FairPoint Communications 2004 Annual Report Download - page 49

We intend to use borrowings under our credit facility's revolving facility to fund the acquisition of Berkshire, which we expect to close in
the second quarter of 2005.
Our old credit facility consisted of an $85.0 million revolving loan facility, of which $45.0 million was available at December 31, 2004,
and two term facilities, a tranche A term loan facility of $40.0 million with $40.0 million outstanding at December 31, 2004 that matured on
March 31, 2007 and a tranche C term loan facility with $102.4 million principal amount outstanding as of December 31, 2004 that matured
on March 31, 2007. We repaid all of the borrowings under our old credit facility with a portion of net proceeds from the offering, together with
borrowings under our credit facility.
Our credit facility consists of a $100.0 million revolving loan facility, of which $99.0 million was available at March 15, 2005 (a
$1.0 million letter of credit was issued as of such date), that matures in February 2011 and a term loan facility of $588.5 million (including a
$22.5 million delayed draw facility) with $566.0 million outstanding at March 15, 2005 that matures in February 2012.
In 1998, the Company issued $125.0 million aggregate principal amount of the 9 1/2% notes and $75.0 million aggregate principal
amount of the floating rate notes. Both series of these notes mature on May 1, 2008. These notes are general unsecured obligations of the
Company, subordinated in right of payment to all of the Company's senior debt. On February 9, 2005, we repurchased $115.0 million
principal amount of the 91/2% notes and $50.8 million principal amount of the floating rate notes tendered pursuant to the tender offers for
such notes. We redeemed the remaining $0.2 million principal amount of the outstanding 9 1/2% notes and $24.2 million principal amount
of the floating rate notes on March 10, 2005.
In 2000, the Company issued $200.0 million aggregate principal amount of the 12 1/2% notes. These notes mature on May 10, 2010.
These notes are general unsecured obligations of the Company, subordinated in right of payment to all of the Company's senior debt. On
February 9, 2005, we repurchased $173.1 million principal amount of the 121/2% notes tendered pursuant to the tender offer for such notes.
We intend to redeem the remaining outstanding 12 1/2% notes on May 1, 2005.
In 2003, the Company issued $225.0 million aggregate principal amount of the 11 7/8% notes. These notes mature on March 1, 2010.
These notes are general unsecured obligations of the Company, ranking  in right of payment with all existing and future senior
debt of the Company, including all obligations under our credit facility, and senior in right of payment to all existing and future subordinated
indebtedness of the Company. On February 9, 2005, we repurchased $223.0 million principal amount of the 117/8% notes tendered
pursuant to the tender offer for such notes.
For a summary description of our debt, see "—Description of Certain Indebtedness."
In May 2002, Carrier Services entered into an amended and restated credit facility with its lenders to restructure its obligations under its
credit facility. In the restructuring, (i) Carrier Services paid certain of its lenders $5.0 million to satisfy $7.0 million of obligations under the
credit facility, (ii) the lenders converted approximately $93.9 million of the loans under the credit facility into shares of our series A preferred
stock and (iii) the remaining loans under the credit facility and certain swap obligations were converted into $27.9 million of new term loans.
In March 2003, we used a portion of the proceeds from the offering of the 11 7/8% notes and borrowings under our old credit facility's tranche A
term loan facility to repay $2.2 million principal amount of loans under Carrier Services' credit facility, at approximately a 30% discount to par.
On January 30, 2004, we used additional borrowings under our old credit facility's tranche A loan facility and a portion of the borrowings
under our old credit facility's revolving loan facility to repay in full all indebtedness under Carrier Services' credit facility.
In December 2004, we wrote off debt issuance and offering costs of $6.0 million associated with our abandoned offering of Income
Deposit Securities. The offering of Income Deposit Securities was abandoned in favor of the offering. Debt issue and offering costs of
$1.4 million that are a direct and incremental benefit to the transactions remain capitalized at December 31, 2004.
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