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Debt and Financing
3 Months Ended
Mar. 31, 2015
Debt Disclosure [Abstract]  
Debt and Financing
Debt and Financing

Our outstanding debt as of March 31, 2015 and December 31, 2014 consisted of the following:

As of March 31, 2015 (in millions)
Par Value
 
Discount
 
Book
Value
 
Stated
Interest Rate
 
Average Effective
Interest Rate
Term Loan
$
691.3

 
$
(5.4
)
 
$
685.9

 
8.3
%
 
8.5
%
ABL Facility(a) 

 

 

 
N/A

 
N/A

Secured Second A&R CDA
46.2

 

 
46.2

 
3.3-18.3%

 
7.3
%
Unsecured Second A&R CDA
73.2

 

 
73.2

 
3.3-18.3%

 
7.3
%
Lease financing obligations
282.7

 

 
282.7

 
10.0-18.2%

 
12.0
%
Other
0.2

 

 
0.2

 


 


Total debt
$
1,093.6

 
$
(5.4
)
 
$
1,088.2

 
 
 
 
Current maturities of Term Loan
(7.0
)
 

 
(7.0
)
 
 
 
 
Current maturities of lease financing obligations
(7.0
)
 

 
(7.0
)
 
 
 
 
Current maturities of other
(0.2
)
 

 
(0.2
)
 
 
 
 
Long-term debt
$
1,079.4

 
$
(5.4
)
 
$
1,074.0

 
 
 
 
(a) 
As of March 31, 2015, the borrowing base and availability on our ABL Facility were $450.0 million and $84.2 million, respectively. The availability is calculated in accordance with the terms of the ABL Facility and is derived by reducing the borrowing base by our $365.8 million of outstanding letters of credit as of March 31, 2015. The amount which is actually able to be drawn is limited by certain financial covenants in the ABL Facility to $39.2 million.

As of December 31, 2014 (in millions)
Par Value
 
Premium/
(Discount)
 
Book
Value
 
Stated
Interest Rate
 
Average Effective
Interest Rate
Term Loan
$
693.0

 
$
(5.7
)
 
$
687.3

 
8.3
%
 
8.5
%
ABL Facility(a) 

 

 

 
N/A

 
N/A

Series B Notes
17.7

 
(0.6
)
 
17.1

 
10.0
%
 
25.6
%
Secured Second A&R CDA
47.0

 

 
47.0

 
3.3-18.3%

 
7.3
%
Unsecured Second A&R CDA
73.2

 

 
73.2

 
3.3-18.3%

 
7.3
%
Lease financing obligations
285.1

 

 
285.1

 
10.0-18.2%

 
12.0
%
Other
0.2

 

 
0.2

 
 
 
 
Total debt
$
1,116.2

 
$
(6.3
)
 
$
1,109.9

 
 
 
 
Current maturities of Term Loan
(7.0
)
 

 
(7.0
)
 
 
 
 
Current maturities of Series B Notes
(17.7
)
 
0.6

 
(17.1
)
 
 
 
 
Current maturities of lease financing obligations
(6.8
)
 

 
(6.8
)
 
 
 
 
Current maturities of other
(0.2
)
 

 
(0.2
)
 
 
 
 
Long-term debt
$
1,084.5

 
$
(5.7
)
 
$
1,078.8

 
 
 
 
(a) 
As of December 31, 2014, the borrowing base and availability on our ABL Facility were $445.5 million and $71.2 million, respectively. The availability is calculated in accordance with the terms of the ABL Facility and is derived by reducing the borrowing base by our $374.3 million of outstanding letters of credit as of December 31, 2014. The amount which is actually able to be drawn is limited by certain financial covenants in the ABL Facility to $27.1 million.


Series B Exchange

Our Series B Notes, which matured on March 31, 2015, were convertible into our common stock, at the conversion price per share of approximately $18.5334 and a conversion rate of 53.9567 common shares per $1,000 of the Series B Notes (such conversion price and conversion rate applying also to the Series B Notes make whole premium).

On March 25, 2015, we entered into an exchange agreement with certain holders of our Series B Notes to exchange their outstanding principal and accrued interest balances totaling $17.9 million at conversion price of $18.00 per share for an aggregate 994,689 shares of Common Stock. During the three months ended March 31, 2015, we recorded $0.6 million of additional expense related to the fair value of the incremental shares provided to those holders who exchanged their outstanding balances. At maturity on March 31, 2015, we repaid the holders of the remaining outstanding Series B Notes approximately $0.3 million of cash.

As discussed in the “2014 Financing Transactions” footnote, on January 31, 2014, certain holders of our Series B Notes exchanged their outstanding notes as part of an exchange agreement. Outside of these exchange agreements, during the three months ended March 31, 2014, $1.2 million of aggregate principal amount of Series B Notes were converted into 75,900 shares of our common stock, which includes the make whole premium.  Upon conversion, during the three months ended March 31, 2014, we recorded $0.4 million of additional interest expense representing the $0.2 million make whole premium and $0.2 million of accelerated amortization of the discount on converted Series B Notes.

Fair Value Measurement

The carrying amounts and estimated fair values of our long-term debt, including current maturities and other financial instruments, are summarized as follows:
 
 
March 31, 2015
 
December 31, 2014
(in millions)
Carrying amount
 
Fair Value
 
Carrying amount
 
Fair Value
Term Loan
$
685.9

 
$
681.6

 
$
687.3

 
$
685.4

Series B Notes

 

 
17.1

 
17.7

Lease financing obligations
282.7

 
282.7

 
285.1

 
282.2

Other
119.6

 
117.9

 
120.4

 
119.1

Total debt
$
1,088.2

 
$
1,082.2

 
$
1,109.9

 
$
1,104.4



The fair values of the Term Loan, ABL Facility, Series B Notes and the Secured and Unsecured A&R CDA (included in “Other” above) were estimated based on observable prices (level two inputs for fair value measurements). The fair value of the lease financing obligations is estimated using a publicly traded secured loan with similar characteristics (level three input for fair value measurement).