Cablevision 2014 Annual Report Download - page 67

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LIQUIDITY AND CAPITAL RESOURCES
Cablevision
Cablevision has no operations independent of its subsidiaries. Cablevision's outstanding securities consist of Cablevision NY
Group ("CNYG") Class A common stock, CNYG Class B common stock and approximately $3,410,000 of debt securities, including
approximately $2,799,000 face value of debt securities held by third party investors and approximately $611,000 held by Newsday
Holdings. The $611,000 of notes are eliminated in Cablevision's consolidated financial statements and are shown as senior notes
due from Cablevision in the consolidated equity of CSC Holdings.
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
$92,033 under our credit facilities, capital leases and notes payable as of December 31, 2014. However, competition and market
disruptions or a deterioration in economic conditions could lead to lower demand for our products, such as video 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
In January 2014, Cablevision repurchased with cash on hand $27,831 aggregate principal amount of its outstanding 5.875% Senior
Notes due 2022 (the "2022 Notes"). In October 2014, Cablevision repurchased with cash on hand an additional $9,200 aggregate
principal amount of the 2022 Notes. In connection with these repurchases, Cablevision recorded a gain from the extinguishment
of this debt of $934, net of fees and a write-off approximately $1,436 of unamortized deferred financing costs associated with
these notes.