CDW 2012 Annual Report Download - page 39

Table of Contents
was used in each period to reduce our total long-term debt. Each debt transaction is described below under "Long-Term Debt and Financing
Arrangements".
Net cash used in financing activities decreased $254.7 million in 2011 compared to 2010, primarily driven by higher cash inflows of
$247.3 million from accounts payable-inventory financing. As discussed below under “Inventory Financing Arrangements,” in June 2011 we
entered into a new inventory financing agreement with a financial intermediary to facilitate the purchase of inventory from a certain vendor.
Inventory purchases from this vendor under the new agreement are included in accounts payable-inventory financing and reported as cash flows
from financing activities. A combination of the increase in overall purchase volume under inventory financing agreements to support higher net
sales in 2011 along with more favorable payment terms under the new inventory financing agreement drove the majority of the increase in cash
flows from financing activities during 2011 compared to 2010. The net impact of our debt transactions resulted in cash outflows of $346.5
million during 2011 compared to cash outflows of $352.7 million during 2010 as cash was used in each period to reduce our total long-term
debt. Each debt transaction is described below under "Long-Term Debt and Financing Arrangements".
Long
-Term Debt and Financing Arrangements
Long-term debt was as follows:
(1) Weighted-average interest rate as of December 31, 2012.
As of December 31, 2012, we were in compliance with the covenants under our various credit agreements as described below.
Senior Secured Asset-Based Revolving Credit Facility (“Revolving Loan”)
At December 31, 2012, we had no outstanding borrowings under the Revolving Loan, $1.7 million of undrawn letters of credit and
$275.9 million reserved related to the floorplan sub-facility.
On June 24, 2011, we entered into the Revolving Loan, a new five-year $900.0 million senior secured asset-based revolving credit
facility, with the facility being available to us for borrowings, issuance of letters of credit and floorplan financing for certain vendor products.
The Revolving Loan matures on June 24, 2016, subject to an acceleration provision discussed below. The Revolving Loan replaced our previous
revolving loan credit facility that was to mature on October 12, 2012. The Revolving Loan (i) increased the overall revolving credit facility
capacity available to us from $800.0 million to $900.0 million, (ii) increased the maximum aggregate amount of increases that may be made to
the revolving credit facility from $100.0 million to $200.0 million, (iii) added a maturity acceleration provision based upon excess cash
availability whereby the Revolving Loan may mature 45 days prior to the maturity of the non-extended portion of our senior secured term loan
facility, if excess cash availability does not exceed the outstanding borrowings of the subject maturing debt at the time of the test plus $150.0
million, (iv) increased the fee on the unused portion of the revolving credit facility from 25 basis points to either 37.5 or 50 basis points,
depending on the amount of utilization, (v) increased the applicable interest rate margin, and (vi) incorporated a $300.0 million floorplan sub-
facility, which was increased to $400.0 million on August 2, 2011. In connection with the termination of the previous facility, we recorded a loss
on extinguishment of long-term debt of $1.6 million in the consolidated statement of operations for the year ended December 31, 2011,
representing a write-
off of a portion of unamortized deferred financing costs. Fees of $7.2 million related to the Revolving Loan were capitalized
as deferred financing costs and are being amortized over the term of the facility on a straight-line basis.
35
(dollars in millions)
December 31,
Interest rate (1)
2012 2011
Senior secured asset-based revolving credit facility
—
%
$
—
$
—
Senior secured term loan facility
3.9
%
1,339.5
1,540.5
Senior secured notes due 2018
8.0
%
500.0
500.0
Senior notes due 2019
8.5
%
1,305.0
1,175.0
Unamortized premium on senior notes due 2019
5.0
—
Senior subordinated notes due 2017
12.535
%
621.5
721.5
Senior notes due 2015
—
%
—
129.0
Total long-term debt
3,771.0
4,066.0
Less current maturities of long-term debt
(40.0
)
(201.0
)
Long-term debt, excluding current maturities
$
3,731.0
$
3,865.0