FairPoint Communications 2013 Annual Report Download - page 78

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76
(8) Long-term Debt
Long-term debt for the Company at December 31, 2013 and 2012 is shown below (in thousands):
December 31, 2013 December 31, 2012
New Term Loan, due 2019 (weighted average rate of 7.50%) $ 635,200 $ —
Discount on New Term Loan (a) (17,078) —
Notes, 8.75%, due 2019 300,000 —
Old Term Loan, due 2016 (weighted average rate of 6.50%) — 957,000
Total long-term debt $ 918,122 $ 957,000
Less: current portion (6,400) (10,000)
Total long-term debt, net of current portion $ 911,722 $ 947,000
(a) The $17.1 million discount on the New Term Loan (as defined below) is being amortized using the effective interest
method over the term of the New Term Loan (as defined below) due 2019.
As of December 31, 2013, the Company had $59.1 million, net of $15.9 million outstanding letters of credit, available for
additional borrowing under the New Revolving Facility (as defined below).
The approximate aggregate maturities of long-term debt, excluding the debt discount on the New Term Loan (as defined
below), for each of the five years subsequent to December 31, 2013 are as follows (in thousands):
Year ending December 31, Balance Due
2014 $ 6,400
2015 6,400
2016 6,400
2017 6,400
2018 6,400
Thereafter 903,200
Total long-term debt, including current portion $ 935,200
Refinancing
On February 14, 2013 (the "Refinancing Closing Date"), FairPoint Communications refinanced the Old Credit Agreement
Loans (as defined herein) (the "Refinancing"). In connection with the Refinancing, FairPoint Communications (i) issued $300.0
million aggregate principal amount of its 8.75% senior secured notes due 2019 (the "Notes") in a private offering exempt from
registration under the Securities Act pursuant to an indenture (the "Indenture") that FairPoint Communications entered into on the
Refinancing Closing Date with certain of its subsidiaries that guarantee the indebtedness under the New Credit Agreement (as
defined herein) (the "Subsidiary Guarantors") and U.S. Bank National Association, as trustee and collateral agent, and (ii) entered
into a new credit agreement (the "New Credit Agreement"), dated as of the Refinancing Closing Date, with the lenders party thereto
from time to time and Morgan Stanley Senior Funding, Inc., as administrative agent and letter of credit issuer. The New Credit
Agreement provides for a $75.0 million revolving credit facility (the ''New Revolving Facility''), which has a sub-facility providing
for the issuance of up to $40.0 million in letters of credit, and a $640.0 million term loan facility (the ''New Term Loan'' and,
together with the New Revolving Facility, the ''New Credit Agreement Loans"). On the Refinancing Closing Date, FairPoint
Communications used the proceeds of the Notes offering, together with $640.0 million of borrowings under the New Term Loan
and cash on hand to (i) repay principal of $946.5 million outstanding on the Old Term Loan (as defined herein), plus approximately
$7.7 million of accrued interest and (ii) pay approximately $32.6 million of fees, expenses and other costs related to the Refinancing.
The New Credit Agreement. The principal amount of the New Term Loan and commitments under the New Revolving
Facility may be increased by an aggregate amount of up to $200.0 million, subject to certain terms and conditions specified in the
New Credit Agreement. The New Term Loan will mature on February 14, 2019 and the New Revolving Facility will mature on
February 14, 2018, subject in each case to extensions pursuant to the terms of the New Credit Agreement.