FairPoint Communications 2006 Annual Report Download - page 81
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million in 2006. Additional proceeds of approximately $2.6 million are held in escrow and the Company will not record the gain on this portion of the
transaction until the proceeds are received.
Long-term debt at December 31, 2006 and 2005 is shown below (in thousands):
2005 Senior secured notes, variable rates ranging from 7.125% to 9.25% (weighted
average rate of 7.2%) at December 31, 2006, due 2011 to 2012 $603,500 $602,275
2003 Senior notes, 11.875%, due 2010 2,050 2,050
Senior notes to RTFC:
Fixed rate, ranging from 8.2% to 9.20%, due 2009 to 2014 2,436 3,100
Total outstanding long-term debt 607,986 607,425
Less current portion (714) (677)
Total long-term debt, net of current portion $607,272 $606,748
The approximate aggregate maturities of long-term debt for each of the five years subsequent to December 31, 2006 are as follows (in thousands):
Fiscal year:
2007 $714
2008 753
2009 161
2010 2,210
2011 15,171
Thereafter 588,977
$607,986
(a) 2005 Senior Secured Notes
On February 8, 2005, the Company entered into a credit facility consisting of a revolving facility in an aggregate principal amount of up to
$100.0 million and a term facility in an aggregate principal amount of $588.5 million. On the closing date of the Company’s initial public offering, the
Company drew $566.0 million against the term facility. In addition, on May 2, 2005, the Company drew $22.5 million of borrowings under the delayed
draw term facility of the credit facility. The Company incurred approximately $10.4 million of debt issuance costs associated with entering into the credit
facility and subsequent amendments thereto.
The term facility matures in February 2012 and the revolving facility matures in February 2011. Borrowings bear interest, at the Company’s option, for
the revolving facility and for the term facility at either (a) the Eurodollar rate (as defined in the credit facility) plus an applicable margin or (b) the Base rate (as
defined in the credit facility) plus an applicable margin. The Eurodollar rate applicable margin and the Base rate applicable margin for loans under the credit
facility are 2.0% and 1.0%, respectively. Effective on September 30, 2005, the Company amended its credit facility to reduce the effective interest rate margins
on the $588.5 million term facility by 0.25% to 1.75% on Eurodollar loans and to 0.75% for Base rate loans. Interest with respect to Base rate loans is
payable quarterly in arrears and interest with respect to Eurodollar loans is payable at the end of the applicable interest period and every three months in the
case of interest periods in excess of three months.
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