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Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2011, 2010 and 2009
NOTE 9: ACCRUED EXPENSES
Accrued expenses as of December 31, 2011 and 2010 consisted of the following:
NOTE 10: DEBT
The Company's outstanding borrowings as of December 31, 2011 and 2010 consisted of the following:
In connection with its acquisition of Skylight in 2008, the Company entered into a credit facility with a syndicate of banks with JP Morgan
as administrative agent (the "prior credit facility"). The prior credit facility provided financing of $105.0 million, consisting of a $75.0 million
term loan and a $30.0 million revolving credit facility that included a $2.0 million swingline facility and commitments for up to $2.5 million in
letters of credit. Loans under the prior credit facility bore interest at the greater of 6.0% per annum or at a market rate based on either the
alternate base rate or LIBOR, plus a spread. The Company repaid all amounts owed under the prior credit facility in September 2010.
In September 2010, the Company entered into a new credit facility with a syndicate of banks with Sun Trust Bank as administrative agent.
This facility provides a $135.0 million revolving credit facility with an accordion feature that allows the Company to request increases to the
facility of up to $50.0 million. The initial borrowings of $58.5 million under this facility were used to repay the $56.3 million of outstanding
indebtedness under the Company's prior credit facility, $0.7 million of accrued interest on such indebtedness and $1.5 million of debt issuance
costs associated with the current credit facility. In 2010, the Company recorded a $0.7 million loss related to the write-off of remaining
capitalized debt issuance costs associated with its prior credit facility.
78
December 31,
2011 2010
(in thousands of
dollars)
Commissions payable to distributors
$
5,057
$
4,986
Accrued wages and related personnel expenses
5,035
8,541
Other accrued liabilities
10,845
11,540
$
20,937
$
25,067
December 31,
2011 2010
(in thousands of
dollars)
Revolving credit facility
$
58,500
$
58,500
Capital lease
—
1,354
Total long
-
term debt
58,500
59,854
Less:
Current portion of capital lease
—
1,354
Long
-
term debt, current portion
—
1,354
Long
-
term debt, net of current portion
$
58,500
$
58,500