FairPoint Communications 2004 Annual Report Download - page 105

The indenture governing the 1998 Fixed-Rate Notes and the 1998 Floating-Rate Notes contains certain customary
covenants and events of default.
(c) Senior Subordinated Notes Issued in 2000
FairPoint issued $200.0 million aggregate principal amount of senior subordinated notes (the 2000 Notes) in 2000. The
2000 Notes bear interest at the rate of 12.5% per annum, payable semiannually in arrears.
The 2000 Notes mature on May 1, 2010. FairPoint may redeem the 2000 Notes at any time on or after May 1, 2005 at the
redemption prices stated in the indenture under which the 2000 Notes were issued, together with accrued and unpaid interest,
if any, to the redemption date. In the event of a change of control, FairPoint must offer to repurchase the outstanding 2000
Notes for cash at a purchase price of 101% of the principal amount of such notes, together with all accrued and unpaid interest,
if any, to the date of repurchase.
The 2000 Notes are general unsecured obligations of FairPoint, subordinated in right of payment to all existing and future
senior indebtedness of FairPoint, including all obligations under the Company's amended and restated credit facility.
The indenture governing the 2000 Notes contains certain customary covenants and events of default.
(d) Senior Notes Issued in 2003
FairPoint issued $225.0 million aggregate principal amount of senior notes in 2003 (the 2003 Notes). The 2003 Notes
bear interest at the rate of 117/8% per annum, payable semiannually in arrears.
The 2003 Notes mature on March 1, 2010. FairPoint may redeem the 2003 Notes at any time on or after March 1, 2007 at
the redemption prices stated in the indenture under which the 2003 Notes were issued, together with accrued and unpaid
interest, if any, to the redemption date. In the event of a change of control, FairPoint must offer to repurchase the outstanding
2003 Notes for cash at a purchase price of 101% of the principal amount of such notes, together with all accrued and unpaid
interest, if any, to the date of repurchase.
The 2003 Notes are general unsecured obligations of FairPoint, ranking  in right of payment with all existing
and future senior debt of FairPoint, including all obligations under the Company's amended and restated credit facility, and
senior in right of payment to all existing and future subordinated indebtedness of FairPoint.
The indenture governing the 2003 Notes contains certain customary covenants and events of default.
The proceeds from the offering of the 2003 Notes and borrowings under the Company's amended and restated credit
facility's tranche A term loan facility were used to: (i) repay the entire amount of all loans outstanding under FairPoint's then-
outstanding credit facility's revolving facility, acquisition facility, and tranche B term loan facility; (ii) repurchase $13.3 million
aggregate liquidation preference of the Company's series A preferred stock (together with accrued and unpaid dividends
thereon) at 65% of its liquidation preference; (iii) repurchase $9.8 million aggregate principal amount of the 1998 Fixed Rate
Notes (together with accrued and unpaid interest thereon) for approximately $7.9 million;
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