MoneyGram 2013 Annual Report Download - page 96

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Table of Contents
The 2013 Credit Agreement also has quarterly financial covenants to maintain the following interest coverage and total secured leverage ratios:
We continuously monitor our compliance with our debt covenants. At December 31, 2013
, the Company was in compliance with its financial
covenants: our Interest Coverage ratio was 6.90 and our Total Secured Leverage ratio was 2.781 .
Debt Discount
— The amortization of the debt discount for 2011 includes a pro-rata write-off of the term debt. For the year ended
December 31,
2011 , the Company recorded a $1.1 million write off of debt discount related to debt extinguishment, which is recorded in “Other costs”
in the
Consolidated Statements of Operations. The following is the debt discount amortization, recorded in “Interest expense,” and the write-
off of the
debt discount, recorded in "Debt extinguishment costs," in the Consolidated Statements of Operations for the years ended December 31 :
F-27
Interest Coverage
Minimum Ratio
Total Secured
Leverage Not to
Exceed
December 31, 2013 through September 30, 2014
2.15:1
4.375:1
December 31, 2014 through September 30, 2015
2.25:1
4.000:1
December 31, 2015 through September 30, 2016
2.25:1
3.750:1
December 31, 2016 through maturity
2.25:1
3.500:1
(Amounts in millions) 2013
2012
2011
Amortization of debt discount
$
0.2
$
0.5
$
0.4
Write-off of debt discount upon prepayments
2.3
—
0.1
Total amortization of discount
$
2.5
$
0.5
$
0.5