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Long-Term Debt
9 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract]  
Long-Term Debt

Note 6.Long-Term Debt

 

As of September 30, 2014, long-term debt consisted of $1,300.0 aggregate principal amount ($1,312.7 inclusive of original issue premium) of its 5.25% Notes, which had an effective yield of approximately 5.0%, and $650.0 aggregate principal amount ($646.0 net of original issue discount) of 6.875% senior unsecured notes due 2020 (the “6.875% Notes). The Company also has a $1,400.0 revolving credit facility pursuant to  Amendment No.1 to the Second Amended and Restated Credit Agreement as of June 26, 2014 (the “Revolving Credit Facility”), $668.0 of which was drawn at September 30, 2014. The amendment to increase the size of the Revolving Credit Facility from $950.0 to $1,400.0 did not change any other material terms under the agreement. The Revolving Credit Facility matures in August 2017 unless terminated earlier.

 

Borrowings under the Revolving Credit Facility bear interest at an annual rate equal to the London interbank offered rate (“LIBOR”) (as defined in the Revolving Credit Facility) plus 200 basis points or Prime (as defined in the Revolving Credit Facility) plus 100 basis points. As of September 30, 2014, the rate under the Revolving Credit Facility was approximately 2.22%.  

 

Letters of credit outstanding under the Revolving Credit Facility aggregated $6.9 at September 30, 2014 ($6.1 at December 31, 2013).

 

The Revolving Credit Facility contains an interest coverage ratio financial covenant (as defined therein) that must be maintained at a level greater than 2.0 to 1 and a total leverage ratio covenant (as defined therein) which limits net debt to a 4.25 to 1 multiple of EBITDA (as defined therein). The Revolving Credit Facility is collateralized by substantially all of the Company’s assets and contains customary affirmative covenants, negative covenants and conditions precedent for borrowings, all of which were met as of September 30, 2014.