American Home Shield 2010 Annual Report Download - page 94

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 12. Long-Term Debt
Long-term debt at December 31, 2010 and December 31, 2009 is summarized in the following table:
(In thousands) 2010 2009
Senior secured term loan facility maturing in 2014 $ 2,557,250 $ 2,583,750
10.75% /11.50% senior toggle notes maturing in 2015 1,061,000 1,061,000
Revolving credit facility maturing in 2014 — —
7.10% notes maturing in 2018(1) 65,549 63,624
7.45% notes maturing in 2027(1) 150,555 147,885
7.25% notes maturing in 2038(1) 60,633 59,824
Other 53,500 58,861
Less current portion (49,412) (64,395)
Total long-term debt $ 3,899,075 $ 3,910,549
The increase in the balance from 2009 to 2010 reflects the amortization of fair value adjustments related to purchase
accounting, which effectively increases the stated coupon interest rates.
(1)
The Company had $69.6 million and $70.2 million of accrued interest at December 31, 2010 and 2009, respectively. Accrued interest is included in
Accrued Liabilities—Other on the Consolidated Statement of Financial Position.
In connection with the completion of the Transactions, the Company entered into (i) the senior secured term loan facility, (ii) the Interim Loan Facility,
(iii) the Revolving Credit Facility and (iv) 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, ServiceMaster became obligated under the Term Facilities. The Term Facilities
consist of (i) the senior secured term loan facility providing for term loans in an aggregate principal amount of $2.65 billion and (ii) a pre-funded synthetic
letter of credit facility in an aggregate principal amount of $150.0 million. As of December 31, 2010, the Company had issued $143.1 million of letters of
credit, resulting in unused commitments under the synthetic letter of credit facility of $6.9 million.
The Term Facilities will mature on July 24, 2014. The interest rates applicable to the loans under the Term Facilities are based on a fluctuating rate of
interest measured by reference to either, at ServiceMaster's option, (i) an adjusted London inter-bank offered rate (adjusted for maximum reserves), plus a
borrowing margin (as of December 31, 2010—2.50%) or (ii) an alternate base rate, plus a borrowing margin (as of December 31, 2010—1.50%). The
borrowing margin, in each case,
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