XML 37 R10.htm IDEA: XBRL DOCUMENT

Long-Term Debt

12 Months Ended

Dec. 31, 2011

4.	Long-Term Debt

Long-term debt consisted of the following:


	December 31,
	2011		2010
	(In thousands)
Credit Agreement:
Term loan	$	58,500	$	—
Revolving credit facility		9,500		—
Reducing revolver facility		—		95,000
Secured debt of affiliate		1,078		1,078

		69,078		96,078
Amounts payable within one year		3,000		6,121

	$	66,078	$	89,957

Future maturities of long-term debt are as follows:


Year Ending December 31,	(In thousands)
2012	$	3,000
2013		3,000
2014		4,078
2015		3,000
2016		56,000
Thereafter		—

	$	69,078

On June 13, 2011, we entered into a new $120 million credit facility ($118.5 million at December 31, 2011) (the “Credit Facility”) with a group of banks, to refinance our outstanding debt under our credit agreement that was maturing on July 29, 2012 (the “Old Credit Agreement”). The Credit Facility consisted of a $60 million term loan ($58.5 million at December 31, 2011) (the “Term Loan”) and a $60 million revolving loan (the “Revolving Credit Facility”) and matures on June 13, 2016.

The proceeds from the Credit Facility were used to refinance our Old Credit Agreement and pay transactional fees.

We wrote-off unamortized debt issuance costs relating to the Old Credit Agreement of approximately $1.3 million, pre-tax, due to this refinancing during the quarter ended June 30, 2011.

We had approximately $50.5 million of unused borrowing capacity under the Revolving Credit Facility at December 31, 2011. The unused portion of the Revolving Credit Facility is available for general corporate purposes, including working capital, capital expenditures, permitted acquisitions and related transaction expenses and permitted stock buybacks.

The Term Loan principal amortizes in equal installments of 5% of the Term Loan during each year, however, upon satisfaction of certain conditions, as defined in the Credit Facility, no amortization payment is required. The Credit Facility is also subject to mandatory prepayment requirements, including but not limited to, certain sales of assets, certain insurance proceeds, certain debt issuances and certain sales of equity. Optional prepayments of the Credit Facility are permitted without any premium or penalty, other than certain costs and expenses.

Interest rates under the Credit Facility are payable, at our option, at alternatives equal to LIBOR (0.296% at December 31, 2011) plus 1.50% to 2.75% or the base rate plus 0.50% to 1.75%. The spread over LIBOR and the base rate vary from time to time, depending upon our financial leverage. We also pay quarterly commitment fees of 0.25% to 0.375% per annum on the unused portion of the Revolving Credit Facility.

We have pledged substantially all of our assets (excluding our FCC licenses and certain other assets) in support of the Credit Facility and each of our subsidiaries has guaranteed the Credit Facility and has pledged substantially all of their assets (excluding their FCC licenses and certain other assets) in support of the Credit Facility.

The Credit Facility contains a number of financial covenants (all of which we were in compliance with at December 31, 2011) which, among other things, require us to maintain specified financial ratios and impose certain limitations on us with respect to investments, additional indebtedness, dividends, distributions, guarantees, liens and encumbrances.

Our Old Credit Agreement was a revolving line of credit maturing on July 29, 2012. Our indebtedness under the Old Credit Agreement was secured by a first priority lien on substantially all of our assets and of our subsidiaries, by a pledge of our subsidiaries’ stock and by a guarantee of our subsidiaries. The Old Credit Agreement was used for general corporate purposes, including working capital and capital expenditures.

Interest rates under the Old Credit Agreement were payable, at our option, at alternatives equal to LIBOR at the reset date (0.3125% at December 31, 2010) plus 3.00% to 4.25% or the Agent bank’s base rate plus 2.00% to 3.25%. The spread over LIBOR and the base rate vary from time to time, depending upon our financial leverage. We were also required to pay quarterly commitment fees of 0.375% to 0.625% per annum on the unused portion of the Old Credit Agreement.

In June 2011, approximately $1.1 million of secured debt of an affiliate was amended to extend the maturity date to May 2014.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details