TripAdvisor 2015 Annual Report Download - page 87

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OnJune26,2015,theentireoutstandingprincipalonourTermLoanintheamountof$290millionwasrepaidwithborrowingsfromour2015Credit
Facility(describedbelow)andthe2011CreditFacilitywassubsequentlyterminated.TheCompanywasabletorepaytheTermLoandebtandterminatethe2011
CreditFacilitywithoutpremiumorpenalty.Therewasnoresultinglossonearlyextinguishmentofthisdebt.
DuringtheyearsendedDecember31,2015,2014and2013,werecordedtotalinterestandcommitmentfeesonour2011CreditFacilityof$3million,$6
millionand$8million,respectively,tointerestexpenseonourconsolidatedstatementsofoperations.Allunpaidinterestandcommitmentfeeamountsasof
December31,2014werenotmaterial.
2015 Credit Facility
OnJune26,2015,weenteredintoafiveyearcreditagreementwithJPMorganChaseBank,N.A.,asAdministrativeAgent;J.P.MorganEuropeLimited,as
LondonAgent;MorganStanleyBank,N.A.;BankofAmerica,N.A.;BNPParibas;SunTrustBank;WellsFargoBank,NationalAssociation;RoyalBankof
Canada;BarclaysBankPLC;U.S.BankNationalAssociation;Citibank,N.A.;TheBankofTokyo-MitsubishiUFJ,Ltd.;GoldmanSachsBankUSA;andDeutsche
BankAGNewYorkBranch(the“2015CreditFacility”).
The2015CreditFacility,amongotherthings,providesfor(i)a$1billionunsecuredrevolvingcreditfacility,(ii)aninterestrateonborrowingsand
commitmentfeesbasedontheCompany’sanditssubsidiaries’consolidatedleverageratioand(iii)uncommittedincrementalrevolvingloanandtermloan
facilities,subjecttocompliancewithaleveragecovenantandotherconditions.Anyoverdueamountsunderorinrespectoftherevolvingcreditfacilitynotpaid
whendueshallbearinterestat(i)inthecaseofprincipal,theapplicableinterestrateplus2.00%perannum,(ii)inthecaseofinterestdenominatedinSterlingor
Euro,theapplicablerateplus2.00%perannumand(iii)inthecaseofinterestdenominatedinUSDollars,2.00%perannumplustheAlternateBaseRateplusthe
interestratespreadapplicabletoABRloans.TheCompanymayborrowfromtherevolvingcreditfacilityinU.Sdollars,EurosandBritishpoundsterlingwitha
termoffiveyearsexpiringJune26,2020.
Weimmediatelyborrowed$290millionfromthisrevolvingcreditfacility,whichwasusedtorepayalloutstandingborrowingspursuanttothe2011Credit
FacilityandisrecordedinlongtermliabilitiesonourconsolidatedbalancesheetasofDecember31,2015.Thereisnospecificrepaymentdatepriortothefive-
yearmaturitydateforborrowingsunderthisrevolvingcreditfacility.DuringtheyearendedDecember31,2015,theCompanyhasrepaid$90millionofour
outstandingborrowingsonthe2015CreditFacility.BasedontheCompany’scurrentleverageratio,ourborrowingsbearinterestatLIBORplus125basispoints,
ortheEurocurrencySpread.TheCompanyiscurrentlyborrowingunderaone-monthinterestperiodof1.7%perannum,usingaone-monthinterestperiod
EurocurrencySpread,whichwillresetperiodically.InterestwillbepayableonamonthlybasiswhiletheCompanyisborrowingundertheone-monthinterestrate
period.
Wearealsorequiredtopayaquarterlycommitmentfee,onthedailyunusedportionoftherevolvingcreditfacilityforeachfiscalquarterandfeesin
connectionwiththeissuanceoflettersofcredit.Unusedrevolvercapacityiscurrentlysubjecttoacommitmentfeeof20.0basispoints,giventheCompany’s
currentleverageratio.The2015CreditFacilityincludes$15millionofborrowingcapacityavailableforlettersofcreditand$40millionforborrowingsonsame-
daynotice.AsofDecember31,2015,wehadissued$2millionofoutstandinglettersofcreditunderthe2015CreditFacility.
DuringtheyearendedDecember31,2015,werecordedtotalinterestandcommitmentfeesonour2015CreditFacilityof$2million,respectively,to
interestexpenseonourconsolidatedstatementsofoperations.AllunpaidinterestandcommitmentfeeamountsasofDecember31,2015werenotmaterial.
Inconnectionwiththe2015CreditFacility,weincurredlenderfeesanddebtfinancingcoststotaling$3million,whichwerecapitalizedasdeferred
financingcostsandrecordedtootherlong-termassetsontheconsolidatedbalancesheet.DuringtheyearendedDecember31,2015,amortizationexpense
recordedtointerestexpenseonourconsolidatedstatementsofoperationswasnotmaterial.Thesecostswillcontinuetobeamortizedoverthetermofthe2015
CreditFacilityusingtheeffectiveinterestratemethod.
Wemayvoluntarilyrepayanyoutstandingborrowingunderthe2015CreditFacilityatanytimewithoutpremiumorpenalty,otherthancustomarybreakage
costswithrespecttoEurocurrencyloans.Certainwholly-owneddomesticsubsidiariesoftheCompanyhaveagreedtoguaranteetheCompany’sobligationsunder
the2015CreditFacility.
The2015CreditFacilitycontainsanumberofcovenantsthat,amongotherthings,restrictourabilityto:incuradditionalindebtedness,createliens,enter
intosaleandleasebacktransactions,engageinmergersorconsolidations,sellortransferassets,paydividendsanddistributions,makeinvestments,loansor
advances,prepaycertainsubordinatedindebtedness,makecertainacquisitions,engageincertaintransactionswithaffiliates,amendmaterialagreementsgoverning
certainsubordinatedindebtedness,andchangeour
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