NetSpend 2015 Annual Report Download - page 70

The Credit Agreement for the aforementioned loan provided for a $168.0 million unsecured five-year term loan
to the Company, which was repaid in 2012 and a $252.0 million five year unsecured revolving credit facility. The
principal balance of loans outstanding under the credit facility bears interest at a rate of LIBOR plus an applicable
margin of 0.60%. The applicable margin could vary within a range from 0.27% to 0.725% depending on changes
in the Company’s corporate credit rating. Interest was paid on the last date of each interest period; however, if
the period exceeded three months, interest was paid every three months after the beginning of such interest
period. In addition, the Company paid each lender a fee in respect of the amount of such lender’s commitment
under the revolving credit facility (regardless of usage), ranging from 0.08% to 0.15% depending on the
Company’s corporate credit rating.
The Company was able to prepay the revolving 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
2015.
Required annual principal payments on long-term debt for the five years subsequent to December 31, 2015 are
summarized as follows:
(in thousands)
2016 ................................................................................. $ 50,364
2017 ................................................................................. 143,305
2018 ................................................................................. 690,000
2019 ................................................................................. —
2020 ................................................................................. —
Capital lease obligations as of December 31, 2015 and 2014 consist of:
(in thousands) 2015 2014
Capital lease obligations ........................................................... $7,131 14,101
Less current portion .............................................................. 3,468 7,127
Noncurrent portion of capital leases ................................................. $3,663 6,974
The Company acquires various computer equipment, software, machinery and equipment and furniture and
fixtures under capital lease obligations. Refer to Notes 9, 10 and 23 for more information. The capital lease
obligations have various payment terms for each capital lease obligation, including single payment leases,
monthly, quarterly and annually. The lease terms for the equipment and software range from one to six years.
The future minimum lease payments under capital leases as of December 31, 2015 are summarized as follows:
(in thousands)
2016 ................................................................................... $3,611
2017 ................................................................................... 2,687
2018 ................................................................................... 1,001
2019 ................................................................................... 63
2020 ................................................................................... —
Total minimum lease payments ............................................................. 7,362
Less amount representing interest ........................................................... (231)
Principal minimum lease payments .......................................................... $7,131
66