Cablevision 2011 Annual Report Download - page 169

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-45
Financial Covenants for the Restricted Group Credit Facility
The principal financial covenants for the Restricted Group credit facility are summarized below:
Maximum
Ratio of Total
Indebtedness to
Cash Flow(a)
Maximum Ratio
of Senior
Secured
Indebtedness to
Cash Flow(a)
Minimum
Ratio of Cash
Flow to Interest
Expense(a)
Minimum
Ratio of Cash
Flow Less Cash
Taxes to Total
Debt(a)
Revolving loan facility ........................
.
4.5 3.0 2.0 to 1 1.5 to 1
Extended revolving loan facility .........
.
4.5 3.0 2.0 to 1 1.5 to 1
Term A-3 extended loan facility .........
.
4.5 3.0 2.0 to 1 1.5 to 1
Term A-4 extended loan facility .........
.
4.5 3.0 2.0 to 1 1.5 to 1
Term B-2 extended loan facility(b) .....
.
5.0 4.5 n/a n/a
Term B-3 extended loan facility(b) .....
.
5.0 4.5 n/a n/a
______________
(a) As defined in each respective loan facility.
(b) Incurrence based only.
These covenants and restrictions on the permitted use of borrowed funds in the revolving loan facility
may limit CSC Holdings' ability to utilize all of the undrawn revolver funds. Additional covenants
include limitations on liens and the issuance of additional debt.
Under the Company's Restricted Group credit facility there are generally no restrictions on investments
that the Restricted Group may make, provided it is not in default; however, CSC Holdings must also
remain in compliance with the maximum ratio of total indebtedness to cash flow and the maximum ratio
of senior secured indebtedness to cash flow (each as defined in the Term A-1 loan facility). CSC
Holdings' ability to make restricted payments is also limited by provisions in the Term B loan facility,
Term B-2 extended loan facility, Term B-3 extended loan facility, and the indentures covering CSC
Holdings' notes and debentures.
The Restricted Group was in compliance with all of its financial covenants under the Restricted Group
credit facility as of December 31, 2011.
Bresnan Cable Credit Facility
Bresnan Cable has an $840,000 senior secured credit facility which is comprised of two components: a
$765,000 term loan facility and a $75,000 revolving loan facility (collectively, the "Bresnan Credit
Agreement"). In connection with the financing of the Bresnan acquisition in December 2010, the full
$765,000 amount of the term loan facility was drawn, net of an original issue discount of approximately
$7,700. The revolving loan facility, which includes a $25,000 sublimit for the issuance of standby letters
of credit and a $5,000 sublimit for swingline loans, was not drawn in connection with the transaction.
Such revolving loan facility is expected to be available to provide for ongoing working capital
requirements and for other general corporate purposes of the Company and its subsidiaries.
Borrowings under the Bresnan Credit Agreement bear interest at a floating rate, which at the option of
Bresnan Cable may be either 2.0% over a floating base rate or 3.0% over an adjusted LIBOR rate, subject
to a LIBOR floor of 1.50%. The Bresnan Credit Agreement requires Bresnan Cable to pay a commitment
fee of 0.75% in respect of the average daily unused commitments under the revolving loan facility.
Bresnan Cable is also required to pay customary letter of credit fees, as well as fronting fees, to banks that
issue letters of credit pursuant to the Bresnan Credit Agreement.