American Home Shield 2010 Annual Report Download - page 97

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 12. Long-Term Debt (Continued)
Revolving Credit Facility
On the Closing Date, in connection with the completion of the Merger, ServiceMaster became obligated under the Revolving Credit Facility. The
Revolving Credit Facility provides for senior secured revolving loans and stand-by and other letters of credit. The Revolving Credit Facility limits outstanding
letters of credit to $75.0 million. As of December 31, 2010 and 2009, there were no revolving loans or letters of credit outstanding under the Revolving Credit
Facility. As of December 31, 2010 and 2009, the Company had $500.0 million of remaining capacity available under the Revolving Credit Facility.
On February 2, 2011, ServiceMaster entered into an amendment to its Revolving Credit Facility, which provides for senior secured revolving loans and
stand-by and other letters of credit. Prior to the amendment, the facility was scheduled to mature on July 24, 2013 and provided for maximum borrowing
capacity of $500.0 million with outstanding letters of credit limited to $75.0 million. The Company desired to extend the maturity date of the facility by one
year, and as an inducement for such extension offered to allow any lenders in the syndicate group that were willing to extend the maturity date by one year a
20 percent reduction of such lender's loan commitment. As a result of the amendment, the Company will have available borrowing capacity under its amended
Revolving Credit Facility of approximately $442.0 million through July 24, 2013 and will have approximately $229.0 million of available borrowing capacity
from July 25, 2013 through July 24, 2014. The Company will continue to have access to letters of credit up to $75.0 million through July 24, 2014.
The interest rates applicable to the loans under the Revolving Credit Facility will be based on a fluctuating rate of interest measured by reference to
either, at the borrower's option, (1) an adjusted London inter-bank offered rate (adjusted for maximum reserves), plus a borrowing margin (as of December 31,
2010—2.50%) or (2) an alternate base rate, plus a borrowing margin (as of December 31, 2010—1.50%). The borrowing margin, in each case, will be
adjusted from time to time based on the Consolidated Secured Leverage Ratio (as defined in the Revolving Credit Agreement) for the previous fiscal quarter.
The agreements governing the Term Facilities, the Permanent Notes and the Revolving Credit Facility contain certain covenants that, among other
things, limit or restrict the incurrence of additional indebtedness, liens, sales of assets, certain payments (including dividends) and transactions with affiliates,
subject to certain exceptions. The Company was in compliance with the covenants under these agreements at December 31, 2010.
Future scheduled long-term debt payments are $49.3 million, $44.7 million, $31.8 million, $2,482.0 million and $1,063.3 million for the years ended
December 31, 2011, 2012, 2013, 2014 and 2015, respectively. The scheduled long-term debt payments of $49.3 million in 2011 include the repayment of
$10.0 million transferred under the Company's accounts receivable securitization arrangement, as described in Note 14.
Note 13. Cash and Marketable Securities
Cash, money market funds and certificates of deposits, with maturities of three months or less when purchased, are included in the Consolidated
Statements of Financial Position caption "Cash and Cash Equivalents." As of December 31, 2010 and 2009, the Company's investments consist primarily of
domestic publicly traded debt and certificates of deposit totaling $100.9 million and $93.9 million, respectively, and common equity securities of
$39.7 million and $38.3 million, respectively.
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