Express Scripts 2011 Annual Report Download - page 76

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Express Scripts 2011 Annual Report
74
We incurred financing costs of $91.0 million related to the bridge facility. Financing costs of $26.0 million
were immediately expensed upon entering into the new credit agreement, which reduced the commitments under the
bridge facility by $4.0 billion. The remaining financing costs of $65.0 million related to the bridge facility were
capitalized and are being amortized over nine months. Amortization of the deferred financing costs is accelerated in
proportion to the amount by which alternative financing replaces the commitments under the bridge facility. As
such, we accelerated amortization of a portion of the financing costs upon issuance of the November 2011 Senior
Notes, which reduced the commitments under the bridge facility by $4.1 billion. The remaining financing costs of
$16.2 million as of December 31, 2011, are being amortized over the remaining commitment period of the bridge
facility.
Deferred financing costs are reflected in other intangible assets, net in the accompanying consolidated
balance sheet.
COVENANTS
Our bank financing arrangements contain covenants that restrict our ability to incur additional
indebtedness, create or permit liens on assets and engage in mergers or consolidations. The covenants also include
minimum interest coverage ratios and maximum leverage ratios. At December 31, 2011, we believe we were in
compliance in all material respects with all covenants associated with our credit agreements.
The following represents the schedule of current maturities for our long-term debt as of December 31, 2011
(amounts in millions):
Year Ended December 31,
2012
$ 1,000.1
2013
0.1
2014(1)
1,900.0
2015
-
2016(1)
2,750.0
Thereafter(1)
2,450.0
$ 8,100.2
(1) In the event the merger with Medco is not consummated, we would be required to redeem the $4.1 billion
of senior notes issued in November 2011 at a redemption price equal to 101% of the aggregate principal
amount of such notes, plus accrued and unpaid interest prior to their original maturities shown in the table
above.