American Home Shield 2009 Annual Report Download - page 113

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 14. Long-Term Debt
Long-term debt at December 31, 2009 and December 31, 2008 is summarized in the following table:
Successor
(In thousands) 2009 2008
Senior secured term loan facility maturing in 2014 $ 2,583,750 $ 2,610,250
10.75% /11.50% senior toggle notes maturing in 2015(1) 1,061,000 1,150,000
Revolving credit facility maturing in 2013 — 165,000
7.10% notes maturing in 2018(2) 63,624 61,698
7.45% notes maturing in 2027(2) 147,885 145,215
7.25% notes maturing in 2038(2) 59,824 59,016
Other 58,861 74,913
Less current portion (64,395) (221,269)
Total long-term debt $ 3,910,549 $ 4,044,823
During the first quarter of 2009, the Company completed open market purchases of $89.0 million in face value of the
Permanent Notes for a cost of $41.0 million. The debt acquired by the Company has been retired, and the Company has
discontinued the payment of interest. The Company recorded a gain on extinguishment of debt of $46.1 million in its
Consolidated Statement of Operations for the year ended December 31, 2009 related to these retirements. Included in
the gain on extinguishment of debt are write-offs of unamortized debt issuance costs related to the extinguished debt of
$1.9 million.
The increase in the balance from 2008 to 2009 reflects the amortization of fair value adjustments related to purchase
accounting, which effectively increases the stated coupon interest rates.
(1)
(2)
In connection with the completion of the Transactions, the Company (i) entered into the Senior Term Loan Facility, (ii) entered into a new $1.15 billion
senior unsecured interim loan facility, (iii) entered into the Revolving Credit Facility and (iv) entered into a new synthetic letter of credit facility in an
aggregate principal amount of $150.0 million. Additionally, the Company repaid certain of its existing indebtedness, including the 2009 Notes. The 2009
Notes were called for redemption on the Closing Date and were redeemed on August 29, 2007. Additionally, the Company utilized a portion of the proceeds
from the Term Facilities described and defined below to repay at maturity the 2007 Notes. The debt issuance costs related to the Merger have been capitalized
and these costs are being amortized to interest expense over the terms of the underlying debt instruments.
Term Facilities
On the Closing Date, in connection with the completion of the Merger, Acquisition Co. entered into the Term Facilities. The rights and obligations of
Acquisition Co. under the Term Facilities were assumed by ServiceMaster on the Closing Date of the Merger.
The Term Facilities consist of (1) the Senior Term Loan Facility providing for term loans in an aggregate principal amount of $2.65 billion and (2) a pre-
funded synthetic letter of credit facility in
104