Cash America 2015 Annual Report Download - page 111

ForeachofthefiveyearsafterDecember31,2015,requiredprincipalpaymentsunderthetermsofthe
long-term debt, including the Company’s Line of Credit, are as follows (dollars in thousands):
2016 2017 2018 2019 2020 Total
Required principal payments — — 211,558 — — $211,558
Debt No Longer Outstanding
Variable Rate Senior Unsecured Notes
When the Company entered into the Credit Agreement, it also entered into a $50.0 million term loan facility
under which it issued variable rate senior unsecured notes that were guaranteed by all of the Company’s domestic
subsidiaries (the “2018 Variable Rate Notes”). The maturity date of the 2018 VariableRateNoteswasMarch31,
2018, but in connection with the proceeds received from Enova’s repayment of amounts owed to the Company
under the Company’s outstanding note receivable from Enova in 2014, the Company prepaid the entire amount
outstanding on the 2018 Variable Rate Notes.
In conjunction with the prepayment of the 2018 Variable Rate Notes during the three months ended June 30,
2014, the Company recorded a loss on early extinguishment of debt of approximately $0.1 million, which is
included in “Loss on early extinguishment of debt” in the consolidated statements of income.
2029 Convertible Notes
On May 19, 2009, the Company completed the offering of the 2029 Convertible Notes. During 2014, the
Company notified the holders of its outstanding 2029 Convertible Notes that on May 15, 2014, it would redeem all
outstanding 2029 Convertible Notes, and as a result of this notification, all holders of outstanding 2029 Convertible
Notes elected conversion on May 15, 2014. Pursuant to the terms of the 2029 Convertible Notes, the Company
elected to pay cash for the $44.4 million of principal amount of all converted notes outstanding at that date, plus
accrued interest, and to re-issue 747,085 shares of common stock held in treasury for the amount in excess of
principal owed to noteholders as a result of the net-share settlement provisions in the Indenture that governs the
2029 Convertible Notes. In accordance with ASC 470, Debt, no gain or loss was recorded in the consolidated
statements of income for the conversion. Additionally, the Company’s consolidated shareholders’ equity was not
changed as a result of this activity.
During the three months ended March 31, 2014 and prior to the conversion of the 2029 Convertible Notes,
the Company repurchased $58.6 million principal amount of the 2029 Convertible Notes in privately-negotiated
transactions for aggregate cash consideration of $89.5 million plus accrued interest. In connection with these
purchases, the Company recorded a loss on early extinguishment of debt of approximately $1.5 million, which is
included in “Loss on early extinguishment of debt” in the consolidated statements of income, and a $30.3 million
decrease to additional paid-in capital, which is included in “Repurchases and conversion of convertible debt” in the
consolidated statements of equity.
Contractual interest expense recognized for the 2029 Convertible Notes was $1.3 million and $5.9 million
fortheyearendedDecember31,2014and2013,respectively. Additionally, interest expense related to non-cash
amortizationofthediscountrepresented$0.7millionand$3.3millionfortheyearendedDecember31,2014and
2013, respectively.
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
107