Cablevision 2012 Annual Report Download - page 171

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-43
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 to 1 3.0 to 1 2.0 to 1 1.5 to 1
Extended revolving loan facility ...
.
4.5 to 1 3.0 to 1 2.0 to 1 1.5 to 1
Term A-3 extended loan facility ...
.
4.5 to 1 3.0 to 1 2.0 to 1 1.5 to 1
Term A-4 extended loan facility ...
.
4.5 to 1 3.0 to 1 2.0 to 1 1.5 to 1
Term B-2 extended loan
facility(b) ...................................
.
5.0 to 1 4.5 to 1 n/a n/a
Term B-3 extended loan
facility(b) ...................................
.
5.0 to 1 4.5 to 1 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 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. CSC Holdings' ability to make restricted payments is also limited by
provisions in the 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, 2012.
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 (of which $749,700 was outstanding at December 31, 2012) 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.