Cablevision 2014 Annual Report Download - page 70

64
the date specified in the respective supplements or agreements establishing such facilities. The Credit Agreement provides for
issuance of letters of credit in an aggregate amount of up to $150,000.
Loans under the Credit Agreement are direct obligations of CSC Holdings, guaranteed by most of the Restricted Subsidiaries (as
defined in the Credit Agreement) and secured by the pledge of the stock and other security interests of most of the Restricted
Subsidiaries.
Loans under the Credit Agreement bear interest as follows:
• Revolving credit loans and Term A loans, either (i) the Eurodollar rate (as defined) plus a spread ranging from 1.50% to
2.25% based on the cash flow ratio (as defined) or (ii) the base rate (as defined) plus a spread ranging from 0.50% to
1.25% based on the cash flow ratio;
• Term B loans, either (i) the Eurodollar rate plus a spread of 2.50% or (ii) the base rate plus a spread of 1.50%.
The Restricted Group credit facility has two financial maintenance covenants applicable to the revolving credit facility and the
Term A loans: (1) a maximum ratio of total net indebtedness to cash flow of 5.0 to 1 and (2) a maximum ratio of senior secured
net indebtedness to cash flow of 4.0 to 1. The financial maintenance covenants do not apply to the Term B loans.
These covenants and restrictions on the permitted use of borrowed funds in the revolving loan facility may limit the Restricted
Group's 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, the Restricted Group must also remain in compliance with the maximum ratio of total net
indebtedness to cash flow and the maximum ratio of senior secured net indebtedness to cash flow.
There is a commitment fee of 0.30% on undrawn amounts under the revolving credit facility.
The Restricted Group was in compliance with all of its financial covenants under the Credit Agreement as of December 31,
2014.
Repayment of Credit Facility Debt - CSC Holdings
In May 2014, CSC Holdings used the net proceeds from the issuance of the 2024 Notes (discussed below), as well as cash on hand,
to make a $750,000 repayment on its outstanding Term B loan facility. In September 2014, CSC Holdings made a repayment of
$200,000 on its outstanding Term B loan facility with cash on hand. In connection with these repayments, the Company recognized
a loss on extinguishment of debt of approximately $4,054 and wrote-off unamortized deferred financing costs related to this loan
facility of approximately $5,564 for the year ended December 31, 2014.
Issuance of Debt Securities - CSC Holdings
In May 2014, CSC Holdings issued $750,000 aggregate principal amount of 5.25% senior notes due June 1, 2024 (the "2024
Notes"). The 2024 Notes are senior unsecured obligations and rank equally in right of payment with all of CSC Holdings' other
existing and future unsecured and unsubordinated indebtedness. CSC Holdings may redeem all or a portion of the 2024 Notes at
any time at a price equal to 100% of the principal amount of the 2024 Notes redeemed plus accrued and unpaid interest to the
redemption date plus a "make whole" premium. CSC Holdings used the net proceeds from the issuance of the 2024 Notes, as well
as cash on hand, to make a $750,000 repayment on its outstanding Term B loan facility. In connection with the issuance of the
2024 Notes, the Company incurred deferred financing costs of approximately $14,273, which are being amortized to interest
expense over the term of the 2024 Notes.
Newsday LLC
We currently expect that net funding and investment requirements for Newsday for the next 12 months will be met with one or
more of the following: cash on hand, cash generated by operating activities, interest income from the Cablevision senior notes
held by Newsday Holdings, capital contributions and intercompany advances.
Newsday has a credit agreement (the "Newsday Credit Agreement") which consists of a $480,000 floating rate term loan which
matures on October 12, 2016. Interest under the Newsday Credit Agreement is calculated, at the election of Newsday, at either
the eurodollar rate or the base rate, plus 3.50% or 2.50%, respectively, as specified in the Newsday Credit Agreement. Borrowings
by Newsday under the Newsday Credit Agreement are guaranteed by CSC Holdings on a senior unsecured basis and certain of its