NetSpend 2013 Annual Report Download - page 55

credit facility and the term loan in whole or in part at
any time without premium or penalty, subject to
reimbursement of the lenders’ customary breakage
and redeployment costs in the case of prepayment of
LIBOR borrowings. The Credit Agreement included
covenants requiring the Company to maintain certain
minimum financial ratios. The Company did not use
the revolving credit facility in 2012 or 2011.
TSYS acquired additional mainframe and distributed
software licenses to increase capacity as a result of
continued increases in transaction volumes. The
Company entered into a $20.0 million financing
agreement in December 2013 to purchase these
additional software licenses. The balance at
December 31, 2013 was $20.0 million.
TSYS also acquired additional mainframe software
licenses to increase capacity in 2012. The Company
entered into an $8.6 million and an $11.9 million
financing agreement in June and December 2012,
respectively, to purchase these additional software
licenses. The balance at December 31, 2013 was $4.6
million and $8.3 million, respectively.
In December 2010, the Company obtained a
$39.8 million note payable from a third-party vendor
related to financing the purchase of distributed
systems software. The note was no longer
outstanding at December 31, 2013.
On October 30, 2008, the Company’s International
Services segment obtained a credit agreement from
a third-party to borrow up to ¥2.0 billion, or
approximately $21 million, in a Yen-denominated
three-year loan to finance activities in Japan. The rate
is LIBOR plus 80 basis points. The Company initially
made a draw of ¥1.5 billion, or approximately
$15.1 million. In January 2009, the Company made
an additional draw down of ¥250 million, or
approximately $2.8 million. In April 2009, the
Company made an additional draw down of
¥250 million, or approximately $2.5 million. On
December 30, 2011, the Company modified its loan
to extend the maturity date to November 5, 2014. In
December 2013, the Company repaid this loan.
In addition, TSYS maintains an unsecured credit
agreement with Columbus Bank and Trust. The credit
agreement has a maximum available principal
balance of $5.0 million, with interest at prime. TSYS
did not use the credit facility during 2013, 2012 or
2011.
Long-term debt as of December 31 consists of:
(in thousands) 2013 2012
$550,000,000 2.375% Senior
Notes, due June 1, 2018 (5
year tranche), net of
discount ................... $ 549,858 —
$550,000,000 3.75% Senior
Notes, due June 1, 2023 (10
year tranche), net of
discount ................... 546,027 —
LIBOR + 1.125%, unsecured term
loan, due April 8, 2018, with
quarterly principal and interest
payments .................. 195,000 —
LIBOR + 1.125%, unsecured term
loan, due September 10, 2017,
with quarterly principal and
interest payments ............ 138,750 146,250
LIBOR + 0.80%, unsecured term
loan, due November 5, 2014,
with principal paid at
maturity .................... —23,236
1.50% note payable, due
December 31, 2015, with
monthly interest and principal
payments .................. 20,000 —
1.50% note payable, due
December 31, 2013, with
monthly interest and principal
payments .................. —13,452
1.50% note payable, due January
31, 2016, with monthly interest
and principal payments ....... 8,269 11,825
1.50% note payable, due July 31,
2015, with monthly interest and
principal payments ........... 4,604 7,457
Total debt .................. 1,462,508 202,220
Less current portion .......... 34,257 27,361
Noncurrent portion of long-
term debt ................ $1,428,251 174,859
Required annual principal payments on long-term
debt for the five years subsequent to December 31,
2013 are summarized as follows:
(in thousands)
2014 ............................... $ 34,257
2015 ............................... 37,030
2016 ............................... 30,336
2017 ............................... 125,000
2018 ............................... 690,000
Capital lease obligations as of December 31 consist
of:
(in thousands) 2013 2012
Capital lease obligations ....... $30,532 30,418
Less current portion ........... 23,032 13,263
Noncurrent portion of capital
leases ..................... $ 7,500 17,155
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