Cablevision 2013 Annual Report Download - page 83

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Funding for Our Debt Service Requirements
Funding for the debt service requirements of our debt securities is provided by our subsidiaries'
operations, principally CSC Holdings, as permitted by the covenants governing CSC Holdings' credit
agreements and indentures. Funding for our subsidiaries is generally provided by cash flow from
operations, cash on hand, and borrowings under the Restricted Group (as later defined) revolving credit
facility, and the proceeds from the issuance of securities in the capital markets. Our decision as to the use
of cash generated from operating activities, cash on hand and borrowings under the Restricted Group
revolving credit facility will be based upon an ongoing review of the funding needs of the business, the
optimal allocation of cash resources, the timing of cash flow generation and the cost of borrowing under
the revolving credit facility. Moreover, we will monitor the credit markets and may seek opportunities to
issue debt, the proceeds of which could be used to meet our future cash funding requirements. We have
accessed the debt markets for significant amounts of capital in the past and expect to do so in the future.
We have assessed our ability to repay our scheduled debt maturities over the next 12 months and we
currently believe that a combination of cash on hand, cash generated from operating activities and
availability under the Restricted Group revolving credit facility, should provide us with sufficient
liquidity to repay such scheduled current debt maturities in the next 12 months totaling $79,038
(including $27,831 aggregate principal amount of senior notes due 2022 repurchased in January 2014)
under our credit facilities, senior notes and notes payable as of December 31, 2013. However, market
disruptions or a deterioration in economic conditions could lead to lower demand for our products, such
as cable television services, as well as lower levels of television and newspaper advertising, and increased
incidence of customers' inability to pay for the services we provide. These events would adversely impact
our results of operations, cash flows and financial position. Although we currently believe that amounts
available under the Restricted Group revolving credit facility will be available when, and if needed, we
can provide no assurance that access to such funds will not be impacted by adverse conditions in the
financial markets or other conditions. The obligations of the financial institutions under the Restricted
Group revolving credit facility are several and not joint and, as a result, a funding default by one or more
institutions does not need to be made up by the others.
In the longer term, we do not expect to be able to generate sufficient cash from operations to fund
anticipated capital expenditures, meet all existing future contractual payment obligations and repay our
debt at maturity. As a result, we will be dependent upon our ability to access the capital and credit
markets. We will need to raise significant amounts of funding over the next several years to fund capital
expenditures, repay existing obligations and meet other obligations, and the failure to do so successfully
could adversely affect our business. If we are unable to do so, we will need to take other actions
including deferring capital expenditures, selling assets, seeking strategic investments from third parties or
reducing or eliminating dividend payments and stock repurchases or other discretionary uses of cash.
Repurchases of Cablevision Senior Notes
During September, October and December 2013, Cablevision repurchased with cash on hand,
approximately $63,945 aggregate principal amount of its outstanding 2022 Notes. In connection with
these repurchases, Cablevision recorded a gain from the extinguishment of debt of $1,119 and a write-off
of approximately $517 of unamortized deferred financing costs associated with these notes.
In January 2014, Cablevision repurchased with cash on hand an additional $27,831 aggregate principal
amount of the outstanding 2022 Notes. These notes repurchased in January 2014 have been reclassified
from long-term to current on Cablevision's balance sheet at December 31, 2013.