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Subsequent Events
6 Months Ended
Jun. 30, 2013
Subsequent Events  
Subsequent Events

Note 14—Subsequent Events

Credit Agreement Amendment

        On July 23, 2013, the Company entered into an amendment (the "Fifth Amendment") to the 2011 Credit Agreement dated as of April 1, 2011, as amended by the First Amendment to Credit Agreement, dated as of January 20, 2012, the Second Amendment to Credit Agreement, dated as of August 16, 2012, the Third Amendment to Credit Agreement dated as of October 29, 2012, and as further amended by the Fourth Amendment to Credit Agreement, dated as of March 22, 2013, among the Company, the various lenders, Morgan Stanley Senior Funding, Inc. as administrative agent, and other agents named therein. The Fifth Amendment provides for, among other things:

  • increased interest margins of 1.00% from their existing levels;

    less restrictive interest expense coverage ratio and suspension of compliance until March 31, 2015;

    less restrictive senior secured leverage ratio and suspension of compliance until June 30, 2014;

    an additional minimum liquidity covenant of $225.0 million that applies at the end of each fiscal quarter through June 30, 2014 and at any time thereafter when the senior secured leverage ratio is greater than 5.50:1.00;

    an additional capital expenditures covenant limiting capital expenditures to $175.0 million in 2013 and $200.0 million in 2014 with a potential that up to $20.0 million in unused 2013 capital spending may be carried forward and utilized in the succeeding fiscal year increasing the 2014 capital spending limit up to $220.0 million;

    modifies the requirement that 100% of the net cash proceeds from the incurrence or issuance of unsecured indebtedness shall be applied as a mandatory repayment to exclude the mandatory repayment requirement for the first $250.0 million of such indebtedness; and

    a restriction on cash dividends allowed in any fiscal quarter when the secured leverage ratio exceeds 4.50:1.00.

Quarterly Dividend

        In connection with the Fifth Amendment and in light of current market conditions, on July 23, 2013 the Company announced that its Board of Directors determined to reduce its regular quarterly dividend to $0.01 per share from the most recent quarterly dividend of $0.125 per share.