|
6. Long-term Debt and Derivatives
Long-term debt, net of current maturities, is as follows:
|
|
|
March 31, |
|
December 31, |
|
|
|
|
2012 |
|
2011 |
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
Senior secured credit facility |
|
$ |
1,703,125 |
|
$ |
1,715,750 |
|
|
$ 325 million 8 ¾% senior subordinated notes due August 2019 |
|
325,000 |
|
325,000 |
|
|
Other long-term obligations |
|
1,979 |
|
1,949 |
|
|
Capital leases |
|
2,185 |
|
2,215 |
|
|
|
|
2,032,289 |
|
2,044,914 |
|
|
Less current maturities of long-term debt |
|
(44,581 |
) |
(44,559 |
) |
|
Less discount on senior secured credit facility Term Loan B |
|
(1,689 |
) |
(1,749 |
) |
|
|
|
$ |
1,986,019 |
|
$ |
1,998,606 |
|
The following is a schedule of future minimum repayments of long-term debt as of March 31, 2012 (in thousands):
|
Within one year |
|
$ |
44,581 |
|
|
1-3 years |
|
128,942 |
|
|
3-5 years |
|
825,223 |
|
|
Over 5 years |
|
1,033,543 |
|
|
Total minimum payments |
|
$ |
2,032,289 |
|
Senior Secured Credit Facility
The Company’s senior secured credit facility had a gross outstanding balance of $1,703.1 million at March 31, 2012, consisting of $285.0 million drawn under the revolving credit facility, a $673.7 million Term Loan A facility, and a $744.4 million Term Loan B facility. Additionally, at March 31, 2012, the Company was contingently obligated under letters of credit issued pursuant to the senior secured credit facility with face amounts aggregating $24.5 million, resulting in $390.5 million of available borrowing capacity as of March 31, 2012 under the revolving credit facility.
Covenants
The Company’s senior secured credit facility and $325 million 83/4% senior subordinated notes require it, among other obligations, to maintain specified financial ratios and to satisfy certain financial tests, including fixed charge coverage, interest coverage, senior leverage and total leverage ratios. In addition, the Company’s senior secured credit facility and $325 million 83/4% senior subordinated notes restrict, among other things, the Company’s ability to incur additional indebtedness, incur guarantee obligations, amend debt instruments, pay dividends, create liens on assets, make investments, engage in mergers or consolidations, and otherwise restrict corporate activities.
At March 31, 2012, the Company was in compliance with all required financial covenants.
Interest Rate Swap Contracts
There were no outstanding interest rate swap contracts as of March 31, 2012 and December 31, 2011. The effect of derivative instruments on the consolidated statement of income for the three months ended March 31, 2011 was as follows (in thousands):
|
|
|
Gain (Loss) |
|
Location of Gain (Loss) |
|
Gain (Loss) |
|
|
|
|
|
|
|
|
Recognized in |
|
Reclassified from |
|
Reclassified from |
|
Location of Gain (Loss) |
|
Gain (Loss) |
|
|
Derivatives in a |
|
OCI on Derivative |
|
AOCI into Income |
|
AOCI into Income |
|
Recognized in Income on |
|
Recognized in Income on |
|
|
Cash Flow Hedging Relationship |
|
(Effective Portion) |
|
(Effective Portion) |
|
(Effective Portion) |
|
Derivative (Ineffective Portion) |
|
Derivative (Ineffective Portion) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap contracts |
|
$ |
(340 |
) |
Interest expense |
|
$ |
(4,548 |
) |
None |
|
$ |
— |
|
|
Total |
|
$ |
(340 |
) |
|
|
$ |
(4,548 |
) |
|
|
$ |
— |
|
|
|
|
Location of Gain (Loss) |
|
|
|
|
Derivatives Not Designated as |
|
Recognized in Income |
|
Gain (Loss) Recognized |
|
|
Hedging Instruments |
|
on Derivative |
|
in Income on Derivative |
|
|
|
|
|
|
|
|
|
Interest rate swap contracts |
|
Interest expense |
|
$ |
(3 |
) |
|
Total |
|
|
|
$ |
(3 |
) |
In addition, during the three months ended March 31, 2011, the Company amortized to interest expense $1.9 million in OCI related to the derivatives that were de-designated as hedging instruments under ASC 815, “Derivatives and Hedging.”
|