FairPoint Communications 2004 Annual Report Download - page 103

revolving credit facility debt with a term of 6.5 years. On March 14, 2000, an additional $165 million reducing revolving credit
facility with a term of 4.5 years was committed and made available to the Company under the credit facility. The credit facility
requires that the Company maintain certain financial covenants.
The credit facility was amended and restated as part of a refinancing completed on March 6, 2003. The amended and
restated credit facility provides for, among other things, rescheduled amortization and an excess cash flow sweep with respect
to the tranche C term facility. The amended and restated credit facility consists of term loan facilities (consisting of tranche A
loans and tranche C loans) in an aggregate principal amount of $156.4 million and a revolving credit facility in an aggregate
principal amount of $70.0 million. All of the Company's obligations under the amended and restated credit facility are
unconditionally and irrevocably guaranteed jointly and severally by four of its mid-tier subsidiaries. Outstanding debt under the
amended and restated credit facility is secured by a first priority perfected security interest in all of the capital stock of certain of
the Company's subsidiaries.
The amended and restated credit facility is comprised of the following facilities:
A revolving loan facility of $85 million. As of December 31, 2004, $40 million was
outstanding under the revolving loan facility. These loans mature on March 31, 2007 and bear interest per
annum at either a base rate plus 3.00% or LIBOR plus 4.00%.
A tranche A term loan facility of $40 million. As of December 31, 2004,
$40 million of tranche A term loans were outstanding. These loans mature on March 31, 2007 and bear interest
per annum at either a base rate plus 3.00% or LIBOR plus 4.00%.
As of December 31, 2004, approximately $102.4 million of tranche C term
loans remained outstanding. These loans mature on March 31, 2007. Mandatory repayments under the tranche
C term loan facility are scheduled to be $18.2 million, $28.2 million and $56.0 million in years 2005, 2006, and
on March 31, 2007, respectively. Tranche C term loans bear interest per annum at either a base rate plus 3.50%
or LIBOR plus 4.50%.
The amended and restated credit facility contains certain customary covenants and other credit requirements of the
Company and its subsidiaries and certain customary events of default. The amended and restated credit facility limits the
Company's ability to make investments in Carrier Services and its subsidiaries.
Net cash proceeds from asset sales are required to be applied as mandatory prepayments of principal on outstanding loans
unless such proceeds are used by us to finance acquisitions permitted under our amended and restated credit facility within
180 days (270 days with respect to a special asset sale, as defined in the credit facility) of our receipt of such proceeds. Change
of control transactions trigger a mandatory prepayment obligation. Voluntary prepayments of loans, including interim
prepayments of revolving loans with proceeds of asset sales that are not used to prepay term loans in anticipation of being
subsequently applied to fund a permitted acquisition or acquisitions within 180 days (270 days in the event described above) of
the asset sale, may be made at any time without premium or penalty, provided that voluntary prepayments of Eurodollar loans
made on a date other than the last day of an interest period applicable thereto shall be subject to customary breakage costs.
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