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Table of Contents
EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
7. Long-Term Debt and Capital Lease Obligations
The Company’s long-term debt and capital lease obligations consisted of the following as of December 31, 2014 and 2015 :
December 31, 2014
December 31, 2015
(in thousands)
Senior secured notes due June 2020 $ 300,000
$ 300,000
Unamortized debt issue costs on senior secured notes due June 2020 (5,792)
(4,723)
Senior notes due May 2019 300,000
173,925
Unamortized discount and debt issue costs on senior notes due May 2019 (11,774)
(5,393)
Senior secured revolving credit facility —
35,000
Capital lease obligations 14,422
13,591
Carrying value of debt and capital lease obligations 596,856
512,400
Less current portion of debt and capital lease obligations (1,537)
(6,787)
Long-term debt and capital lease obligations $ 595,319
$ 505,613
2015 Transactions
In March 2015, the Company repurchased $21.1 million outstanding principal of its 8.875% Senior Notes due 2019 (the “Senior Notes”) in the open market for
$21.6 million , plus accrued and unpaid interest. In April 2015, the Company repurchased an additional $5.0 million outstanding principal of its Senior Notes in the
open market for $5.2 million , plus accrued and unpaid interest. In June 2015, pursuant to terms under the indenture and authorization by the Board of Directors,
the Company redeemed $70.0 million aggregate principal amount of its Senior Notes at a redemption price of 104.438% of the principal amount thereof, or $73.1
million , plus accrued and unpaid interest. In August 2015, the Company repurchased $30.0 million outstanding principal of its Senior Notes in the open market for
$31.5 million , plus accrued and unpaid interest.
The Company recognized a $9.7 million loss on extinguishment of debt on the above transactions during the year ended December 31, 2015, consisting of $5.2
million for premiums paid on the repurchase, $2.5 million for the write-off of unamortized discount on debt and $2.0 million for the write-off of unamortized debt
issuance costs. The losses are included in loss on extinguishment of debt in the Consolidated Statement of Comprehensive Loss. The payment of premiums is
included in repayment of debt and capital lease obligations in the Consolidated Statement of Cash Flows.
During the year ended December 31, 2015, the Company drew a total of $90.0 million under its senior secured revolving credit facility, net of issuance costs, and
repaid a total of $55.0 million of its senior secured revolving credit facility, for a net increase of $35.0 million during the the year. In January 2016, the Company
repaid an additional $5.0 million of its senior secured revolving credit facility. As of December 31, 2015, the Company had $35.0 million outstanding under its
senior secured revolving credit facility, of which $5.0 million was classified within current portion of long-term debt and capital lease obligations and $30.0 million
was classified within long-term debt and capital lease obligations.
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