FairPoint Communications 2002 Annual Report Download - page 501

2001
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RTFC notes - variable rate $ 513,032
RTFC notes - variable rate 146,308
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Total long-term debt 659,340
Less current portion (659,340)
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$ -
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The mortgage notes outstanding at December 31, 2001, are to be repaid
in equal quarterly installments covering principal and interest
beginning two to five years after date of issue and expiring by 2002.
The interest rate on the debt is a variable rate established
periodically by the RTFC. The rate at December 31, 2001, was 5.3%.
Substantially all assets of the Partnership are pledged as security
under the mortgage and security agreement with the RTFC.
The mortgage and security and loan agreements underlying the RTFC
notes contain certain restrictions on Partnership distributions,
return of partner capital contributions, and investment in, or loans
to others. In 2000, the Partnership received a waiver from the lender
to make partnership distributions. Also included in the loan agreement
is a provision which requires the partners to infuse, on an ongoing
basis, the greater of sufficient amounts of equity to accommodate any
cash shortfalls or certain specified amounts. Further, the Partnership
is required, under the loan agreement, to achieve a debt service
coverage ratio of not less than 1.25.
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ILLINOIS VALLEY CELLULAR RSA 2-I PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 6. LONG-TERM DEBT (Continued)
Of the funds available under the RTFC approved loans, including
amendments, all amounts were advanced as of December 31, 2002.
Cash paid for interest net of amounts capitalized for 2002, 2001, and
2000, totaled $25,021, $92,928, and $158,095, respectively.
The fair value of the partnership debt is estimated based on the
discounted value of future cash flows expected to be paid using
current rates of borrowing for similar types of debt. The fair value
of debt approximates carrying value at December 31, 2002 and 2001.
NOTE 7. RELATED PARTY TRANSACTIONS
MC, as operating and network partner, performed certain technical,
professional, and administrative services on behalf of the
Partnership. In accordance with the Partnership Agreement, MC is
reimbursed by the Partnership for the Partnership's share of these
costs. MC allocates these costs to the various cellular systems to
which they provide service based on each entity's customer access
lines. Reimbursed expenses in 2002, 2001, and 2000 were $2,224,397,
$1,944,325, and $1,725,222, respectively. These reimbursed expenses
are classified and presented under the Operating Expenses category to
which each relates.
In addition, $276,062, $252,406, and $223,877 were paid to an