Redbox 2014 Annual Report Download - page 83

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75
Interest Expense
Dollars in thousands
Year Ended December 31,
2014 2013 2012
Cash interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 41,562 $ 25,289 $ 12,833
Non-cash interest expense:
Amortization of debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,606 4,674 7,109
Amortization of deferred financing fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,510 1,720 2,126
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (550) (2,700)
Total non-cash interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,116 5,844 6,535
Total cash and non-cash interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,678 31,133 19,368
Loss from early extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,018 6,013 953
Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 47,696 $ 37,146 $ 20,321
Senior Unsecured Notes Due 2019
On March 12, 2013, we entered into an indenture pursuant to which we issued $350.0 million principal amount of 6.000%
Senior Notes due 2019 (the “Senior Notes due 2019”) at par for proceeds, net of expenses, of $343.8 million. The expenses
were allocated between debt discount and deferred financing fees based on their nature. Each of our direct and indirect U.S.
subsidiaries guarantees the Senior Notes due 2019. As of December 31, 2014, we were in compliance with the covenants of the
related indenture.
Senior Unsecured Notes Due 2021
On June 9, 2014, we entered into an indenture pursuant to which we issued $300.0 million principal amount of 5.875% Senior
Notes due 2021 (the "Senior Notes due 2021") at par for proceeds, net of expenses, of $294.0 million. The expenses were
allocated between debt discount and deferred financing fees based on their nature. Each of our direct and indirect U.S.
subsidiaries guarantees the Senior Notes due 2021.
The Senior Notes due 2021 and related guarantees:
• are general unsecured obligations and are effectively subordinated to all of our and our subsidiary guarantors’ existing
and future secured debt to the extent of the collateral securing that secured debt, and
• will rank equally to all of our and our subsidiary guarantors’ other unsecured and unsubordinated indebtedness.
In addition, the Senior Notes due 2021:
• will be effectively subordinated to all of the liabilities of our existing and future subsidiaries that are not guaranteeing
the Senior Notes due 2021,
• require interest payable on June 15 and December 15 of each year, beginning on December 15, 2014, and
• mature on June 15, 2021.