Neiman Marcus 2013 Annual Report Download - page 121
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Table of Contents
Interest expense. The significant components of interest expense are as follows:
Asset-Based Revolving Credit Facility
$ 311
$ 75
$ —
$ —
Senior Secured Term Loan Facility
102,818
3,687
—
—
Cash Pay Notes
57,556
2,773
—
—
PIK Toggle Notes
39,344
1,896
—
—
2028 Debentures
6,680
2,226
9,004
8,906
Former Asset-Based Revolving Credit Facility
—
477
1,453
1,052
Former Senior Secured Term Loan Facility
—
22,521
108,489
98,989
Senior Subordinated Notes
—
—
19,031
51,873
Amortization of debt issue costs
17,117
2,466
8,404
8,457
Other, net
1,661
1,334
7,214
7,040
Capitalized interest
(630)
(140)
(237)
(1,080)
$ 224,857
$ 37,315
$ 153,358
$ 175,237
Loss on debt extinguishment
7,882
—
15,597
—
Interest expense, net
$ 232,739
$ 37,315
$ 168,955
$ 175,237
We recorded interest expense of $8.4 million during the thirteen weeks ended November 2, 2013 related to debt incurred as a result of the
Acquisition.
At August 2, 2014, we had outstanding floating rate debt obligations of $2,927.9 million. In August 2011, we entered into interest rate cap
agreements (at a cost of $5.8 million) for an aggregate notional amount of $1,000.0 million to hedge the variability of our cash flows related to a portion of
our floating rate indebtedness. The interest rate cap agreements cap LIBOR at 2.50% from December 2012 through December 2014 with respect to the
$1,000.0 million notional amount of such agreements. In the event LIBOR is less than 2.50%, we will pay interest at the lower LIBOR rate. In the event
LIBOR is higher than 2.50%, we will pay interest at the capped rate of 2.50%.
In April 2014, we entered into additional interest rate cap agreements (at a cost of $2.0 million) for an aggregate notional amount of $1,400.0
million to hedge the variability of our cash flows related to a portion of our floating rate indebtedness once the current interest rate cap agreements expire in
December 2014. The interest rate cap agreements cap LIBOR at 3.00% from December 2014 through December 2016 with respect to the $1,400.0 million
notional amount of such agreements. In the event LIBOR is less than 3.00%, we will pay interest at the lower LIBOR rate. In the event LIBOR is higher than
3.00%, we will pay interest at the capped rate of 3.00%. On August 2, 2014, the fair value of our interest rate caps was $1.1 million.
Gains and losses realized due to the expiration of applicable portions of the interest rate caps are reclassified to interest expense at the time our
quarterly interest payments are made. A summary of the recorded amounts related to our interest rate caps reflected in our Consolidated Statements of
Operations is as follows:
Realized hedging losses — included in interest expense, net
$ —
$ 369
$ 3,475
$ 3,318
F-25