Comfort Inn 2007 Annual Report Download - page 67

CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(continued)
10. Deferred Revenue
Deferred revenue consists of the following:
December 31,
2007
2006
(In thousands)
Loyalty programs.......................................................................................................................... $ 43,488 $ 39,622
Initial, relicensing and franchise fees............................................................................................ 4,151 3,241
Brand solution fees ....................................................................................................................... 1,021 4,304
Total.............................................................................................................................................. $ 48,660 $ 47,167
11. Long-Term Debt
Debt consists of the following at:
December 31,
2007
2006
(In thousands)
$350 million senior unsecured revolving credit facility with an effective rate of 5.23% and
5.72% at December 31, 2007 and 2006, respectively............................................................. $ 172,400 $ 72,200
$100 million senior notes with an effective rate of 7.22% at December 31, 2007 and 2006,
respectively............................................................................................................................. 99,978
99,914
Other notes with an average effective rate of 5.78% at December 31, 2006............................... — 422
Total debt........................................................................................................................... $ 272,378 $ 172,536
Less current portion..................................................................................................................... — (146)
Total long-term debt .......................................................................................................... $ 272,378 $ 172,390
Scheduled principal maturities of debt as of December 31, 2007 were as follows:
Year
(In thousands)
2008.......................................................................................................................................... $ —
2009.......................................................................................................................................... —
2010.......................................................................................................................................... —
2011.......................................................................................................................................... 272,378
2012.......................................................................................................................................... —
Total ......................................................................................................................................... $ 272,378
On June 16, 2006, the Company entered into a $350 million senior unsecured revolving credit agreement (the
“Revolver”), with a syndicate of lenders. The proceeds from the Revolver were used to refinance and terminate a previous
revolving facility. The Revolver allows the Company to borrow, repay and reborrow revolving loans up to $350 million
(which includes swingline loans for up to $20 million and standby letters of credit up to $30 million) until the scheduled
maturity date of June 16, 2011. The Company has the ability to request an increase in available borrowings under the
Revolver by an additional amount of up to $150 million by obtaining the agreement of the existing lenders to increase
their lending commitments or by adding additional lenders. The rate of interest generally applicable for revolving loans
under the Revolver are, at the Company’ s option, equal to either (i) the greater of the prime rate or the federal funds
effective rate plus 50 basis points, or (ii) an adjusted LIBOR rate plus a margin between 22 and 70 basis points based on
the Company’ s credit rating. The Revolver requires the Company to pay a quarterly facility fee, based upon the credit
rating of the Company, at a rate between 8 and 17 1/2 basis points, on the full amount of the commitment (regardless of
usage). The Revolver also requires the payment of a quarterly usage fee, based upon the credit rating of the Company, at a
rate between 10 and 12 1/2 basis points, on the amount outstanding under the commitment, at all times when the amount
borrowed under the Revolver exceeds 50% of the total commitment. The Revolver includes customary financial and other
covenants that require the maintenance of certain ratios including maximum leverage and interest coverage. At
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