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Table of Contents
CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. Long-Term Debt
Long-term debt as of December 31, 2015 is as follows:
(dollars in millions)
Interest Rate
Principal
Unamortized Discount,
Premium, and Deferred
Financing Costs (1)
Total
Year Ended December 31, 2015
Senior secured asset-based revolving credit facility
—%
$ —
$ —
$ —
Kelway revolving credit facility
—%
—
—
—
Senior secured term loan facility
3.25%
1,498.1
(6.7)
1,491.4
Kelway term loan
1.98%
88.4
(0.6)
87.8
Senior notes due 2022
6.0%
600.0
(6.6)
593.4
Senior notes due 2023
5.0%
525.0
(6.2)
518.8
Senior notes due 2024
5.5%
575.0
(6.7)
568.3
Total long-term debt
3,286.5
(26.8)
3,259.7
Less current maturities of long-term debt
(27.2)
—
(27.2)
Long-term debt, excluding current maturities
$ 3,259.3
$ (26.8)
$ 3,232.5
Year Ended December 31, 2014
Senior secured asset-based revolving credit facility
—%
$ —
$ —
$ —
Senior secured term loan facility
3.25%
1,513.50
(8.3)
1,505.2
Senior notes due 2019 (2)
8.5%
503.9
(3.1)
500.8
Senior notes due 2022
6.0%
600.0
(7.6)
592.4
Senior notes due 2024
5.5%
575.0
(7.4)
567.6
Total long-term debt
3,192.4
(26.4)
3,166.0
Less current maturities of long-term debt
(15.4)
—
(15.4)
Long-term debt, excluding current maturities
$ 3,177.0
$ (26.4)
$ 3,150.6
(1) As a result of the adoption of ASU 2015-03 during the second quarter of 2015, historical periods have been revised to reflect the change in the presentation
of deferred financing costs, which are now shown as a reduction of long-term debt, instead of being presented as a separate asset on the Consolidated
Balance Sheets. In the third quarter of 2015, the Company adopted ASU 2015-15 which allows entities to present deferred financing costs for line-of-credit
arrangements as an asset. As of December 31, 2015, the Company classified deferred financing costs related to the Senior Secured Asset-Based Revolving
Credit Facility as an asset, included within Other Assets on the Consolidated Balance Sheets. The Company retroactively adjusted the deferred financing
costs and long term liability presented as of December 31, 2014 to align it to the current period presentation. There are no deferred financing costs related
to the Kelway revolving credit facility. For additional information, see Note 2 (Recent Accounting Pronouncements).
(2) As of December 31, 2014, the Company reported $1.3 million of unamortized premium on the Senior Notes due 2019 net of deferred financing costs of
$4.4 million .
As of December 31, 2015 , the Company remained in compliance with the covenants under its various credit agreements. Under the credit agreement governing the
Senior Secured Term Loan Facility, there are restrictions on the ability of CDW to pay dividends, make share repurchases, redeem subordinated debt and engage in
certain other transactions. At December 31, 2015 , the amount of CDW’s restricted payment capacity under the Senior Secured Term Loan Facility was $679.7
million , however the Company is separately permitted to make restricted payments so long as the total net leverage ratio is less than 3.25 on a pro forma basis. The
total net leverage ratio was 3.0 at December 31, 2015.
Senior Secured Asset-Based Revolving Credit Facility (“Revolving Loan”)
At December 31, 2015 , the Company had no outstanding borrowings under the Revolving Loan, $2.1 million of undrawn letters of credit and $404.9 million
reserved related to the floorplan sub-facility.
74