CDW 2014 Annual Report Download - page 88

Table of Contents CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CDW LLC and CDW Finance Corporation are the co-issuers of the 2024 Senior Notes and the obligations under the notes are
guaranteed by Parent and each of CDW LLC's direct and indirect, wholly owned, domestic subsidiaries. The 2024 Senior Notes
indenture contains negative covenants that, among other things, place restrictions and limitations on the ability of Parent and each of
CDW LLC's direct and indirect, 100% owned, domestic subsidiaries to enter into sale and lease-back transactions, incur additional
secured indebtedness, and create liens. The indenture governing the 2024 Senior Notes does not contain any financial covenants.
12.535% Senior Subordinated Exchange Notes due 2017 (“Senior Subordinated Notes”)
At December 31, 2014 , there were no outstanding Senior Subordinated Notes.
On May 9, 2014, the Company redeemed all of the remaining $42.5 million
aggregate principal amount of Senior Subordinated Notes at
a redemption price that was 104.178% of the principal amount redeemed. Cash on hand was used to fund the redemption of $42.5
million aggregate principal amount, $1.8 million in redemption premium and $0.4 million in accrued and unpaid interest to the date of
redemption. In connection with this redemption, the Company recorded a loss on extinguishment of long-term debt of $2.2 million in
the consolidated statement of operations for the year ended December 31, 2014 . This loss represented $1.8 million in redemption
premium and $0.4 million for the write-off of the remaining deferred financing costs related to the Senior Subordinated Notes.
On January 22, 2014 and February 21, 2014, the Company redeemed $30.0 million and $20.0 million aggregate principal amounts of
Senior Subordinated Notes, respectively, at redemption prices that were 104.178% of the principal amounts redeemed. Cash on hand
was used to fund the redemptions of $50.0 million aggregate principal amount, $2.1 million in redemption premiums and $1.9 million
in aggregate accrued and unpaid interest to the dates of redemption. In connection with these redemptions, the Company recorded a loss
on extinguishment of long-term debt of $2.7 million in the consolidated statement of operations for the year ended December 31, 2014
.
This loss represented $2.1 million in redemption premiums and $0.6 million for the write-off of a portion of the remaining deferred
financing costs related to the Senior Subordinated Notes.
On October 18, 2013, the Company redeemed $155.0 million
aggregate principal amount of Senior Subordinated Notes at a redemption
price that was 104.178%
of the principal amount redeemed. A combination of cash on hand and the net proceeds from the sale of shares
of common stock related to the underwriters' exercise in full of the overallotment option granted to them in connection with the IPO, in
the amount of $56.0 million , was used to fund the redemption of $155.0 million aggregate principal amount, $6.5 million of
redemption premium and $0.2 million in accrued and unpaid interest to the date of redemption. See Note 9 for additional discussion of
the underwriters' overallotment option. In connection with this redemption, the Company recorded a loss on extinguishment of long-
term debt of $8.5 million in the Company's consolidated statement of operations for the year ended December 31, 2013. This loss
represented $6.5 million in redemption premium and $2.0 million for the write-off of a portion of the remaining unamortized deferred
financing costs related to the Senior Subordinated Notes.
On August 1, 2013, the Company redeemed $324.0 million aggregate principal amount of Senior Subordinated Notes at a redemption
price that was 106.268% of the principal amount redeemed. The Company used a portion of the net proceeds from the IPO to redeem
$146.0 million aggregate principal amount of Senior Subordinated Notes and incremental borrowings of $190.0 million under the Term
Loan to redeem $178.0 million aggregate principal amount of Senior Subordinated Notes. The Company used cash on hand to pay
$12.0 million of accrued and unpaid interest to the date of redemption. In connection with this redemption, the Company recorded a
loss on extinguishment of long-term debt of $24.6 million in the consolidated statement of operations for the year ended December 31,
2013. This loss represented $20.3 million in redemption premium and $4.3 million for the write-off of a portion of the remaining
deferred financing costs related to the Senior Subordinated Notes.
On March 8, 2013, the Company redeemed $50.0 million aggregate principal amount of Senior Subordinated Notes at a redemption
price that was 106.268% of the principal amount redeemed. Cash on hand was used to fund the redemption of $50.0 million aggregate
principal amount, $3.1 million of redemption premium and $2.5 million in accrued and unpaid interest to the date of redemption. In
connection with this redemption, the Company recorded a loss on extinguishment of long-term debt of $3.9 million in the Company's
consolidated statement of operations for the year ended December 31, 2013. This loss represented $3.1 million in redemption premium
and $0.8 million for the write-off of a portion of the remaining unamortized deferred financing costs related to the Senior Subordinated
Notes.
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