Redbox 2003 Annual Report Download - page 47

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COINSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001
NOTE 4: ACCRUED LIABILITIES
Accrued liabilities consisted of the following at December 31:
2003 2002
(in thousands)
Payroll related expenses ....................................... $3,769 $ 4,964
Interest payable .............................................. 163 297
Estimated taxes .............................................. 1,002 1,356
Service contract providers ...................................... 2,137 1,846
Other ...................................................... 2,442 1,717
$9,513 $10,180
NOTE 5: LONG-TERM DEBT
Our term debt at December 31 consisted of the following:
2003 2002
(in thousands)
Bank of America term loan .................................. $13,250 $34,667
Bank of America revolving line of credit ........................ 2,500 —
15,750 34,667
Less current portion ........................................ (13,250) (13,917)
Long-term debt ............................................ $ 2,500 $20,750
Bank of America credit facility: On April 18, 2002, we entered into a credit agreement with Bank of
America, N.A., for itself and as agent for US Bank National Association, Silicon Valley Bank, KeyBank National
Association and Comerica Bank—California. The credit agreement provides for a senior secured credit facility of
$90.0 million, consisting of a revolving loan commitment of $50.0 million and a term loan commitment of $40.0
million. Loans made pursuant to the credit agreement are secured by a first priority security interest in
substantially all of our assets and the assets of our subsidiary, including the pledge of our subsidiary’s capital
stock.
Advances under this credit facility may be made as either base rate loans or LIBOR rate loans at our
election. Applicable interest rates are based upon either the LIBOR or base rate plus an applicable margin
dependent upon a consolidated leverage ratio of certain outstanding indebtedness to EBITDA (to be calculated in
accordance with the terms specified in the credit agreement). Initially, interest rates payable upon advances were
based upon either an initial rate of LIBOR plus 225 basis points or the base rate plus 75 basis points. As of
December 31, 2003, interest rates were 2.92%, based upon LIBOR plus 175 basis points resulting from an
improvement in our consolidated leverage ratio.
The credit facility contains standard negative covenants and restrictions on actions by us including, without
limitation, restrictions on common stock repurchases, liens, investments, capital expenditures, indebtedness,
restricted payments including cash payments of dividends, fundamental changes or dispositions of our assets,
among other restrictions. In addition, the credit agreement requires that we meet certain financial covenants,
ratios and tests, including maintaining a minimum quarterly consolidated net worth and quarterly consolidated
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