TripAdvisor 2011 Annual Report Download - page 53

Table of Contents
Investing Activities
For the year ended December 31, 2010, net cash used in investing activities decreased slightly due to lower net payments to Expedia and
lower cash paid for acquisitions, partially offset by the purchase of short-term investments and higher capital expenditures.
Financing Activities
For the year ended December 31, 2010, net cash provided by financing activities was primarily comprised of short-term borrowings of $2
million and excess tax benefits of $2 million.
Term Loan Facility Due 2016 and Revolving Credit Facility Related to the Spin-Off
Overview
On December 20, 2011, in connection with the Spin-Off, we entered into a credit agreement with certain lenders, or the Credit Agreement
that provides $600 million of borrowing facilities, including:
The proceeds of the Term Loan were used to fund the distribution to Expedia described above and in “Note 1— Organization and Basis of
Presentation
” in the notes to our consolidated and combined financial statements. Any loans under our Revolving Credit Facility have been
used for general corporate purposes.
The Term Loan and any loans under the Revolving Credit Facility bear interest by reference to a base rate or a eurocurrency rate, in either
case plus an applicable margin based on our leverage ratio. We are also required to 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, or 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 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. A 25 basis point change in the
interest rate on the current Term Loan balance would result in an increase or decrease to interest expense of approximately $1 million per
annum.
The Term Loan principal will be repayable in quarterly installments equal to 1.25% of the original principal amount in the calendar year
2012, due on the last day of each calendar with the first installment due on March 31, 2012, and 2.5% of the original principal amount in each
year thereafter with the balance due on the final maturity date. The future minimum principal payment obligations due under the Term Loan are
as follows (in thousands):
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• a term loan facility, or the Term Loan, in an aggregate principal amount of $400 million with a term of five years due December
2016; and
• a revolving credit facility, or the Revolving Credit Facility, in an aggregate principal amount of $200 million available in U.S.
dollars, Euros and British pound sterling with a term of five years expiring December 2016.
Year Ending December 31,
Principal Payments
2012
$
20,000
2013
40,000
2014
40,000
2015
40,000
2016
260,000
Total
$
400,000