Debt - LIN Television

9 Months Ended

Sep. 30, 2012

Debt

Note 5 — Debt

We guarantee all of LIN Television’s debt.  All of the consolidated 100% owned subsidiaries of LIN Television fully and unconditionally guarantee LIN Television’s senior secured credit facility and 83/8% Senior Notes due 2018 (the “83/8% Senior Notes”), on a joint-and-several basis.

Debt consisted of the following (in thousands):

	September 30, 2012		December 31, 2011
Senior Secured Credit Facility:
Revolving credit loans	$	—	$	35,000
$125,000 Term loans, net of discount of $530 and $604 as of September 30, 2012 and December 31, 2011, respectively	124,470		124,396
$258,050 and $260,000 Incremental term loans, net of discount of $2,328 and $2,594 as of September 30, 2012 and December 31, 2011, respectively	255,722		257,406
83/8% Senior Notes due 2018	200,000		200,000
61/2% Senior Subordinated Notes due 2013	—		166,773
$85,426 6½% Senior Subordinated Notes due 2013 - Class B, net of discount of $1,228 as of December 31, 2011	—		84,198
Other debt	738		944
Total debt	580,930		868,717
Less current portion	7,547		253,856
Total long-term debt	$	573,383	$	614,861

During the three and nine months ended September 30, 2012, we paid $0.7 million and $2 million, respectively, of principal on the incremental term loans related to mandatory quarterly payments under our senior secured credit facility.

On October 12, 2012, LIN Television completed the issuance and sale of its 63/8% Senior Notes in an aggregate principal amount of $290 million, and used the net proceeds of such notes to fund the remaining purchase price for the Acquisition as further described in Note 2 — “Acquisitions”.  Additionally, on October 12, 2012, Vaughan, which we expect to be a consolidated VIE, entered into a five-year term loan with an unrelated third party in a principal amount of approximately $4.6 million to fund the purchase price for the television stations from PBC that were acquired by Vaughan.  LIN Television fully and unconditionally guarantees this loan.  For further information see Note 13 — “Subsequent Events”.

On January 20, 2012, we completed the redemption of $251 million, net of a discount of $1.2 million, of our 6½% Senior Subordinated Notes and 6½% Senior Subordinated Notes — Class B using the proceeds of an incremental term loan funded in December 2011 and cash on hand.  As a result of this redemption, we recorded a loss on extinguishment of debt of $2.1 million to our consolidated statement of operations during the nine months ended September 30, 2012, consisting of a write-down of deferred financing fees and unamortized discount.

During the nine months ended September 30, 2011, we recorded a loss on extinguishment of debt of $0.2 million to our consolidated statements of operations, consisting of a write-down of deferred financing fees related to a reduction in our revolving credit commitments and the payment of the remaining balance on our term loans under our 2009 senior secured credit facility.

The fair values of our long-term debt are estimated based on Level 2 inputs of the three-level fair value hierarchy, including quoted market prices for the same issues, or based on the current rates offered to us for our debt.  The carrying amounts and fair values of our long-term debt were as follows (in thousands):

	September 30,2012		December 31,2011
Carrying amount	$	580,930	$	868,717
Fair value	595,865		860,164

LIN Television Corporation

Debt

Note 5 — Debt

LIN TV guarantees all of our debt.  All of the consolidated 100% owned subsidiaries of LIN Television fully and unconditionally guarantee LIN Television’s senior secured credit facility and 83/8% Senior Notes due 2018 (the “83/8% Senior Notes”), on a joint-and-several basis.

Debt consisted of the following (in thousands):

	September 30, 2012		December 31, 2011
Senior Secured Credit Facility:
Revolving credit loans	$	—	$	35,000
$125,000 Term loans, net of discount of $530 and $604 as of September 30, 2012 and December 31, 2011, respectively	124,470		124,396
$258,050 and $260,000 Incremental term loans, net of discount of $2,328 and $2,594 as of September 30, 2012 and December 31, 2011, respectively	255,722		257,406
83/8% Senior Notes due 2018	200,000		200,000
6½% Senior Subordinated Notes due 2013	—		166,773
$85,426 6½% Senior Subordinated Notes due 2013 - Class B, net of discount of $1,228 as of December 31, 2011	—		84,198
Other debt	738		944
Total debt	580,930		868,717
Less current portion	7,547		253,856
Total long-term debt	$	573,383	$	614,861

During the three and nine months ended September 30, 2012, we paid $0.7 million and $2 million, respectively, of principal on the incremental term loans related to mandatory quarterly payments under our senior secured credit facility.

On October 12, 2012, LIN Television completed the issuance and sale of its 63/8% Senior Notes in an aggregate principal amount of $290 million, and used the net proceeds of such notes to fund the remaining purchase price for the Acquisition as further described in Note 2 — “Acquisitions”.  Additionally, on October 12, 2012, Vaughan, which we expect to be a consolidated VIE, entered into a five-year term loan with an unrelated third party in a principal amount of approximately $4.6 million to fund the purchase price for the television stations from PBC that were acquired by Vaughan.  LIN Television fully and unconditionally guarantees this loan.  For further information see Note 13 — “Subsequent Events”.

On January 20, 2012, we completed the redemption of $251 million, net of a discount of $1.2 million, of our 6½% Senior Subordinated Notes and 6½% Senior Subordinated Notes — Class B using the proceeds of an incremental term loan funded in December 2011 and cash on hand.  As a result of this redemption, we recorded a loss on extinguishment of debt of $2.1 million to our consolidated statement of operations during the nine months ended September 30, 2012, consisting of a write-down of deferred financing fees and unamortized discount.

During the nine months ended September 30, 2011, we recorded a loss on extinguishment of debt of $0.2 million to our consolidated statements of operations, consisting of a write-down of deferred financing fees related to a reduction in our revolving credit commitments and the payment of the remaining balance on our term loans under our 2009 senior secured credit facility.

The fair values of our long-term debt are estimated based on Level 2 inputs of the three-level fair value hierarchy, including quoted market prices for the same issues, or based on the current rates offered to us for our debt.  The carrying amounts and fair values of our long-term debt were as follows (in thousands):

	September 30,2012		December 31,2011
Carrying amount	$	580,930	$	868,717
Fair value	595,865		860,164