been successful in expanding our custom homebuilder base while maintaining acceptable credit standards . expand into multi-family and light commercial business . we continue to look for ways to expand our multi-family and light commercial business to further diversify our customer base and lessen our dependence on single-family residential new construction . use of prefabricated components . prior to the current housing downturn , homebuilders were increasingly using prefabricated components in order to realize increased efficiency and improved quality . shortening cycle time from start to completion was a key imperative of the homebuilders during periods of strong consumer demand . with the current housing downturn , that trend decelerated as cycle time had less relevance . customers who traditionally used prefabricated components , for the most part , still do . however , the conversion of customers to this product offering has slowed . we expect this trend to continue at least for the duration of this downturn . in response , we have reduced our manufacturing capacity and delayed plans to open new facilities . economic conditions . economic changes both nationally and locally in our markets impact our financial performance . the building products supply industry is highly dependent upon new home construction and subject to cyclical market changes . our operations are subject to fluctuations arising from changes in supply and demand , national and local economic conditions , labor costs , competition , government regulation , trade policies and other factors that affect the homebuilding industry such as demographic trends , interest rates , single-family housing starts , employment levels , consumer confidence , and the availability of credit to homebuilders , contractors , and homeowners . over the past few years , the mortgage markets have experienced substantial disruption due to increased defaults . this resulted in a stricter regulatory environment and reduced availability of mortgages for potential homebuyers due to an illiquid credit market and tighter standards to qualify for mortgages . mortgage financing and commercial credit for smaller homebuilders continue to be severely constrained . as the housing industry is dependent upon the economy and employment levels as well as potential homebuyers ' access to mortgage financing and homebuilders ' access to commercial credit , it is likely that the housing industry will not significantly improve until conditions in the economy and the credit markets improve and unemployment rates decline . cost of materials . prices of wood products , which are subject to cyclical market fluctuations , may adversely impact operating income when prices rapidly rise or fall within a relatively short period of time . we purchase certain materials , including lumber products , which are then sold to customers as well as used as direct production inputs for our manufactured and prefabricated products . short-term changes in the cost of these materials , some of which are subject to significant fluctuations , are sometimes passed on to our customers , but our pricing quotation periods may limit our ability to pass on such price changes . we may also be limited in our ability to pass on increases on in-bound freight costs on our products due to the price of fuel . our inability to pass on material price increases to our customers could adversely impact our operating results . controlling expenses . another important aspect of our strategy is controlling costs and enhancing our status as a low-cost building materials supplier in the markets we serve . we pay close attention to managing our working capital and operating expenses . we have a best practices operating philosophy , which encourages increasing efficiency , lowering costs , improving working capital , and maximizing profitability and cash flow . we constantly analyze our workforce productivity to achieve the optimum , cost-efficient labor mix for our facilities . further , we pay careful attention to our logistics function and its effect on our shipping and handling costs . 25 current operating conditions and outlook the homebuilding industry continues to be challenging as u.s. single-family housing starts in 2011 were the lowest since the downturn began in 2006. according to the u.s. census bureau , actual u.s. single-family housing starts for 2011 were 430,700 , down 8.6 % compared to 2010. the housing industry continues to struggle due to the limited availability of credit to smaller homebuilders and potential homebuyers , a slow economic recovery , excess home inventory and high unemployment rates , among other factors . however , actual u.s. single-family housing starts for the fourth quarter of 2011 were 100,100 , a 4.7 % increase from the fourth quarter of 2010. the national association of homebuilders ( nahb ) is forecasting 499,000 u.s. single-family housing starts for 2012 , which is an increase of 15.9 % from 2011. we achieved an 11.2 % increase in sales during 2011 as compared to the prior year . we believe our broad offering of building products and construction services represents a value proposition to our customers that is superior to that of our competitors . story_separator_special_tag the weighted average interest rate on the borrowings outstanding under the term loan was 11.5 % at december 31 , 2011. interest on the term loan is payable quarterly in arrears . at any time we can redeem some or all of the loan at a redemption price equal to par plus an applicable prepayment premium that declines ratably to par . in addition to the financial covenants , the term loan contains other restrictive covenants , which , among other things , relate to the payment of dividends , incurrence of indebtedness , repurchase of common stock or other distributions , asset sales and investments . we were not in violation of any of these covenants at december 31 , 2011. the letter of credit facility includes a commitment fee of 0.5 % on any unused amount and assesses interest at a rate of 2.0 % on any outstanding letters of credit . all letters of credit issued under the letter of credit facility must be collateralized by cash equal to 105 % of the face amount of the letters of credit . rights offering and debt exchange in january 2010 , we completed a common stock rights offering and debt exchange for our 2012 notes . as part of these transactions , we raised $ 180.1 million of new equity capital through the issuance of 51,459,184 shares of common stock in the rights offering at a subscription price of $ 3.50 per share . we used $ 105.1 million of the proceeds from the rights offering to repurchase a portion of the 2012 notes in the debt exchange . we used a portion of the remaining $ 75.0 million of proceeds to pay expenses of the rights offering and the debt exchange and the remainder was used for general corporate purposes . in the debt exchange , holders of the 2012 notes exchanged $ 269.8 million aggregate principal amount of 2012 notes for ( i ) $ 139.7 million aggregate principal amount of new 2016 notes , ( ii ) $ 105.1 million in cash , and ( iii ) 7,112,244 shares of our common stock . we also amended the indenture under which the 2012 notes were issued to eliminate substantially all of the restrictive covenants , certain conditions to defeasance , and certain events of default and to release the liens on the collateral securing the 2012 notes . in 2011 , we repaid $ 5.3 million of our remaining 2012 notes . the $ 139.7 million in aggregate principal amount of new 2016 notes mature on february 15 , 2016. interest accrues on the 2016 notes at a rate of 3-month libor ( subject to a 3.0 % floor ) plus 10.0 % . libor is reset at the beginning of each quarterly period . the weighted-average interest rate at december 31 , 2011 for the 2016 notes was 13.0 % . interest on the floating rate notes is payable quarterly in arrears . at any time we can redeem some or all of the notes at a redemption price equal to par plus a specified premium that declines ratably to par . in the event of a change in control , we may be required to offer to purchase the 2016 notes at a purchase price equal to 101 % of the principal , plus accrued and unpaid interest . the notes are jointly and severally guaranteed by all of our subsidiaries and collateralized by a pledge of common stock of certain of our subsidiaries and by a second priority lien on substantially all tangible and intangible property and interests in property and proceeds thereof now owned or hereafter acquired by us and substantially all of our subsidiaries . all of the subsidiaries are wholly-owned and domiciled in the united states . the parent company has no independent assets or operations , and the guarantees are full and unconditional . the indenture covering the notes contains certain restrictive covenants , which , among other things , relate to the payment of dividends , incurrence of indebtedness , repurchase of common stock or other distributions , asset sales and investments . 32 long-term debt consisted of the following as of december 31 : replace_table_token_8_th * we completed construction on a new multi-purpose facility during 2006. other long-term debt represents an unfunded lease obligation for this facility . for accounting purposes , we are deemed the owner . as a result , the building and the offsetting long-term lease obligation are included on the consolidated balance sheet as a component of fixed assets and other debt , respectively . the building is being depreciated over its useful life , and the lease obligation is being amortized such that there will be no gain or loss recorded if the lease is not extended at the end of the term . capital expenditures capital expenditures vary depending on prevailing business factors , including current and anticipated market conditions . historically , capital expenditures have for the most part remained at relatively low levels in comparison to the operating cash flows generated during the corresponding periods . we expect our 2012 capital expenditures to be approximately $ 8 to $ 10 million primarily related to buyouts of additional expiring equipment and vehicle leases and facility improvements that will be needed to support our operations . disclosures of contractual obligations and commercial commitments the following summarizes our contractual obligations as of december 31 , 2011 ( in thousands ) : replace_table_token_9_th ( 1 ) libor rates on our term loan are subject to a 2 % floor and libor rates on our 2016 notes are subject to a 3 % floor . therefore , actual interest may differ from the amounts presented above if libor increases to greater than 2 % . ( 2 ) we have $ 2.3 million of uncertain tax positions recorded in long-term liabilities or as a reduction to operating loss carryforwards . we also have

