Long-term debt

The long-term debt of the Company is summarized below:



In thousands of dollars	Jun. 30, 2013		Dec. 30, 2012

Borrowings under revolving credit agreements expiring September 2014	$	126,000	$	205,000
Unsecured notes bearing fixed rate interest at 8.75% due November 2014	248,782		248,376
Unsecured notes bearing fixed rate interest at 10% due June 2015	62,216		61,286
Unsecured notes bearing fixed rate interest at 6.375% due September 2015	248,756		248,497
Unsecured notes bearing fixed rate interest at 10% due April 2016	176,641		174,241
Unsecured notes bearing fixed rate interest at 9.375% due November 2017 (a)	247,749		247,547
Unsecured notes bearing fixed rate interest at 7.125% due September 2018	247,357		247,153
Total long-term debt	$	1,357,501	$	1,432,100

(a) Callable commencing on November 15, 2013 at 104.688% of the principal amount.

For the first six months of 2013, the Company’s long-term debt decreased by $74.6 million reflecting $79.0 million in repayments under the revolving credit agreements partially offset by debt discount amortization. On June 30, 2013, the Company had unused borrowing capacity of $980.3 million under its revolving credit agreements.

On July 29, 2013, the Company completed the private placement of $600 million in aggregate principal amount of its 5.125% senior unsecured notes due 2020 (the 2020 Notes). The 2020 Notes were priced at 98.566% of face value, resulting in a yield to maturity of 5.375%. Subject to certain exceptions, the 2020 Notes may not be redeemed by the Company prior to July 15, 2016. The 2020 Notes were issued in a private offering that is exempt from the registration requirements of the Securities Act of 1933. The 2020 Notes are guaranteed on a senior basis by the subsidiaries of the Company that guarantee its revolving credit facilities and its notes maturing in 2014 and thereafter. The Company used the net proceeds to repay the outstanding amount of indebtedness incurred under its revolving credit facilities. Remaining proceeds will be used to repay its outstanding unsecured notes and/or for general corporate purposes.

On August 5, 2013, the Company entered into an agreement to replace, amend and restate its existing credit facilities with a credit facility expiring on August 5, 2018 (the “Amended and Restated Credit Agreement”). Total commitments under the new revolving credit agreement are $1.1 billion. Subject to total leverage ratio limits, the new revolving credit agreement eliminates the Company’s restriction on incurring additional indebtedness. The maximum total leverage ratio permitted by the Company’s new revolving credit agreement is 3.5x for the next 18 months, reducing to 3.25x from the 18th to the 30th month anniversary of the closing date, and then reducing to 3.0x thereafter, provided that if the Company completes its proposed acquisition of Belo, then each maximum total leverage ratio for the applicable period is increased by 0.5x. Commitment fees on the revolving credit agreement are equal to 0.375% - 0.50% of the undrawn commitments, depending upon the Company’s leverage ratio, and are paid on the average undrawn balance under the revolving credit agreement for each quarter. Under the agreement, the Company may borrow at an applicable margin above the Eurodollar base rate (LIBOR loan) or the higher of the Prime Rate, the Federal Funds Effective Rate plus 0.50%, or the one month LIBOR rate plus 1.00% (ABR loan). The applicable margin is determined based on the Company’s leverage ratio but will differ between LIBOR loans and ABR loans. For LIBOR based borrowing, the margin varies from 1.75% to 2.50%. For ABR based borrowing, the margin will vary from 0.75% to 1.50%. At its current leverage ratios, the Company’s applicable margins will be 2.00% and 1.00%, respectively. The Company also borrowed $144.8 million under a new five-year term loan. The interest rate on the term loan is equal to the rate for revolving credit loans in the Amended and Restated Credit Agreement. Both the revolving credit loans and the term loan are guaranteed by the Company’s wholly-owned material domestic subsidiaries.