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LONG-TERM DEBT AND LEASE FINANCING OBLIGATION | 12 Months Ended
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Dec. 31, 2012
LONG-TERM DEBT AND LEASE FINANCING OBLIGATION |
LONG-TERM DEBT AND LEASE FINANCING OBLIGATION | 9. LONG-TERM DEBT AND LEASE FINANCING OBLIGATION In December 2009, we refinanced part of our debt and entered into a senior secured asset-based revolving credit agreement due January 2014 (the "Prior ABL Revolver") and issued $500.0 million in principal amount our 9 percent notes. On December 31, 2012 and 2011, we had no outstanding principal borrowings under the Prior ABL Revolver. At December 31, 2012 and 2011, we had outstanding letters of credit totaling $11.5 million and $15.8 million, respectively. On December 31, 2012 and 2011, we had $448.1 million and $497.5 million, respectively, outstanding, net of original issuance discount on the 9 percent notes, all of which were non-current. On January 14, 2011, we entered into an amendment to the Prior ABL Revolver. The amendment extended the maturity date of the Prior ABL Revolver by two years to January 13, 2016, eliminated the $15 million availability block, reduced the unused commitment fees, reduced the applicable margins for borrowings under the Prior ABL Revolver and amended the average excess availability amounts to which those margins applied. Borrowings under the Prior ABL Revolver were secured by substantially all of our assets. The weighted average interest rate under the Prior ABL Revolver was 4.8 percent and 4.3 percent as of December 31, 2012 and December 31, 2011, respectively. In addition to paying interest on outstanding principal under the Prior ABL Revolver, we were required to pay a fee in respect of the unutilized commitments and we were also required to pay customary letter of credit fees equal to the applicable margin on LIBOR loans and agency fees. The Prior ABL Revolver required that, if excess availability was less than $45 million, we complied with the minimum fixed charge coverage ratio of at least 1.10 to 1.00. At December 31, 2012 and December 31, 2011, excess availability was $288.5 million and $284.2 million, respectively. In addition, the Prior ABL Revolver included affirmative and negative covenants that, subject to significant exceptions, limited our ability and the ability of our subsidiaries to, among other things: incur, assume or permit to exist, additional indebtedness or guarantees; incur liens; make investments and loans; pay dividends, make payments or redeem or repurchase capital stock; engage in mergers, acquisitions and asset sales; prepay, redeem or purchase certain indebtedness including the 9 percent notes; amend or otherwise alter terms of certain indebtedness, including the 9 percent notes; engage in certain transactions with affiliates; and alter the business that we conduct. If at any time the aggregate amount of outstanding loans, unreimbursed letter of credit drawings and undrawn letters of credit under the Prior ABL Revolver exceeded the lesser of (i) the commitment amount and (ii) the borrowing base, we would have been required to repay outstanding loans and cash collateralize letters of credit in an aggregate amount equal to such excess, with no reduction of the commitment amount. If the amount available under the Prior ABL Revolver was less than $60 million for a period of three consecutive business days or certain events of default would have occurred, we would have been required to deposit cash from our material deposit accounts (including all concentration accounts) daily in a collection account maintained with the administrative agent under the Prior ABL Revolver, which would have been used to repay outstanding loans and cash collateralize letters of credit. Borrowings under the Prior ABL Revolver were secured by substantially all of our assets. On January 28, 2013, we refinanced the Prior ABL Revolver as described in Note 2 to these consolidated financial statements. On October 12, 2012 we redeemed $50.0 million aggregate principal amount of the 9 percent notes for $51.5 million, which is equal to 103 percent of the aggregate principal amount of the 9 percent notes that were redeemed per the original indenture for such notes, plus accrued interest of approximately $1.1 million. In addition, on January 17, 2013, we commenced the Tender Offer described in Note 2 to these consolidated financial statements to repurchase the $450.0 million outstanding principal amount of our 9 percent notes. The Tender Offer resulted in the repurchase of 99.3 percent of the 9 percent notes for approximately $502.3 million which included a make-whole payment of $55.4 million. On February 1, 2013, we issued a redemption notice effective March 4, 2013 to redeem the 0.7 percent of the 9 percent notes that remain outstanding following the expiration of the Tender Offer. On February 1, 2013, we also entered into a supplemental indenture to the indenture governing the 9 percent notes with the trustee thereunder following the receipt of consents of the requisite holders of the 9 percent notes, which removed substantially all of the restrictive covenants and certain events of default and other provisions in the indenture governing the 9 percent notes. On April 4, 2011, we redeemed all of our 7.125 percent senior notes due 2013 and 9.5 percent senior notes due 2014 that remained outstanding for the aggregate principal amount of $22.2 million. On October 20, 2011, we redeemed all of our 10.75 percent senior subordinated notes due 2016 at $105.375 per $100 face value of such notes, for an aggregate payment of $44.1 million, including early redemption costs. The redemption of these notes required payments on original issuance discounts and retirement premiums that were recorded throughout 2011 in the period of redemption. On December 29, 2011, we repaid in full our other note payable for $18.0 million. Scheduled maturities and cash interest. Scheduled maturities of long-term debt outstanding at December 31, 2012 are nil in 2013 to 2017 and $450.0 million thereafter. Cash payments for interest during the years ended December 31, 2012, 2011 and 2010 were $55.8 million, $63.4 million and $45.3 million, respectively. Lease Financing Obligation. At December 31, 2012 and 2011 we had a lease financing obligation of $112.3 million and $109.9 million, respectively. The increase from the December 31, 2011 balance to the December 31, 2012 balance is due to the fluctuation of the dollar against the Canadian currency. The lease financing obligation is the result of the sale and concurrent leaseback of certain land and buildings in Canada in 2007 for a term of 10 years. In connection with this transaction, a collateralized letter of credit was issued in favor of the buyer-lessor resulting in the transaction being recorded as a financing transaction rather than a sale under generally accepted accounting principles. As a result, the land, building and related accounts continue to be recognized in the Consolidated Balance Sheets. The amount of the collateralized letter of credit was $5.9 million and $8.0 as of December 31, 2012 and 2011, respectively. We are not obligated to repay the lease financing obligation amount of $112.3 million. Our obligation is for the future minimum lease payments under the terms of the related lease agreements. The future minimum lease payments under the terms of the related lease agreements at December 31, 2012 are $7.8 million in 2013, $7.8 million in 2014, $8.1 million in 2015, $8.2 million in 2016, $2.0 million in 2017 and nil thereafter. The change in the future minimum lease payments from the December 31, 2011 balance is due to the change in the Canadian dollar exchange rate for the year ended December 31, 2012.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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