Lifetime Fitness 2009 Annual Report Download - page 47

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42
Mortgage Notes Financing
In March 2009, we financed one Minnesota center using an obligation bearing interest at a fixed rate of 6.25%
amortized over a 15-year period. This obligation is due in full in March 2014. As security for the obligation, we
have granted a mortgage on this center. At December 31, 2009, $4.7 million was outstanding with respect to this
obligation.
In May 2009, we financed one Minnesota center using an obligation bearing interest at a rate of 7.10%, to be reset in
May 2014 and May 2019 using the five-year LIBOR swap rate plus 4.50%, with a 6.00% floor, and amortized over
a 20-year period. This obligation is due in full in May 2024. As security for the obligation, we have granted a
mortgage on this center. At December 31, 2009, $2.9 million was outstanding with respect to this obligation.
In November 2009, we financed one Minnesota center using an obligation bearing interest at a fixed rate of 6.95%
amortized over a 15-year period. This obligation is due in full in November 2014. As security for the obligation, we
have granted a mortgage on this center. At December 31, 2009, $10.3 million was outstanding with respect to this
obligation.
See footnote 4, “Long-Term Debt” to our consolidated financial statements for a description of all of our
outstanding financing arrangements.
Debt Covenants
We are in compliance in all material respects with all restrictive and financial covenants under our various credit
facilities as of December 31, 2009.
Our primary financial covenants are:
Actual as of December 31,
Covenant Requirement 2009 2008
Revolving credit facility:
Total Consolidated Debt to EBITDAR (1) .. Not more than 4.00 to 1.0 3.29 to 1.0 3.51 to 1.0
Senior Debt to EBITDA (1) ......................... Not more than 3.25 to 1.0 1.82 to 1.0 2.22 to 1.0
Fixed Charge Coverage Ratio (1) (2) ........... Not less than 1.60 2.65 to 1.0 3.16 to 1.0
Sale-leaseback:
Tangible Net Worth (3) ................................ Not less than $200.0 million $688.4 million $598.1 million
(1) The formulas for these covenants are specifically defined in the revolving credit facility and include,
amount other things, an add back of share-based compensation expense to EBITDAR and EBITDA. See
footnote 4, “Long-Term Debt” for more information on our revolving credit facility.
(2) The Fixed Charge Coverage Ratio decrease of 0.51 from December 31, 2008 to December 31, 2009 was
primarily due to additional rent expense from the six sale-leaseback transactions that we entered into during
the second half of 2008. See footnote 10, “Commitments and Contingencies” to our consolidated financial
statements for more information on our sale-leaseback transactions.
(3) The formula for this covenant is specifically defined in our Senior Housing Properties Trust agreement. See
footnote 10, “Commitments and Contingencies” to our consolidated financial statements for more
information on this sale-leaseback transaction.