Cincinnati Bell 2009 Annual Report Download - page 140

7. Debt
Debt is comprised of the following:
December 31,
(dollars in millions) 2009 2008
Current portion of long-term debt:
Credit facility, Tranche B Term Loan ......................................... $ 2.1 $ 2.1
Capital lease obligations and other debt ....................................... 13.7 8.1
Current portion of long-term debt .......................................... 15.8 10.2
Long-term debt, less current portion:
Credit facility, revolver .................................................... — 73.0
Credit facility, Tranche B Term Loan ......................................... 202.8 204.9
7
1
⁄ 4 % Senior Notes due 2013 ............................................... — 439.9
83/8% Senior Subordinated Notes due 2014* ................................... 569.8 572.7
7% Senior Notes due 2015* ................................................ 252.3 257.2
8
1
⁄ 4 % Senior Notes due 2017 ............................................... 500.0 —
7
1
⁄ 4 % Senior Notes due 2023 ............................................... 40.0 50.0
Receivables Facility ...................................................... 85.9 75.0
Various Cincinnati Bell Telephone notes ...................................... 207.5 230.0
Capital lease obligations and other debt ....................................... 111.8 47.5
1,970.1 1,950.2
Net unamortized (discount) premium ........................................... (6.8) 0.3
Long-term debt, less current portion ........................................ 1,963.3 1,950.5
Total debt ................................................................. $1,979.1 $1,960.7
* The face amount of these notes has been adjusted for the fair value of interest rate swaps classified as fair
value derivatives at December 31, 2008 and the unamortized called amounts received on terminated interest
rate swaps at December 31, 2009.
Corporate Credit Facilities
In February 2005, Cincinnati Bell Inc. (“CBI”), the parent company, entered into a corporate credit facility
(“Corporate credit facility”) which had a $250.0 million revolving line of credit and would have expired February
2010. In June 2009, the Company amended the Corporate credit facility, reducing the revolving line of credit to
$210 million with an expiration date in August 2012. The amended revolving credit facility is funded by 11
different financial institutions, with no financial institution having more than 12% of the total facility.
Borrowings under the amended revolving credit facility bear interest, at the Company’s election, at a rate per
annum equal to (i) LIBOR plus the applicable margin or (ii) the base rate plus the applicable margin. The
applicable margin is based on certain Company financial ratios and ranges between 3.00% and 3.50% for LIBOR
rate advances, and 2.00% and 2.50% for base rate advances. Base rate is the greater of the bank prime rate, the
LIBOR rate plus one percent or the federal funds rate plus one-half percent. As of December 31, 2009, the
Company did not have any outstanding borrowings under its revolving credit facility, and had outstanding letters
of credit totaling $24.5 million, leaving $185.5 million in additional borrowing availability under its Corporate
credit facility.
In August 2005, the Company amended the Corporate credit facility to include a $400 million term loan
(“Tranche B Term Loan”). The proceeds from the Tranche B Term Loan and additional borrowings under the
Corporate credit facility were used to retire corporate bonds totaling $447.8 million. The Tranche B Term Loan
bears interest at a per annum rate equal to, at the Company’s option, LIBOR plus 1.50% or the base rate plus
0.50%. In 2007, the Company repaid $184.0 million of the Tranche B Term Loan, using proceeds of $75.0
million from borrowings under the Receivables Facility described below and the remainder from available cash.
The Company recorded a loss on extinguishment of debt of $0.4 million in 2007 for the repayment of the
70