Lifetime Fitness 2009 Annual Report Download - page 62

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
57
4. Long-Term Debt
Long-term debt consists of the following:
December 31,
2009 2008
Revolving credit facility, interest only due monthly at interest rates ranging from
LIBOR plus 0.625% to 1.50% or base plus 0.0%, facility expires May 2012,
collateralized by certain personal property ........................................................... $358,100 $414,600
Interest rate swap on notional amount of $125,000 at a fixed annual rate of
4.715%, expiring October 2010............................................................................ 4,196 7,541
Mortgage notes payable to insurance company, monthly interest and principal
payments totaling $1,273 including interest at 8.25% to July 2011,
collateralized by certain related real estate and buildings .................................... 105,531 111,812
Commercial mortgage-backed notes payable with monthly interest and principal
payments totaling $632 including interest at 6.03% to February 2017,
collateralized by certain related real estate and buildings .................................... 101,418 102,752
Mortgage notes payable to banks with monthly interest and principal payments
totaling $257 including interest ranging from 6.25% to 7.10%, expiring
between January 2012 and May 2024, collateralized by certain related real
estate and buildings .............................................................................................. 27,197 9,841
Variable Rate Demand Notes, interest due monthly at a variable rate resetting
weekly, principal due annually according to an agreement with a Letter of
Credit provider that secures the notes, notes mature in July 2033........................ 33,831 34,235
Promissory note payable to lender, monthly interest and principal payments
totaling $80 including interest at 5.78% to January 2015, collateralized by a
certain interest in secured property ....................................................................... 7,503 8,013
Other debt including promissory note payable and special assessments payable ........ 3,861 4,426
Total debt (excluding obligations under capital leases) ............................................... 641,637 693,220
Obligations under capital leases (see below) ............................................................... 18,709 19,684
Total debt .....................................................................................................................660,346 712,904
Less current maturities ................................................................................................ 16,716 10,335
Total long-term debt .................................................................................................... $ 643,630 $702,569
Revolving Credit Facility
On April 15, 2005, we entered into a Credit Agreement, with U.S. Bank National Association, as administrative agent and
lead arranger, J.P. Morgan Securities, Inc., as syndication agent, and the banks party thereto from time to time (the “U.S.
Bank Facility”). On May 31, 2007, we entered into a Second Amended and Restated Credit Agreement effective May 31,
2007 to amend and restate our U.S. Bank Facility. The material changes to the U.S. Bank Facility at that time were to
increase the amount of the facility from $300.0 million to $400.0 million, establish a $25.0 million accordion feature, and
extend the term of the facility by a little over one year to May 31, 2012. Interest on the amounts borrowed under the U.S.
Bank Facility continues to be based on (i) a base rate, which is the greater of (a) U.S. Bank’s prime rate and (b) the federal
funds rate plus 50 basis points, or (ii) an adjusted Eurodollar rate, plus, in either case (i) or (ii), the applicable margin within
a range based on our consolidated leverage ratio. In connection with the amendment and restatement of the U.S. Bank
Facility, the applicable margin ranges were reduced to zero at all times (from zero to 25 basis points) for base rate
borrowings and decreased to 62.5 to 150 basis points (from 75 to 175 basis points) for Eurodollar borrowings.
On September 17, 2007, we fixed $125.0 million of our revolver with an interest rate swap contract.