-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Eu9ORIbpJBIomkFjAfVt9S2U4hFIEcy92NBqft6IZRGQHxadSiWaSkxdXu95EYc1 DrtzQ8U46AF0cZgnZPd+Vw== 0000950109-95-001480.txt : 19950501 0000950109-95-001480.hdr.sgml : 19950501 ACCESSION NUMBER: 0000950109-95-001480 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950428 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950428 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPECTRAVISION INC CENTRAL INDEX KEY: 0000819898 STANDARD INDUSTRIAL CLASSIFICATION: CABLE & OTHER PAY TELEVISION SERVICES [4841] IRS NUMBER: 752182004 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09724 FILM NUMBER: 95532418 BUSINESS ADDRESS: STREET 1: 1501 N PLANO RD STREET 2: P.O.BOX 830775 CITY: RICHARDSON STATE: TX ZIP: 75083-0775 BUSINESS PHONE: 2142342721 MAIL ADDRESS: STREET 1: 1501 N PLANO RD STREET 2: P O BOX 830775 CITY: RICHARDSON STATE: TX ZIP: 75083-0775 FORMER COMPANY: FORMER CONFORMED NAME: SPI HOLDING INC DATE OF NAME CHANGE: 19940906 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) APRIL 28, 1995 SPECTRAVISION, INC. (Exact Name of Registrant as Specified in its Charter) DELAWARE 1-9724 75-2182004 (State of Incorporation) (Commission File Number) (I.R.S. Employee Identification No.)
1501 NORTH PLANO ROAD, RICHARDSON, TEXAS 75083-0775 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (214) 234-2721 d-0197488.01 ITEM 5. OTHER EVENTS ------------ Attached as Exhibit 1 is a proposed restructuring plan for SpectraVision, Inc. (the "Company") that was delivered to certain holders of the Company's 11.50% senior discount notes due 2001 and 11.65% senior subordinated reset notes due 2002 at a meeting on April 28, 1995. There can be no assurance that an agreement with the Company's creditors and other necessary parties on any proposed restructuring plan will be reached or that any proposed restructuring plan will be implemented. The terms of any restructuring plan may vary substantially from the terms contained in Exhibit 1. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS --------------------------------- Exhibit 1- Restructuring Proposal Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SPECTRAVISION, INC. Date: April 28, 1995 By:/s/ Richard M. Gozia ------------------------------ Richard M. Gozia Executive Vice President and Chief Financial Officer EX-1 2 RESTRUCTURING OVERVIEW EXHIBIT 1 RESTRUCTURING OVERVIEW * Accounts payable: 100% assumed * Bank debt: 100% assumed or refinanced * $18.1 million capitalized lease obligations (non-EDS): 100% assumed * $24.0 million lease obligations (EDS): 100% assumed, with extended payment terms 1 RESTRUCTURING OVERVIEW (CONT'D) * $177.2/(1)/ million Senior Discount Notes due 2001: $75 million New Senior Discount Notes due 2003 and 50% of the primary common stock * $307.2/(1)/ million Senior Subordinated Reset Notes due 2002: 35% of the primary common stock * $33.9 million EDS Unsecured Claim: 15.0% of the primary common stock/(2)/ * CVRs: warrants to purchase 1.0% of the fully-diluted common stock/(3)/ * Common Stock: warrants to purchase 3.5% (combined total for both A & B classes) of the fully-diluted common stock/(3)/ - ---------------- (1) Estimated accreted amount at March 31, 1995. (2) In conjunction with and as partial consideration for providing a capital lease facility to deploy STARPATH technology. (3) Warrants assumed to be struck at market 2 CAPITALIZATION -------------- ($ in millions) ---------------
AT MARCH 31, 1995 (UNAUDITED) ----------------------------------- ESTIMATED PRO FORMA ------------- -------------- EDS Unsecured Payable $ 33.9 $ 0.0 ====== ====== Bank Credit Facility............... $ 19.9 $ 19.9 11.5% Senior Discount Notes........ 177.2 0.0 11.65% Senior Subordinated Reset Notes..................... 307.2 0.0 New 11.5% Senior Discount Notes.... 0.0 75.0 Non-EDS Capital Leases............. 18.1 18.1 EDS Leases......................... 24.0 24.0 ------ ------ Total Long-Term Debt........... $546.4 $137.0 ====== ====== 1994 EBITDA........................ $ 19.1 $ 19.1 Normalized EBITDA.................. 30.0 30.0 Debt/1994 EBITDA................... 28.6X 7.2X Debt/Normalized EBITDA............. 18.2 4.6
- ---------------- 3 PRO FORMA CREDIT SUMMARY ------------------------ ($ in millions) ---------------
PROJECTED AT DECEMBER 31,/(1)/ ------------------------------------------------------------------------------ 1995 1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- -------- EBITDA........................................ $ 24.2 $ 30.5 $ 37.4 $ 41.3 $ 47.7 $ 54.2 Capital Expenditures.......................... 41.6 32.9 28.3 25.8 19.6 17.7 Capital Lease Amortization.................... 10.2 9.1 8.7 8.7 6.5 0.0 Interest Expense.............................. 15.7 20.9 24.0 26.2 27.0 25.9 Cash Interest Expense......................... 6.9 11.0 12.9 13.8 13.1 25.9 Bank Debt and Capital Lease Balance........... 99.3 112.7 116.5 114.8 99.8 89.1 Total Debt.................................... 183.2 206.5 221.4 232.1 231.0 220.3 EBITDA/Interim Expense........................ 1.5x 1.5x 1.6x 1.6x 1.8x 2.1x EBITDA/Cash Interest Expense.................. 3.5x 2.8x 2.9x 3.0x 3.6x 2.1x EBITDA-CapEx/Interest Expense................. NM* NM 0.4x 0.6x 1.0x 1.4x EBITDA-CapEx/Cash Interest Expense............ NM NM 0.7x 1.1x 2.1x 1.4x EBITDA-CapEx-Cap. Lease Amort./Int. Exp....... NM NM NM 0.3x 0.8x 1.4x EBITDA-CapEx-Cap. Lease Amort./Cash Int. Exp.. NM NM NM 0.5x 1.6x 1.4x Debt/EBITDA................................... 7.6x 6.8x 5.9x 5.6x 4.8x 4.1x - ---------------------------
(1) Projections assume issuance of the new $75 million 11.5% Senior Discount Notes on January 1, 1995 * NM means not material 4 NEW SENIOR DISCOUNT NOTES ------------------------- SUMMARY OF TERMS ---------------- ISSUER: SpectraVision (the "Company") ISSUE: Senior Discount Notes (the "Notes") MATURITY: 2003 (8 years) COUPON RATE: 11.50% payable semi-annually. Interest on the Notes will be non-cash for five years. Thereafter, interest will be paid semi-annually in cash based on the fully accreted principal amount. ACCRETED VALUE AT ISSUANCE: $75.0 million PRINCIPAL AMOUNT: $131.2 million GUARANTEE: The Notes will be guaranteed on a senior unsecured basis by Spectradyne. SECURITY: Secured by the stock of Spectradyne. OPTIONAL REDEMPTION: The Notes will be non-callable for five years. Thereafter, the Company will have the option to redeem the Notes, in whole or in part, at a premium to fully-accreted value plus accrued and unpaid interest, declining to par at maturity. MANDATORY REDEMPTION: None COVENANTS: * Limitations on Additional Debt * Limitations on Mergers and Asset Sales * Put Upon Change of Control * Limitations on Restricted Payments 5 CALCULATION OF "NORMALIZED" EBITDA ---------------------------------- ($ in millions) --------------- 1994 Reported EBITDA............................ $19.1 Plus: Reduction in Technical Adjustments/(1)//(2)/.. $ 5.7 Reduction in Non-Operating Rooms/(1)//(3)/.... 3.0 Nonrecurring Expenses-Net..................... 2.2 ----- 1994 Normalized EBITDA..................... $30.0 =====
- ---------------- (1) Based on combined hotel share and studio share of approximately 29.3%. (2) Assumes a reduction in the percentage of technical adjustments from 13.9% to 7.0% due to the implementation of STARPATH technology. (3) Assumes a decrease in the percentage of non-operating rooms from 8.0% to 4.0% because the Company will be resuming field service responsibilities. 6 EQUITY VALUES BASED ON "NORMALIZED" EBITDA ------------------------------------------ ($ in millions) ---------------
AT MARCH 31, 1995 ----------------------------- LodgeNet EBITDA Multiple....... 8.4x 8.4x 8.4x Discount Factor................ 25.0% 10.0% 0.0% Adjusted Multiple............ 6.3x 7.6x 8.4x Normalized Annual EBITDA....... $ 30.0 $ 30.0 $ 30.0 ------ ------ ------ Total Enterprise Value....... $190.1 $228.1 $253.5 Less: Pro Forma Debt Outstanding Bank Credit Facility......... (19.9) (19.9) (19.9) New Senior Discount Notes.... (75.0) (75.0) (75.0) Leases EDS........................ (24.0) (24.0) (24.0) Other...................... (18.1) (18.1) (18.1) ------ ------ ------ Total Debt................... (137.0) (137.0) (137.0) Less: Restructuring Expenses... (10.0) (10.0) (10.0) Plus: Cash..................... 1.3 1.3 1.3 ------ ------ ------ Net Equity Value............. $ 44.5 $ 82.5 $107.8 ====== ====== ======
7 RECOVERIES BASED ON "NORMALIZED" EBITDA --------------------------------------- ($ in millions) ---------------
AT MARCH 31, 1995 ------------------------------------------------ Adjusted Multiple/(1)/........................... 6.3x 7.6x 8.4x Implied Net Equity Value......................... $44.5 $82.5 $107.8 ===== ===== ====== RECOVERY TO 11.5% SENIOR DISCOUNT NOTEHOLDERS New Senior Discount Notes........................ $75.0 $75.0 $ 75.0 Equity Value (50.0% Split)....................... 22.2 41.2 53.9 ----- ----- ------ Total.......................................... $97.2 $116.2 $128.9 ===== ====== ====== Recovery as a Percent of Claim/(2)/.............. 54.9% 65.6% 72.8% RECOVERY TO 11.65% SENIOR SUBORDINATED NOTEHOLDERS Equity Value (35.0% Split)....................... $15.6 $28.9 $37.7 ===== ===== ===== Recovery as a Percent of Claim/(2)/.............. 5.1% 9.4% 12.3% Relative Recovery................................ 10.8x 7.0x 5.9x RECOVERY TO EDS UNSECURED CLAIM Equity Value (15.0% Split)....................... $ 6.7 $12.4 $16.2 ===== ===== ===== Recovery as a Percent of Claim................... 19.7% 36.5% 47.8%
- ---------------- (1) Based on a 25.0%, 10.0%, and 0% discount, respectively, to LodgeNet's multiple. (2) Includes accrued interest to March 31, 1995. Recovery to 11.5% Senior Discount Noteholders and 11.65% Senior Subordinated Noteholders based on principal amounts of $177.2 million and $307.2 million, respectively. 8 -----END PRIVACY-ENHANCED MESSAGE-----