Cincinnati Bell 2005 Annual Report Download - page 121

6. Debt
Debt is comprised of the following:
December 31,
(dollars in millions) 2005 2004
Current portion of long-term debt:
Credit facility, repaid in February 2005 ....................................... $ — $ 4.3
Credit facility, tranche B term loan ........................................... 4.0 —
Various Cincinnati Bell Telephone notes ...................................... — 20.0
Capital lease obligations ................................................... 4.9 4.2
Other short-term debt ..................................................... 2.4 1.6
Current portion of long-term debt .......................................... 11.3 30.1
Long-term debt, less current portion:
Credit facility, repaid in February 2005 ....................................... — 434.5
Credit facility, tranche B term loan ........................................... 395.0 —
16% Senior Subordinated Discount Notes due 2009 ............................. — 375.2
7
1
⁄ 4 % Senior Notes due 2013 ............................................... 500.0 500.0
83/8% Senior Subordinated Notes due 2014* ................................... 633.4 543.9
7% Senior Notes due 2015* ................................................ 246.4 —
7
1
⁄ 4 % Senior Notes due 2023 ............................................... 50.0 50.0
Various Cincinnati Bell Telephone notes ...................................... 230.0 230.0
Capital lease obligations ................................................... 17.3 11.4
Other long-term debt ...................................................... 0.3 —
2,072.4 2,145.0
Net unamortized (discounts) premiums ......................................... 1.0 (33.9)
Long-term debt, less current portion ........................................ 2,073.4 2,111.1
Total debt ................................................................. $2,084.7 $2,141.2
* The face amount of these notes has been adjusted to mark hedged debt to fair value at December 31, 2005 and 2004.
In the first quarter of 2005, the Company completed the first of a two stage refinancing plan of its 16%
Senior Subordinated Discount Notes due 2009 (“16% Notes”). In the third quarter of 2005, the Company
completed the second stage of its plan with the refinancing of the 16% Notes. In stage one, the Company:
•paid $9.7 million in fees to the holders of the Company’s 7
1
⁄ 4 % Senior Notes due 2013 (“7
1
⁄ 4 % Notes due
2013”) for their consent to permit the Company to refinance its 16% Notes with new debt that would be
pari passu to the 7
1
⁄ 4 % Notes;
•issued, on February 16, 2005, $250 million new 7% Senior Notes due 2015 (“7% Senior Notes”) and
$100 million in additional 8
3
⁄ 8 % Senior Subordinated Notes due 2014 (“8
3
⁄ 8 % Notes”) (collectively, the
“New Bonds”);
•established, on February 16, 2005, a new credit facility (“Corporate credit facility”) for a $250 million
revolving line of credit that matures in February 2010 and also includes the right to request, but no lender
is committed to provide, an increase in the aggregate amount of the new credit facility of up to $500
million in future incremental borrowing capacity;
•used the proceeds from the New Bonds and borrowings from the new Corporate credit facility revolver to
repay $438.8 million outstanding at December 31, 2004 on its previous credit facility; and
•executed $350 million notional interest rate swaps to change the fixed rate nature of a part of the New
Bonds and the previously outstanding 8
3
⁄ 8 % Notes to approximate the floating rate characteristics of the
terminated credit facility.
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