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Table of Contents
in cash outflows of $569.4 million and $310.6 million during 2013 and 2012, respectively, as cash was used in each period to reduce our total
long-term debt.
Long
-Term Debt and Financing Arrangements
As of December 31, 2014, we had total indebtedness of $ 3.2 billion , of which $1.5 billion was secured indebtedness.
At December 31, 2014, we were in compliance with the covenants under our various credit agreements and indentures. Under the
indenture governing the 8.5% Senior Notes due 2019, which contains the most restrictive restricted payment provisions in our various credit
agreements and indentures, we are generally restricted from paying dividends and making other restricted payments. For the purpose of
determining restricted payment capacity, consolidated net income or loss includes certain adjustments that are defined in the applicable
indenture. At December 31, 2014, the amount of cumulative consolidated net income free of restrictions under our credit agreements and
indentures was $230.3 million .
See Note 7 to the accompanying audited consolidated financial statements included elsewhere in this report for further details regarding
our debt and each of the transactions described below.
During the year ended December 31, 2014, the following events occurred with respect to our debt structure:
Inventory Financing Agreements
We have entered into agreements with certain financial intermediaries to facilitate the purchase of inventory from various suppliers
under certain terms and conditions. These amounts are classified separately as accounts payable-inventory financing on the consolidated balance
sheets. We do not incur any interest expense associated with these agreements as balances are paid when they are due. See Note 5 to the
accompanying audited consolidated financial statements included elsewhere in this report for further details.
Contractual Obligations
We have future obligations under various contracts relating to debt and interest payments, operating leases and asset retirement
obligations. The following table presents our estimated future payments under contractual obligations that existed as of December 31, 2014,
based on undiscounted amounts.
53
• On January 22, 2014 and February 21, 2014, we redeemed $30.0 million and $20.0 million aggregate principal amounts of the
12.535% Senior Subordinated Exchange Notes due 2017, respectively.
• On March 20, 2014, we repurchased and subsequently canceled $25.0 million
aggregate principal amount of the 8.5% Senior Notes
due 2019 from an affiliate of Providence Equity in a privately-negotiated transaction on an arms’ length basis.
• On May 9, 2014, we redeemed all of the remaining $42.5 million aggregate principal amount of the 12.535% Senior Subordinated
Exchange Notes due 2017.
• On June 6, 2014, we entered into a new five-year $1,250.0 million senior secured asset-based revolving credit facility which will
mature on June 6, 2019.
•
On August 5, 2014, we completed the issuance of $600.0 million aggregate principal amount of 6.0% Senior Notes due 2022 which
will mature on August 15, 2022.
• On September 5, 2014, we redeemed all of the remaining $325.0 million aggregate principal amount of the 12.535% Senior
Subordinated Exchange Notes due 2017, plus accrued and unpaid interest through the date of redemption.
• On September 5, 2014, we redeemed $234.7 million aggregate principal amount of the 8.5% Senior Notes due 2019, plus accrued
and unpaid interest through the date of redemption.
• On December 1, 2014, we completed the issuance of $575.0 million principal amount of 5.5% Senior Notes due 2024 which will
mature on December 1, 2024.
• On December 31, 2014, we redeemed $541.4 million aggregate principal amount of the 8.5% Senior Notes due 2019, plus accrued
and unpaid interest through the date of redemption.