Cash America 2011 Annual Report Download - page 138

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
107
As of December 31, 2011 and 2010, the carrying amount of the 2009 Convertible Notes was $107.1 million
and $104.2 million, respectively, and the unamortized discount was $7.9 million and $10.8 million, respectively. The
discount is being amortized to interest expense over a period of five years, through the first redemption date of May
19, 2014. The total interest expense recognized was $8.9 million, $8.7 million and $5.3 million for the years ended
December 31, 2011, 2010 and 2009, respectively, of which $2.9 million, $2.7 million and $1.6 million represented the
non-cash amortization of the discount, and $6.0 million, $6.0 million and $3.7 million represented the contractual
interest expense for the years ended December 31, 2011, 2010 and 2009, respectively. The 2009 Convertible Notes
have an effective interest rate of 8.46% at both December 31, 2011 and 2010, respectively. As of December 31, 2011,
the if-converted value of the 2009 Convertible Notes exceeds the principal amount by approximately $98.9 million.
In connection with the issuance of the 2009 Convertible Notes, the Company incurred approximately $3.9
million for issuance costs, which primarily consisted of underwriting fees, legal and other professional expenses. The
unamortized balance of these costs at December 31, 2011 is included in “Other assets” in the Company’s consolidated
balance sheets. These costs are being amortized to interest expense over five years.
As of both December 31, 2011 and 2010, the carrying amount of the equity component recorded as additional
paid-in capital was $9.4 million, net of deferred taxes and equity issuance costs.
Other
On March 30, 2011, in conjunction with the establishment of the Original Credit Agreement, the Company
entered into a separate credit agreement for the issuance of $20.0 million in letters of credit (the “Letter of Credit
Facility”). The Company had standby letters of credit of $19.1 million issued under the Letter of Credit Facility at
December 31, 2011. Previously, these letters of credit were provided under the USD Line of Credit by reducing the
amount available to the Company.
See Note 16 for a discussion of the Company’s interest rate cap agreements.
Each of the Company’s credit agreements and senior unsecured notes require the Company to maintain certain
financial ratios. As of December 31, 2011, the Company was in compliance with all covenants or other requirements
set forth in its debt agreements.
As of December 31, 2011, required principal payments under the terms of the long-term debt, including the
Company’s line of credit, for each of the five years after December 31, 2011 are as follows (dollars in thousands):
Year Amount
2012 $ 34,273
2013 23,445
2014 22,606
2015 319,273
2016 14,273
Thereafter 123,421
$ 537,291