American Home Shield 2011 Annual Report Download - page 103

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 12. Long-Term Debt
Long-term debt as of December 31, 2011 and December 31, 2010 is summarized in the following table:
(In thousands) 2011 2010
Senior secured term loan facility maturing in 2014 $ 2,530,750 $ 2,557,250
10.75% senior notes maturing in 2015 996,000 1,061,000
Revolving credit facility maturing in 2017 — —
7.10% notes maturing in 2018(1) 67,474 65,549
7.45% notes maturing in 2027(1) 153,225 150,555
7.25% notes maturing in 2038(1) 61,441 60,633
Other 66,980 53,500
Less current portion (51,838) (49,412)
Total long-term debt $ 3,824,032 $ 3,899,075
The increase in the balance from 2010 to 2011 reflects the amortization of fair value adjustments related to purchase
accounting, which increases the effective interest rate from the coupon rates shown above.
(1)
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 ("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, 2011, the Company had issued
$130.3 million of letters of credit, resulting in unused commitments under the synthetic letter of credit facility of $19.7 million.
The Term Loan Facility and the guarantees thereof are secured by substantially all of the tangible and intangible assets of ServiceMaster and certain of
our domestic subsidiaries, excluding certain subsidiaries subject to regulatory requirements in various states, ("Guarantors"), including pledges of all the
capital stock of all direct domestic subsidiaries (other than foreign subsidiary holding companies, which are deemed to be foreign subsidiaries) owned by
ServiceMaster or any Guarantor and of up to 65% of the capital stock of each direct foreign subsidiary owned by ServiceMaster or any Guarantor. The Term
Loan Facility security interests are subject to certain exceptions, including, but not limited to, exceptions for (i) equity interests, (ii) indebtedness or other
obligations of subsidiaries, (iii) real estate or (iv) any other assets, if the granting of a security interest therein would require that any notes issued under
ServiceMaster's indenture dated as of
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