Cablevision 2011 Annual Report Download - page 84

(78)
Restricted Group
As of December 31, 2011, CSC Holdings and those of its subsidiaries which conduct our cable television
video operations and high-speed data service, and our VoIP services operations in the New York
metropolitan service area, as well as Optimum Lightpath, our commercial data and voice service business,
comprise the "Restricted Group" as they are subject to the covenants and restrictions of the credit facility
and indentures governing the notes and debentures issued by CSC Holdings. In addition, the Restricted
Group is also subject to the covenants of the debt issued by Cablevision.
Sources of cash for the Restricted Group include primarily cash flow from the operations of the
businesses in the Restricted Group, borrowings under its credit facility and issuance of securities in the
capital markets and, from time to time, distributions or loans from its subsidiaries. The Restricted
Group's principal uses of cash include: capital spending, in particular, the capital requirements associated
with the growth of its services such as digital video, high-speed data and voice (including enhancements
to its service offerings such as a broadband wireless network (WiFi)); debt service, including distributions
made to Cablevision to service interest expense on its debt securities; distributions to Cablevision to fund
dividends paid to stockholders of CNYG Class A and CNYG Class B common stock; distributions to
Cablevision to fund share repurchases; other corporate expenses and changes in working capital; and
investments that it may fund from time to time. We currently expect that the net funding and investment
requirements of the Restricted Group for the next 12 months will be met with one or more of the
following: cash on hand, cash generated by operating activities and available borrowings under the
Restricted Group's credit facility.
Amendment and Restatement of Credit Facility
Credit Agreement
On April 13, 2010, CSC Holdings and certain of its subsidiaries, the "Restricted Subsidiaries", entered
into an amended credit agreement (the "Credit Agreement"), providing for (i) an amendment and
restatement of the credit agreement, dated as of February 24, 2006, as first amended and restated in its
entirety as of May 27, 2009 and further amended and restated in its entirety as of April 13, 2010, and
(ii) an amendment to the incremental term supplement, dated as of March 29, 2006 and amended as of
May 27, 2009.
Among other things, the Credit Agreement provides for the specific mechanics of extending, from time to
time, the revolving credit commitments, term A loans, incremental term loans and any additional facility
commitments or additional facility loans, as applicable, with the terms of such extended facility to be
documented at the time of such extension in an extended facility agreement. Under the terms of the
Credit Agreement, CSC Holdings entered into three extended facilities as of April 13, 2010, as follows:
• an extended revolving loan facility agreement (the "Extended Revolving Loan Facility") that
provided for the extension of the availability period for lenders holding approximately
$820,000 of revolving credit commitments under CSC Holdings' $1,000,000 Revolving Credit
Facility to March 31, 2015. Lenders under the Extended Revolving Loan Facility are entitled
to an extension fee payment of between 2.00% and 2.50% per annum of the outstanding loans
under the Extended Revolving Loan Facility, based upon the cash flow ratio applicable from
time to time. In addition, revolving credit lenders with revolving credit commitments in the
aggregate amount of $412,000 executed joinders to the Credit Agreement agreeing to provide
increased revolving credit commitments with an availability period expiring on March 31,
2015.