Long-Term Debt

3 Months Ended

Mar. 31, 2012

Long-Term Debt [Abstract]

Long-Term Debt

Note 4 – Long-Term Debt

Long-term debt consists of the following (in thousands):

	March 31, 2012		December 31, 2011
9.125% notes	$	730,000	$	730,000
Borrowings under the ABL facilities		72,513		74,000
Total long-term debt	$	802,513	$	804,000

9.125% Senior Secured Notes due 2017

In October 2010, the Company and AMH New Finance, Inc. (collectively, the “Issuers”) issued and sold $730.0 million of 9.125% Senior Secured Notes due 2017 (the “9.125% notes” or the “notes”). The notes bear interest at a rate of 9.125% per annum and are unconditionally guaranteed, jointly and severally, by each of the Issuers’ direct and indirect domestic subsidiaries that guarantees the Company’s obligations under the senior secured asset-based revolving credit facilities (the “ABL facilities”). Interest payments are remitted on a semi-annual basis with the next payment due on May 1, 2012.

The Company completed the exchange of all outstanding privately placed 9.125% notes for newly registered notes in July 2011. These notes have an estimated fair value of $709.9 million and $636.9 million based on quoted market prices as of March 31, 2012 and December 31, 2011, respectively.

ABL Facilities

In October 2010, the Company entered into the ABL facilities in the amount of $225.0 million (comprised of a $150.0 million U.S. facility and a $75.0 million Canadian facility) pursuant to a revolving credit agreement maturing in 2015 (the “Revolving Credit Agreement”). The revolving credit loans under the Revolving Credit Agreement bear interest at the rate of (1) LIBOR (for eurodollar loans under the U.S. facility) or CDOR (for loans under the Canadian facility), plus an applicable margin of 2.75% as of March 31, 2012, (2) the alternate base rate (which is the highest of a prime rate, the Federal Funds Effective Rate plus 0.50% and a one-month LIBOR rate plus 1.0% per annum), plus an applicable margin of 1.75% as of March 31, 2012, or (3) the alternate Canadian base rate (which is the higher of a Canadian prime rate and the 30-day CDOR Rate plus 1.0%), plus an applicable margin of 1.75% as of March 31, 2012.

As of March 31, 2012, there was $72.5 million drawn under the Company’s ABL facilities and $54.3 million available for additional borrowings. As of April 2, 2011, there was $94.2 million drawn under the Company’s ABL facilities. The per annum interest rate applicable to borrowings under the U.S. portion of the ABL facilities was 3.4% as of March 31, 2012 and April 2, 2011. As of March 31, 2012, the per annum interest rates applicable to borrowings under the Canadian portion of the ABL facilities were in the range of 4.7% and 5.0%. As of April 2, 2011, the per annum interest rates ranged under the Canadian portion of the ABL facilities from 3.0% to 4.8%. The weighted average interest rate for borrowings under the ABL facilities was 3.7% for the quarter ended March 31, 2012 and 3.9% for the quarter ended April 2, 2011. The Company had letters of credit outstanding of $7.5 million and $7.3 million as of March 31, 2012 and April 2, 2011, respectively, primarily securing deductibles of various insurance policies.

On April 26, 2012, the ABL facilities were amended. See Note 11 – Subsequent Event for further discussion.