O'Reilly Auto Parts 2011 Annual Report Download - page 70

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NOTE 5—LONG-TERM DEBT AND CAPITAL LEASES
The following table identifies the amounts included in ―Current portion of long-term debt‖ and ―Long-term debt, less current portion‖
on the accompanying Consolidated Balance Sheets as of December 31, 2011 and 2010 (in thousands):
ABL Credit Facility $ - $ 356,000
Revolving Credit Facility - -
4.875% Senior Notes due 2021
(1)
, effective interest rate of 4.945% 496,824 -
4.625% Senior Notes due 2021
(2)
, effective interest rate of 4.642% 299,493 -
Capital leases 1,257 2,704
Total debt and capital lease obligations 797,574 358,704
Current portion of long-term debt 662 1,431
Long-term debt, less current portion $ 796,912 $ 357,273
(1)
Net of unamortized discount of $3.2 million
(2)
Net of unamortized discount of $0.5 million
December 31,
2011
December 31,
2010
The following table identifies the principal maturities of long-term debt and capital lease obligations as of December 31, 2011 (in
thousands):
2012 $ 662
2013 286
2014 130
2015 89
2016 71
Thereafter 796,336
Total $ 797,574
Asset-based revolving credit facility:
On July 11, 2008, the Company entered into a credit agreement for a five-year asset-based revolving credit facility, the ABL Credit
Facility, which was scheduled to mature in July of 2013. At December 31, 2010, the Company had outstanding borrowings of $356
million under the ABL Credit Facility, of which $106 million were not covered under an interest rate swap contract. All outstanding
borrowings under the ABL Credit Facility were repaid, and all related interest rate swap contracts were terminated on January 14,
2011, and the ABL Credit Facility was retired concurrent with the issuance of the Company’s 4.875% Senior Notes due 2021, as
further described below. In conjunction with the retirement of the Company’s ABL Credit Facility, the Company recognized a one-
time non-cash charge to write off the balance of debt issuance costs related to the ABL Credit Facility in the amount of $21.6 million
and a one-time charge related to the termination of the Company’s interest rate swap contracts in the amount of $4.2 million, which
are included in ―Other income (expense)‖ on the accompanying Consolidated Statements of Income for the year ended December 31,
2011.
Unsecured revolving credit facility:
On January 14, 2011, the Company entered into a new credit agreement for a five-year $750 million unsecured revolving credit
facility (the ―Revolving Credit Facility‖) arranged by Bank of America, N.A. (―BA‖) and Barclays Capital, originally scheduled to
mature in January of 2016. On September 9, 2011, the Company amended the credit agreement (the ―Credit Agreement‖), decreasing
the aggregate commitments under the Revolving Credit Facility to $660 million, extending the maturity date on the Credit Agreement
to September of 2016 and reducing the facility fee and interest rate margins for borrowings under the Revolving Credit Facility. In
conjunction with the amendment to the Credit Agreement, the Company recognized a one-time charge related to the modification in
the amount of $0.3 million, which is included in ―Other income (expense)‖ on the accompanying Consolidated Statements of Income
for the twelve months ended December 31, 2011. The Credit Agreement includes a $200 million sub-limit for the issuance of letters
of credit and a $75 million sub-limit for swing line borrowings under the Revolving Credit Facility. As described in the Credit
Agreement governing the Revolving Credit Facility, the Company may, from time to time subject to certain conditions, increase the
aggregate commitments under the Revolving Credit Facility by up to $200 million. As of December 31, 2011, the Company had
outstanding letters of credit, primarily to satisfy workers’ compensation, general liability and other insurance policies, in the amount
of $59.9 million, reducing the aggregate availability under the Revolving Credit Facility by that amount. As of December 31, 2011,
the Company had no outstanding borrowings under the Revolving Credit Facility.
FORM 10-K