MoneyGram 2013 Annual Report Download - page 97

Table of Contents
Deferred Financing Costs
—The Company capitalized financing costs in “Other assets”
in the Consolidated Balance Sheets and amortizes them
over the term of the related debt using the effective interest method. Expense of the deferred financing costs during 2013 , 2012 and
2011
include the write-off of a pro-
rata portion of deferred financing costs in connection with the extinguishment of the 2011 Credit Agreement, as
well as payments on the second lien notes, the incremental term loan and the term debt. Amortization is recorded in “Interest expense”
in the
Consolidated Statements of Operations. The following table is a summary of the deferred financing costs at December 31 :
(1)
As a result of the 2011 Recapitalization, a portion of the deferred financing costs were transferred from the 2008 Senior Facility to the 2011 Credit Agreement.
(2)
As a result of the 2013 Credit Agreement, a portion of the deferred financing costs were transferred from the 2011 Credit Agreement to the 2013 Credit Agreement.
Debt Extinguishment Costs
— In 2013 , the Company recognized debt extinguishment costs of $45.3 million
in connection with the 2013 Credit
Agreement, which included a prepayment penalty for the Company's purchase of the second lien notes and debt modification costs for the 2013
Credit Agreement. The Company recognized debt extinguishment costs of $37.5 million
in connection with the 2011 Recapitalization and partial
redemption of the second lien notes in November 2011. The following is a summary of the debt extinguishment costs at December 31 :
Interest Paid in Cash
— The Company paid $43.9 million , $64.4 million and $78.5 million of interest in 2013 , 2012 and 2011 , respectively.
Maturities
— At December 31, 2013 , borrowings under the $125.0 million Revolving Credit Facility will mature in 2018 and the
$790.5 million
balance on the Term Credit Facility will mature in 2020, while debt principal totaling $53.1 million will be paid in increments of
$2.1 million
quarterly through 2020.
F-28
2008 Senior Facility
2011 Credit Agreement 2013 Credit Agreement
(Amounts in millions)
Senior
Tranche
B Loan
Senior
revolving
credit
facility
Senior
secured
credit
facility
Senior
secured
incremental
term
Second
lien
notes
Senior
secured
revolving
credit
facility
Senior
secured
credit
facility
Total
Deferred
Financing
Costs
Balance at January 1, 2011
$
5.8
$
—
$
—
$
—
$
24.3
$
—
$
—
$
30.1
Capitalized deferred financing costs
—
3.3
8.7
3.2
5.0
—
—
20.2
Amortization of deferred financing
costs
(1.0
)
(0.5
)
(0.7
)
(0.1
)
(3.6
)
—
—
(
5.9
)
Transfer of deferred financing costs
(0.7
)
0.7
—
— —
—
—
—
Write-off of deferred financing costs
(4.1
) — (
1.1
)
— (
9.1
)
—
—
(
14.3
)
Balance at December 31, 2011
—
3.5
6.9
3.1
16.6
—
—
30.1
Amortization of deferred financing
costs
—
(
0.8
)
(1.2
)
(0.6
)
(2.6
)
—
—
(
5.2
)
Balance at December 31, 2012
—
2.7
5.7
2.5
14.0
—
—
24.9
Capitalized deferred financing costs
—
—
—
— —
0.6
10.7
11.3
Amortization of deferred financing
costs
—
(
0.2
)
(0.3
)
(0.1
)
(0.6
)
(0.4
)
(1.3
)
(2.9
)
Transfer of deferred financing costs
(2)
—
(
2.0
)
(1.1
)
(0.6
)
—
2.0
1.7
—
Write-off of deferred financing costs
—
(
0.5
)
(4.3
)
(1.8
)
(13.4
)
—
—
(
20.0
)
Balance at December 31, 2013
$
—
$
—
$
—
$
—
$
—
$
2.2
$
11.1
$
13.3
(Amounts in millions) 2013
2012 2011
Prepayment penalty
$
21.5
$
—
$
23.2
Write-off of unamortized deferred financing costs
20.0
—
14.3
Write-off of debt discount upon prepayments
2.3
—
—
Debt modification costs
1.5
—
—
Debt extinguishment costs
$
45.3
$
—
$
37.5