FairPoint Communications 2007 Annual Report Download - page 95

Table of Contents
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The approximate aggregate maturities of long-term debt for each of the five years subsequent to December 31, 2007 are as follows (in
thousands):
Fiscal year:
2008 $ 753
2009 161
2010 2,210
2011 32,871
2012 588,682
Thereafter 295
$ 624,972
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On February 8, 2005, the Company entered into a credit facility consisting of a revolving facility in an aggregate principal amount
of up to $100.0 million and a term facility in an aggregate principal amount of $588.5 million, which credit facility was subsequently
amended, including in 2008 pursuant to the fifth amendment previously discussed in note 1. Pursuant to EITF 96-19, 
, the Company has determined that the Fifth Amendment to its existing
credit facility represents a substantial modification, therefore the original debt is considered to be extinguished. As a result, the Company
expects to record a loss to interest expense during the quarter ended March 31, 2008. On the closing date of the Company’s initial public
offering, the Company drew $566.0 million against the term facility. In addition, on May 2, 2005, the Company drew $22.5 million of
borrowings under the delayed draw term facility of the existing credit facility. The Company incurred approximately $10.4 million of debt
issuance costs associated with entering into the existing credit facility and subsequent amendments thereto.
The term facility matures in February 2012 and the revolving facility matures in February 2011. Borrowings bear interest, at the
Company’s option, for the revolving facility and for the term facility at either (a) the Eurodollar rate (as defined in the existing credit
facility) plus an applicable margin or (b) the Base rate (as defined in the existing credit facility) plus an applicable margin. The
Eurodollar rate applicable margin and the Base rate applicable margin for loans under the existing credit facility are 2.0% and 1.0%,
respectively. Effective on September 30, 2005, the Company amended its credit facility to reduce the effective interest rate margins on the
$588.5 million term facility by 0.25% to 1.75% on Eurodollar loans and to 0.75% for Base rate loans. Interest with respect to Base rate
loans is payable quarterly in arrears and interest with respect to Eurodollar loans is payable at the end of the applicable interest period and
every three months in the case of interest periods in excess of three months.
The existing credit facility provides for payment to the lenders of a commitment fee on any unused commitments equal to 0.5% per
annum, payable quarterly in arrears, as well as other fees.
On January 25, 2007, the Company entered into an amendment to its credit facility which is intended to facilitate certain
transactions related to the Merger. Among other things, such amendment: (i) permits the Company to consummate the O-P Disposition
and retain the proceeds thereof up to an amount equal to $55.0 million; (ii) excludes the gain on the O-P Disposition from the calculation
of “Available Cash” under the existing credit facility, (iii) amends the definition of “Adjusted Consolidated EBITDA” to allow for certain
one-time add-backs to the calculation thereof for cash operating expenses incurred in connection with the Merger (subject to an overall cap
on the amount of such add-backs); (iv) amends the definition of “Consolidated Capital Expenditures” to exclude certain expenditures
incurred by the Company in connection with transition and integration costs prior to consummation of the Merger (subject to an overall
cap on the amount of such exclusions); and (v) increases the leverage covenant and dividend suspension test to 5.50 to 1.00 and 5.25 to
1.00, respectively.
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