TripAdvisor 2011 Annual Report Download - page 102

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Table of Contents
pay a quarterly commitment fee, on the average daily unused portion of the Revolving Credit Facility for each fiscal quarter and fees in
connection with the issuance of letters of credit. The Term Loan and loans under the Revolving Credit Facility currently bear interest at LIBOR
plus 175 basis points, or the Eurocurrency Spread, or the alternate base rate (“ABR”) plus 75 basis points, and undrawn amounts are currently
subject to a commitment fee of 30 basis points.
As of December 31, 2011 we are using a one-month interest period Eurocurrency Spread which is approximately 2.06% per annum.
Interest is currently payable on a monthly basis while we are borrowing under the one-month interest rate period. The current interest rates are
based on current assumptions, leverage and LIBOR rates and do not take into account that rates will reset periodically.
The Term Loan principal will be repayable in quarterly installments on the last day of each calendar quarter equal to 1.25%, with the first
installment due on March 31, 2012. The payments for the year ending December 31, 2012 will be equal to 1.25% of the original principal
amount and will be equal to 2.5% of the original principal amount in each year thereafter, with the balance due on the final maturity date.
In connection with the Credit Agreement, we incurred debt financing costs totaling $3.5 million which were capitalized as deferred
financing costs of which approximately $1 million was recorded in other current assets and approximately $ 2.5 million was reported in other
long term assets on the consolidated and combined balance sheet as of December 31, 2011, net of amortization for the period from December 21,
2011 through December 31, 2011. These costs will be amortized from the date the Spin-Off was complete over the remaining term of the debt
instrument using the effective interest rate method and will be included in interest expense.
The Revolving Credit Facility includes $40 million of borrowing capacity available for letters of credit and $40 million for borrowings on
same-day notice. Immediately following the Spin-Off, $10 million was drawn down under the Revolving Credit Facility and is expected to be
repaid in full during 2012.
Total borrowings under the Credit Agreement consisted of the following (in thousands):
The future minimum principal payment obligations due under the Credit Agreement related to our Term Loan is as follows (in thousands):
98
December 31,
2011
Short
-
Term Debt:
Revolving Credit Facility
$
10,000
Term Loan
20,000
Total Short
-
Term Borrowings
$
30,000
Long
-
Term Debt:
Term Loan
$
380,000
Total Long
-
Term Borrowings
$
380,000
Year Ending December 31,
Payment
Amount
2012
$
20,000
2013
$
40,000
2014
$
40,000
2015
$
40,000
2016
$
260,000
Total
$
400,000