Cincinnati Bell 2013 Annual Report Download - page 169

Form 10-K Part II Cincinnati Bell Inc.
7. Debt and Other Financing Arrangements
The Company’s debt consists of the following:
December 31,
(dollars in millions) 2013 2012
Current portion of long-term debt:
Corporate Credit Agreement—Tranche B Term Loan ............................ $ 5.4 $ —
Capital lease obligations and other debt ..................................... 7.2 13.4
Current portion of long-term debt .......................................... 12.6 13.4
Long-term debt, less current portion:
Corporate Credit Agreement ................................................ 40.0 —
Receivables facility ....................................................... 106.2 52.0
8 1/4% Senior Notes due 2017 .............................................. — 500.0
8 3/4% Senior Subordinated Notes due 2018 ................................... 625.0 625.0
Corporate Credit Agreement — Tranche B Term Loan ........................... 533.2 —
8 3/8% Senior Notes due 2020 .............................................. 683.9 683.9
CyrusOne 6 3/8% Senior Notes due 2022 ...................................... — 525.0
7 1/4% Senior Notes due 2023 .............................................. 40.0 40.0
Various Cincinnati Bell Telephone notes ...................................... 134.5 134.5
Capital lease obligations and other debt ....................................... 96.1 123.1
2,258.9 2,683.5
Net unamortized discount .................................................... (6.3) (7.5)
Long-term debt, less current portion .......................................... 2,252.6 2,676.0
Total debt ................................................................. $2,265.2 $2,689.4
Corporate Credit Agreement
Revolving Credit Facility
On November 20, 2012, the Company entered into a new corporate credit agreement (“Corporate Credit
Agreement”) which provides for a $200 million revolving credit facility, with a sublimit of $30 million for letters
of credit and a $25 million sublimit for swingline loans. The Corporate Credit Agreement has a maturity date of
July 15, 2017. Borrowings under the Corporate Credit Agreement will be used to provide ongoing working
capital and for other general corporate purposes of the Company. Upon issuance of the Corporate Credit
Agreement, the Company’s former revolving credit facility was terminated. Availability under the new revolving
credit facility is subject to customary borrowing conditions.
Borrowings under the Corporate Credit Agreement 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 for advances under the revolving facility is based on certain financial ratios and ranges
between 3.50% and 4.25% for LIBOR rate advances and 2.50% and 3.25% for base rate advances. As of
December 31, 2013, the applicable margin was 4.00% for LIBOR rate advances and 3.00% for base rate
advances. Base rate is the higher of (i) the bank prime rate, (ii) the one-month LIBOR rate plus 1.00% and
(iii) the federal funds rate plus 0.5%. At December 31, 2013, the interest rate on the outstanding borrowings
under the Corporate Credit Agreement was 4.15%.
The revolving commitments under the Corporate Credit Agreement will be permanently reduced by the
lesser of (i) the amount of net cash proceeds from the first sale by the Company of its equity interests in
CyrusOne or CyrusOne LP and (ii) $50 million, provided that such sale occurs by December 31, 2014. If such
sale has not occurred by that date, the original revolving commitments will be permanently reduced to $150
million. In addition, the original revolving commitments will be further reduced to $125 million on
December 31, 2015.
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Form 10-K