Sunbeam 2004 Annual Report Download - page 62

Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2004
Prior to the Amended Credit Agreement, the Company’s former credit agreement (“Old Credit
Agreement”) was due to mature on April 24, 2007. The revolving credit facility and the term loan facility
bore interest at a rate equal to (i) the Eurodollar Rate pursuant to an agreed formula or (ii) a Base Rate
equal to the higher of (a) the Bank of America prime rate and (b) the federal funds rate plus .50%, plus,
in each case, an applicable margin ranging from 2.00% to 2.75% for Eurodollar Rate loans and from
.75% to 1.50% for Base Rate loans. The Old Credit Agreement contained restrictions on the conduct of
the Company’s business similar to the restrictions under the Amended Credit Agreement. The Old
Credit Agreement was replaced by the Amended Credit Agreement.
Until it was replaced by the Old Credit Agreement on April 24, 2002, our senior credit facility, as
amended, provided for a revolving credit facility of $40 million and a term loan which amortized
periodically as required by the terms of the agreement. Interest on borrowings under the term loan and
the revolving credit facilities were based upon fixed increments over adjusted LIBOR or the agent bank’s
alternate borrowing rate as defined in the agreement. The agreement also required the payment of
commitment fees on the unused balance. During the first quarter of 2002, approximately $38 million of
tax refunds the Company received were used to repay a portion of the outstanding amounts under this
credit facility.
Debt disclosures
As of December 31, 2004, the Notes traded at a premium, resulting in an estimated fair value, based
upon quoted market prices, of approximately $198.5 million compared to the book value of $179.9
million.
As of December 31, 2004, the Company had $302.9 million outstanding under its term loan facilities
and no amounts outstanding under the revolving credit facility of the Second Amended Credit
Agreement. As of December 31, 2004, net availability under the revolving credit agreement was
approximately $44.2 million, after deducting $25.8 million of issued letters of credit. As discussed in
Note 3, the letters of credit outstanding include an amount of approximately $20.0 million securing the
USPC holdback amount. The Company is required to pay commitment fees on the unused balance of
the revolving credit facility. At December 31, 2004, the annual commitment fee on unused balances was
0.50%.
As of December 31, 2003, the Company had $199.6 million outstanding under the term loan
facilities and no outstanding amounts under the revolving credit facility of the Amended Credit
Agreement. Net availability under the revolving credit agreement was approximately $64.9 million as of
December 31, 2003, after deducting $5.1 million of issued letters of credit.
The Company’s long-term debt maturities, net of unamortized debt discounts/premiums, for the
five years following December 31, 2004 and thereafter are as follows (in thousands):
Year ending December 31, Amount
2005 ........................................... $ 16,935
2006 ........................................... 19,773
2007 ........................................... 138,441
2008 ........................................... 129,200
2009 ........................................... (16)
Thereafter ...................................... 183,118
$487,451
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