Cablevision 2011 Annual Report Download - page 90

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The principal financial covenant for the senior secured loan facility is a minimum liquidity test of
$25,000, which is tested bi-annually on June 30 and December 31. The senior secured loan facility also
contains other affirmative and negative covenants, subject to certain exceptions, including limitations on
indebtedness (other than permitted senior indebtedness (as defined) not exceeding $50,000 and permitted
subordinated indebtedness (as defined) to be used for investments not to exceed $100,000), investments
(other than investments out of excess cash flow and out of the proceeds of the Cablevision senior notes in
excess of the outstanding borrowings and out of a $40,000 basket), and dividends and other restricted
payments (other than in respect of management and guarantee fees and restricted payments out of excess
cash flow and out of the proceeds of the Cablevision senior notes in excess of the outstanding
borrowings). Certain of the covenants applicable to CSC Holdings under the Newsday LLC senior
secured loan facility are similar to the covenants applicable to CSC Holdings under its outstanding senior
notes.
Borrowings by Newsday LLC under its senior secured loan facility are guaranteed by Newsday Holdings
LLC, NMG Holdings, Inc. and CSC Holdings on a senior unsecured basis and secured by a lien on the
assets of Newsday LLC, and the Cablevision senior notes receivable held by Newsday Holdings LLC.
Newsday LLC will generally be prohibited from using the proceeds received from any repayment of the
Cablevision senior notes contributed to Newsday Holdings LLC by CSC Holdings to acquire non-
publicly traded notes or debt instruments of Cablevision or CSC Holdings, and Newsday LLC will be
required under its senior secured loan facility to maintain cash or cash equivalents or publicly traded notes
or debt instruments of Cablevision or CSC Holdings with an aggregate principal amount that exceeds the
then-outstanding borrowings by Newsday LLC under its senior secured loan facility.
Newsday LLC was in compliance with all of its financial covenants under its credit agreement as of
December 31, 2011.
Capital Expenditures
The following table provides details of the Company's capital expenditures for the years ended
December 31, 2011 and 2010:
Years Ended
December 31,
2011 2010
Capital Expenditures
Customer premise equipment .................................................................................
.
$203,107 $300,221
Scalable infrastructure ............................................................................................
.
217,066 180,562
Line extensions .......................................................................................................
.
40,240 36,137
Upgrade/rebuild ......................................................................................................
.
37,013 19,701
Support ...................................................................................................................
.
156,698 145,153
Total Cable Television ........................................................................................
.
654,124 681,774
Optimum Lightpath ................................................................................................
.
106,163 98,154
Total Telecommunications ..................................................................................
.
760,287 779,928
Other .......................................................................................................................
.
54,520 43,317
Total Cablevision ................................................................................................
.
$814,807 $823,245
Capital expenditures for 2011 decreased $8,438 (1%) as compared to 2010. The decrease is primarily due
to a decrease in customer premise equipment of $129,594 due to lower expenditures for set top boxes,
partially offset by an increase in scalable infrastructure of $22,589 primarily due to enhancements to our
network and data transmitting facilities for our high-speed data and voice services in the New York
metropolitan service area. The remaining increase relates to capital expenditures from the newly acquired