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LONG-TERM DEBT: | 12 Months Ended
--- | ---
Dec. 31, 2014
Debt Disclosure [Abstract] |
Debt Disclosure [Text Block] | 10. LONG-TERM DEBT: Long-term debt consists of the following:
|  | As of December 31, |
|  | 2014 |  | 2013 |
|  | (In thousands) |
Senior bank term debt |  | $ | 368,532 |  | $ | 373,456 |
9.25% Senior Subordinated Notes due February 2020 |  |  | 335,000 |  |  | — |
12.5%/15% Senior Subordinated Notes due May 2016 |  |  | — |  |  | 327,034 |
10% Senior Secured TV One Notes due March 2016 |  |  | 119,000 |  |  | 119,000 |
Total debt |  |  | 822,532 |  |  | 819,490 |
Less: current portion |  |  | 3,829 |  |  | 3,840 |
Less: original issue discount |  |  | 2,227 |  |  | 3,855 |
Long-term debt, net |  | $ | 816,476 |  | $ | 811,795 |
Credit Facilities Current Credit Facilities On March 31, 2011, the Company entered into a senior secured credit facility (the “2011 Credit Agreement”) with a syndicate of banks, and simultaneously borrowed $386.0 million to retire all outstanding obligations under the Company’s previous amended and restated credit agreement and to fund our obligation with respect to a capital call initiated by TV One. The total amount available under the 2011 Credit Agreement was $411.0 million, initially consisting of a $386.0 million term loan facility that matures on March 31, 2016, and a $25.0 million revolving loan facility that matures on March 31, 2015. Borrowings under the credit facilities are subject to compliance with certain covenants including, but not limited to, certain financial covenants. Proceeds from the credit facilities can be used for working capital, capital expenditures made in the ordinary course of business, its common stock repurchase program, permitted direct and indirect investments and other lawful corporate purposes. On December 19, 2012, the Company entered into an amendment to the 2011 Credit Agreement (the “December 2012 Amendment”). The December 2012 Amendment: (i) modified financial covenant levels with respect to the Company's total-leverage, secured-leverage, and interest-coverage ratios; (ii) increased the amount of cash the Company can net for determination of its net indebtedness tests; and (iii) extended the time for certain of the 2011 Credit Agreement's call premium while reducing the time for its later and lower premium. On January 21, 2015, the Company entered into its second amendment to the 2011 Credit Agreement, which modified certain financial covenants. The financial ratios below reflect the changes from the most recent amendment which are effective as of March 31, 2015. The 2011 Credit Agreement, as amended on December 19, 2012 and January 21, 2015, contains affirmative and negative covenants that the Company is required to comply with, including: (a) maintaining an interest coverage ratio of no less than:
§ | 1.10 to 1.00 on December 31, 2012 and the last day of each fiscal quarter through December 31, 2013;
§ | 1.20 to 1.00 on March 31, 2014 and the last day of each fiscal quarter through September 30, 2014;
§ | 1.25 to 1.00 on December 31, 2014 and the last day of each fiscal quarter through September 30, 2015; and
§ | 1.25 to 1.00 on December 31, 2015 and the last day of each fiscal quarter thereafter.
(b) maintaining a senior secured leverage ratio of no greater than:
§ | 4.50 to 1.00 on September 30, 2012 and the last day of each fiscal quarter through December 31, 2013;
§ | 4.25 to 1.00 on March 31, 2014 and the last day of each fiscal quarter through June 30, 2014;
§ | 4.00 to 1.00 on September 30, 2014;
§ | 3.75 to 1.00 on December 31, 2014;
§ | 4.25 to 1.00 on March 31, 2015 and June 30, 2015;
§ | 4.00 to 1.00 on September 30, 2015; and
§ | 4.00 to 1.00 on December 31, 2015 and the last day of each fiscal quarter thereafter.
(c) maintaining a total leverage ratio of no greater than:
§ | 8.50 to 1.00 on December 31, 2012 and the last day of each fiscal quarter through December 31, 2013;
§ | 8.25 to 1.00 on March 31, 2014 and June 30, 2014;
§ | 8.00 to 1.00 on September 30, 2014;
§ | 7.50 to 1.00 on December 31, 2014;
§ | 8.00 to 1.00 on March 31, 2015 and the last day of each fiscal quarter through September 30, 2015; and
§ | 8.00 to 1.00 on December 31, 2015 and the last day of each fiscal quarter thereafter.
(d) limitations on:
§ | liens;
§ | sale of assets;
§ | payment of dividends; and
§ | mergers.
As of December 31, 2014, ratios calculated in accordance with the 2011 Credit Agreement, as amended, were as follows:
|  | As of |  |  |  |  |  |  |  |  |  |
|  | December |  |  | Covenant |  |  | Excess |  |
|  | 31, 2014 |  |  | Limit |  |  | Coverage |  |
Pro Forma Last Twelve Months Covenant EBITDA (In millions) |  | $ | 95.4 |  |  |  |  |  |  |  |  |  |
Pro Forma Last Twelve Months Interest Expense (In millions) |  | $ | 60.6 |  |  |  |  |  |  |  |  |  |
Senior Debt (In millions) |  | $ | 334.5 |  |  |  |  |  |  |  |  |  |
Total Debt (In millions) |  | $ | 669.5 |  |  |  |  |  |  |  |  |  |
Interest Coverage |  |  |  |  |  |  |  |  |  |  |  |  |
Covenant EBITDA / Interest Expense |  |  | 1.57 | x |  |  | 1.25 | x |  |  | 0.32 | x |
Senior Secured Leverage |  |  |  |  |  |  |  |  |  |  |  |  |
Senior Secured Debt / Covenant EBITDA |  |  | 3.51 | x |  |  | 3.75 | x |  |  | 0.24 | x |
Total Leverage |  |  |  |  |  |  |  |  |  |  |  |  |
Total Debt / Covenant EBITDA |  |  | 7.02 | x |  |  | 7.50 | x |  |  | 0.48 | x |
EBITDA - Earnings before interest, taxes, depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |
In accordance with the 2011 Credit Agreement, as amended, the calculations for the ratios above do not include the operating results or related debt of TV One, but rather include our proportionate share of cash dividends received from TV One for periods presented. As of December 31, 2014, the Company was in compliance with all of its financial covenants under the 2011 Credit Agreement, as amended. Under the terms of the 2011 Credit Agreement, as amended, interest on base rate loans is payable quarterly and interest on LIBOR loans is payable monthly or quarterly. The base rate is equal to the greater of: (i) the prime rate; (ii) the Federal Funds Effective Rate plus 0.50%; or (iii) the LIBOR Rate for a one-month period plus 1.00%. The applicable margin on the 2011 Credit Agreement is between (i) 4.50% and 5.50% on the revolving portion of the facility and (ii) 5.00% (with a base rate floor of 2.5% per annum) and 6.00% (with a LIBOR floor of 1.5% per annum) on the term portion of the facility. The average interest rate was 7.50% for 2014 and 2013. Quarterly installments of 0.25%, or $957,000, of the principal balance on the term loan are payable on the last day of each March, June, September and December. As of December 31, 2014, the Company had approximately $24.0 million of borrowing capacity under its revolving credit facility, after adjusting for outstanding letters of credit. After taking into consideration the financial covenants under the 2011 Credit Agreement, as amended, including adjusting for the outstanding letters of credit, approximately $21.0 million was available to be borrowed. The revolving credit facility expires on March 31, 2015. The Company does not anticipate entering into a new revolving credit facility upon expiration. As of December 31, 2014, the Company had outstanding approximately $368.5 million on its term credit facility. During the year ended December 31, 2014, the Company repaid approximately $4.9 million under the 2011 Credit Agreement, as amended. The original issue discount is being reflected as an adjustment to the carrying amount of the debt obligation and amortized to interest expense over the term of the credit facility. According to the terms of the Credit Agreement, as amended, the Company made an excess cash flow payment of approximately $1.1 million in April 2014. According to the terms of the Credit Agreement, as amended, the Company anticipates making an excess cash flow payment of between $0 and approximately $2.0 million in April 2015, depending on the level of acceptance by our syndicate of lenders. On January 21, 2015, the Company entered into a second amendment to the 2011 Credit Agreement (the “Second Amendment”) with its lenders. The provisions of the 2011 Credit Agreement relating to the call premium were revised by the Second Amendment to extend the call protection from April 1, 2015 until maturity. The Second Amendment provides a call premium of 101.5% if the 2011 Credit Agreement is refinanced with proceeds from a notes offering and 100.5% if the 2011 Credit Agreement is refinanced with proceeds from any other repayment, including proceeds from a new term loan. The call premium is payable at the earlier of any refinancing or final maturity. The Second Amendment also excludes any “going concern” or qualified audit opinion solely as a result of the upcoming revolver or term loan maturities from the Event of Default provisions of the 2011 Credit Agreement. Next, the Second Amendment provides for the ability to “amend and extend” both the term loan and the revolving credit facility provided for by the 2011 Credit Agreement and adds a $2 million lien basket for letters of credit not issued under the 2011 Credit Agreement. Finally, beginning with the quarter ending March 31, 2015, the Second Amendment implements certain changes to the financial covenants the Company must comply with in order to remain in compliance with the terms of the 2011 Credit Agreement. The Interest Coverage Ratio set forth in the 2011 Credit Agreement is revised to provide that the Company will not permit the Interest Expense Coverage Ratio for any Test Period ending on the last day of any Fiscal Quarter of the Company to be less than 1.25:1. The Total Leverage Ratio has been revised to provide that the Company will not permit the Total Leverage Ratio to be greater than 8.0:1 on the last day of any Fiscal Quarter of the Company. Lastly, the Senior Secured Leverage Ratio has been revised to provide that the Company will not permit the Senior Secured Leverage Ratio to be greater than 4.25:1 through the quarter ending June 30, 2015 and 4.0:1 for the quarter ending September 30, 2015 and the last day of each Fiscal Quarter of the Company thereafter. Senior Subordinated Notes On November 24, 2010, we issued $286.8 million of our 12.5%/15% Senior Subordinated Notes due May 2016 (the “2016 Notes”) in a private placement and exchanged and then cancelled approximately $97.0 million of $101.5 million in aggregate principal amount outstanding of our 87/8% senior subordinated notes due 2011 (the “2011 Notes”) and approximately $199.3 million of $200.0 million in aggregate principal amount outstanding of our 63/8% Senior Subordinated Notes that matured in February 2013 (the “2013 Notes” and the 2013 Notes together with the 2011 Notes, the “Prior Notes”). Subsequently, we repurchased or redeemed all remaining Prior Notes pursuant to the terms of their respective indentures. Effective March 13, 2014, the Company repurchased or otherwise redeemed all of the amounts outstanding under the 2016 Notes using proceeds from our 2020 Notes (defined below). The Company recorded a loss on retirement of debt of approximately $5.7 million during the first quarter of 2014. This amount included a write-off of approximately $4.1 million of previously capitalized debt financing costs and approximately $1.6 million associated with the net premium paid to retire the 2016 Notes. Interest on the 2016 Notes, that the Company repurchased or otherwise redeemed in March 2014, was initially payable in cash, or at our election, partially in cash and partially through the issuance of additional 2016 Notes (a “PIK Election”) on a quarterly basis in arrears on February 15, May 15, August 15 and November 15, commencing on February 15, 2011. We made a PIK Election with respect to interest accruing up to but not including May 15, 2012. Beginning on May 15, 2012, interest accrued at a rate of 12.5% and was payable wholly in cash and the Company no longer had an option to pay any portion of its interest through the issuance of PIK Notes. During the period the PIK Election was in effect, the interest paid in cash and the interest paid-in-kind (“PIK”) by issuance of additional 2016 Notes accrued for such quarterly period at 6.0% cash per annum and 9.0% PIK per annum. On February 10, 2014, the Company closed a private placement offering of $335.0 million aggregate principal amount of 9.25% senior subordinated notes due 2020 (the “2020 Notes”). The 2020 Notes were offered at an original issue price of 100.0% plus accrued interest from February 10, 2014. The 2020 Notes mature on February 15, 2020. Interest accrues at the rate of 9.25% per annum and is payable semiannually in arrears on February 15 and August 15 in the amount of approximately $15.5 million, commencing on August 15, 2014. The 2020 Notes are guaranteed by certain of the Company’s existing and future domestic subsidiaries and any other subsidiaries that guarantee the existing senior credit facility or any of the Issuer's other syndicated bank indebtedness or capital markets securities. The Company used the net proceeds from the offering to repurchase or otherwise redeem all of the amounts currently outstanding under its 2016 Notes and to pay the related accrued interest, premiums, fees and expenses associated therewith. During the year ended December 31, 2014, the Company capitalized approximately $4.5 million of costs associated with our 2020 Notes. The indenture that governs the 2020 Notes contains covenants that restrict, among other things, the ability of the Company to incur additional debt, purchase common stock, make capital expenditures, make investments or other restricted payments, swap or sell assets, engage in transactions with related parties, secure non-senior debt with assets, or merge, consolidate or sell all or substantially all of its assets. The Company conducts a portion of its business through its subsidiaries. Certain of the Company’s subsidiaries had fully and unconditionally guaranteed the Company’s 2020 Notes and the Company’s obligations under the 2011 Credit Agreement, as amended. TV One Senior Secured Notes TV One issued $119.0 million in senior secured notes on February 25, 2011. The proceeds from the notes were used to purchase equity interests from certain financial investors and TV One management. The notes bear interest at 10.0% per annum, which is payable monthly, and the entire principal amount is due on March 15, 2016. Future scheduled minimum principal payments of debt as of December 31, 2014, are as follows:
|  |  |  | Senior |  |  |  |  |
|  |  |  | Subordinated |  | TV One Senior |  |  |
|  | Credit Facility |  | Notes due 2020 |  | Secured Notes |  | Total |
2015 |  | $ | 3,829 |  | $ | — |  | $ | — |  | $ | 3,829 |
2016 |  |  | 364,703 |  |  | — |  |  | 119,000 |  |  | 483,703 |
2017 |  |  | — |  |  | — |  |  | — |  |  | — |
2018 |  |  | — |  |  | — |  |  | — |  |  | — |
2019 |  |  | — |  |  | — |  |  | — |  |  | — |
2020 |  |  | — |  |  | 335,000 |  |  | — |  |  | 335,000 |
Total Debt |  | $ | 368,532 |  | $ | 335,000 |  | $ | 119,000 |  | $ | 822,532 |
We continually evaluate opportunities based upon market conditions to refinance our outstanding indebtedness in order to reduce our borrowing costs, extend maturities and/or increase our operating flexibility. There can be no guarantee that any such refinancing opportunities will be available on acceptable terms or at all.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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