FairPoint Communications 2009 Annual Report Download - page 76

Table of Contents
Cash and cash equivalents at December 31, 2009 totaled $109.4 million compared to $70.3 million at December 31, 2008, excluding restricted cash
of $4.0 million and $68.5 million, respectively.
Net cash provided by operating activities was $150.3 million, $57.5 million and $264.5 million for the years ended December 31, 2009, 2008 and
2007, respectively.
Net cash used in investing activities was $177.4 million, $283.3 million and $137.2 million for the years ended December 31, 2009, 2008 and
2007, respectively. These cash flows primarily reflect capital expenditures of $178.8 million, $297.0 million and $149.5 million for the years ended
December 31, 2009, 2008 and 2007, respectively. Net cash used in investing activities also includes acquired cash of $11.4 million for the year ended
December 31, 2008.
Net cash provided by (used in) financing activities was $66.1 million, $296.2 million and $(127.3) million for the years ended December 31, 2009,
2008 and 2007, respectively. For the year ended December 31, 2009, net proceeds from FairPoint's issuance of long term debt were $50.0 million,
repayment of long term debt was $20.8 million and dividends paid to stockholders was $23.0 million. Additionally, $65.1 million was released from
restricted cash during the year ended December 31, 2009. For the year ended December 31, 2008, net proceeds from FairPoint's issuance of long-term
debt were $1,930.0 million, repayment of long-term debt was $687.5 million and dividends to stockholders was $1,220.0 million, of which
$1,160.0 million was paid to Verizon by Spinco in connection with the Merger.
We expect our capital expenditures will be approximately $190 million to $210 million in 2010. However, this expectation does not take into
account the effect that the filing of the Chapter 11 Cases will have on the capital expenditure requirements imposed by the PUCs in Maine, New
Hampshire and Vermont as a condition to the to the approval of the Merger and whether such requirements will be enforceable against us in the future.
We anticipate that we will fund these expenditures through cash flows from operations, cash on hand and funds available under the DIP Credit
Agreement and, after the Effective Date, the Exit Facility.
We expect our contributions to our Company sponsored employee pension plans and post-retirement medical plans will be approximately
$1.0 million in 2010.
For a further description of the background to the filing of the Chapter 11 Cases, see "Part 1—Item 1. Business—Chapter 11 Cases—Background
to the Filing of the Chapter 11 Cases."
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Our $2,030 million Pre-petition Credit Facility consists of a non-amortizing revolving facility in an aggregate principal amount of $200 million, a
senior secured term loan A facility in an aggregate principal amount of $500 million (the "Term Loan A Facility"), a senior secured term loan B facility
in the aggregate principal amount of $1,130 million (the "Term Loan B Facility" and, together with the Term Loan A Facility, the "Term Loan") and a
delayed draw term loan facility in an aggregate principal amount of $200 million (the "Delayed Draw Term Loan"). Spinco drew $1,160 million under
the Term Loan immediately prior to being spun off by Verizon, and then FairPoint drew $470 million under the Term Loan and $5.5 million under the
Delayed Draw Term Loan concurrently with the closing of the Merger.
Subsequent to the Merger, we borrowed the remaining $194.5 million available under the Delayed Draw Term Loan. These funds were used for
certain capital expenditures and other expenses associated with the Merger.
On October 5, 2008, the administrative agent under our Pre-petition Credit Facility (the "administrative agent") filed for bankruptcy. The
administrative agent accounted for thirty percent of the loan commitments under the Revolving Credit Facility. On January 21, 2009, we entered into an
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