ServiceMagic 2012 Annual Report Download - page 90

IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
consideration other factors such as credit quality and maturity. See Note 2 for description of the method used to determine the fair value of
marketable securities and long-term marketable equity securities. The fair value of long-term debt, including current maturities, is determined
only for disclosure purposes and is based on Level 3 inputs.
NOTE 11—LONG-TERM DEBT
The balance of long-term debt is comprised of:
On December 21, 2012, the Company issued $500.0 million aggregate principal amount of 4.75% Senior Notes due December 15, 2022 in
a private offering. The 2012 Senior Notes were issued at par. At any time prior to December 15, 2017, we may redeem the 2012 Senior Notes at
a redemption price equal to the sum of the principal amount thereof, plus accrued and unpaid interest and a make-
whole premium. Thereafter, we
may redeem the 2012 Senior Notes at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable
redemption date, if redeemed during the 12-month period beginning on December 15 of the years indicated below:
Certain domestic subsidiaries have unconditionally guaranteed the 2012 Senior Notes. The indenture governing the 2012 Senior Notes
contains covenants that limit our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness, pay dividends or
make other distributions, repurchase or redeem our stock, make investments, sell assets, incur liens, enter into agreements restricting our
subsidiaries' ability to pay dividends, enter into transactions with affiliates and consolidate, and merge or sell all or substantially all of our assets.
On December 21, 2012, the Company entered into a $300.0 million revolving credit facility, which expires on December 21, 2017. The
annual fee to maintain the revolving credit facility is 25 basis points. At December 31, 2012, there are no outstanding borrowings under the
revolving credit facility. IAC's obligation under the revolving credit facility is unconditionally guaranteed by certain domestic subsidiaries and is
also secured by the stock of certain of our domestic and foreign subsidiaries.
In connection with the financing of the construction of IAC's corporate headquarters, on August 31, 2005, the
New York City Industrial Development Agency (the "Agency") issued
$80 million in aggregate principal amount of
New York City Industrial Development Agency Liberty Bonds (IAC/InterActiveCorp Project), Series 2005 (the "Liberty Bonds"). IAC is
obligated to make all principal, interest and other payments in respect of the Liberty Bonds pursuant to certain security and payment
arrangements between IAC and the Agency, which arrangements were entered into in connection with the closing of the Liberty Bond issuance.
IAC's payment obligation under the Liberty Bonds is collateralized by a mortgage interest in the corporate headquarters building.
Long-term debt maturities are as follows:
December 31,
2012
2011
(In thousands)
7.00% Senior Notes due January 15, 2013 (the "2002 Senior Notes"); interest payable each January 15
and July 15 which commenced July 15, 2003
$
15,844
$
15,844
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15
and December 15 commencing June 15, 2013
500,000
—
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035; interest
payable each March 1 and September 1 which commenced March 1, 2006
80,000
80,000
Total long-term debt
595,844
95,844
Less current maturities
(15,844
)
—
Long-term debt, net of current maturities
$
580,000
$
95,844
Year Percentage
2017
102.375
%
2018
101.583
%
2019
100.792
%
2020 and thereafter
100.000
%