Supercuts 2008 Annual Report Download - page 95

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. FINANCING ARRANGEMENTS (Continued)
Aggregate maturities of long-term debt, including associated fair value hedge obligations of $0.3 million and capital lease obligations of
$35.4 million at June 30, 2008, are as follows:
Senior Term Notes
Private Shelf Agreement
At June 30, 2008 and 2007, the Company had $255.2 and $189.7 million, respectively, in unsecured, fixed rate, senior term notes
outstanding under a Private Shelf Agreement. The notes require quarterly payments, and final maturity dates range from July 2008 through
December 2017. The interest rates on the notes range from 4.65 to 8.39 percent as of June 30, 2008 and 2007. In fiscal year 2008, we borrowed
$125.0 million, and amended the fixed charge coverage ratio under our Private Shelf Agreement.
The Private Shelf Agreement includes financial covenants including debt to earnings before interest, taxes, depreciation and amortization
(EBITDA) ratios, fixed charge coverage ratios and minimum net equity tests (as defined within the Private Shelf Agreement), as well as other
customary terms and conditions. The maturity date for the debt may be accelerated upon the occurrence of various Events of Default, including
breaches of the agreement, certain cross-default situations, certain bankruptcy related situations, and other customary events of default.
As a result of the fair value hedging activities discussed in Note 5 to the Consolidated Financial Statements, an adjustment of approximately
$0.3 and $0.9 million was made to increase the carrying value of the Company's long-term fixed rate debt at June 30, 2008 and 2007,
respectively.
Private Placement Senior Term Notes
In fiscal year 2005, the Company issued $200.0 million of senior unsecured debt to approximately twenty purchasers via a private
placement transaction pursuant to a Master Note Purchase Agreement. The placement was split into four tranches, with $100.0 million maturing
March 31, 2013 and $100.0 million maturing March 31, 2015. Of the debt maturing in 2013, $30.0 million was issued as fixed rate debt with a
rate of 4.97 percent. The remaining $70.0 million was issued as variable rate debt and is priced at 52 basis points over LIBOR. Of the
$100.0 million of the debt maturing in 2015, $70.0 million was issued at a fixed rate of 5.20 percent, with the remaining $30.0 million issued as
variable rate debt, priced at 55 basis points over LIBOR. All four tranches are non-amortizing and no principle payments are due until maturity.
Interest payments are due semi-annually.
The Master Note Purchase Agreement includes financial covenants including debt to EBITDA ratios, fixed charge coverage ratios and
minimum net equity tests (as defined within the Private Shelf
93
Fiscal year
(Dollars in thousands)
2009
$
230,224
2010
53,521
2011
91,790
2012
93,885
2013
123,898
Thereafter
171,429
$
764,747