Debt
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Mar. 31, 2013
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Debt | 6. Debt Debt is comprised of the following at March 31, 2013 and December 31, 2012:
On March 14, 2013, the Company commenced a cash tender offer (the “Tender Offer”) to purchase any and all of the outstanding principal amount of its 8% Senior Notes due 2016 (the “Notes”). As of March 31, 2013, pursuant to the Tender Offer, the Company repurchased approximately $169 aggregate principal amount of the Notes for total consideration, excluding accrued interest, of $176. The remaining $131 aggregate principal amount of the Notes was repurchased on May 1, 2013 for total consideration, excluding accrued interest, of $136 (the “Redemption”). In March 2013, the Company entered into an amendment to its senior secured credit facility (the “Facility”), which resulted in, among other things, the Company borrowing an additional $250 under the existing senior secured term loan A portion of the Facility that matures in March 2016 and bears interest at LIBOR plus a spread of 200 basis points. Additionally, following the amendment, the existing senior secured term loan B portion of the Facility, which matures in March 2018, bears interest at LIBOR plus a spread of 250 basis points. The proceeds were used to fund the Tender Offer and the Redemption. During the three months ended March 31, 2013, the Company recorded a $17.1 loss on the extinguishment of debt related to the Tender Offer and the Facility amendment. This loss is primarily comprised of the tender premium, the write off of deferred debt issuance costs and debt discounts and other transaction costs. At March 31, 2013 and December 31, 2012, the carrying value of total debt approximates fair market value. The fair market value (Level 1 measurement) of the Senior Notes and Senior Subordinated Notes are based upon quoted market prices. The fair market value (Level 2 measurement) for all other debt instruments is estimated using interest rates currently available to the Company for debt with similar terms and maturities. |