O'Reilly Auto Parts 2002 Annual Report Download - page 43

2002 Annual Report 41
NOTE 5— NOTE PAYABLE TO BANK
At December 31, 2001, the Company had available short-term unsecured bank lines of credit providing for maximum
borrowings of $5 million, all of which was outstanding at December 31, 2001. The lines of credit, which expired in 2002,
bore interest at LIBOR plus 0.50% and were fully repaid in 2002. Additionally, at December 31, 2001, the Company had
available a short-term line of credit in the amount of $25 million, none of which was outstanding at December 31, 2001.
The line of credit bore interest at LIBOR plus 0.75%. Neither line of credit was renewed during 2002.
NOTE 6— LONG-TERM DEBT
On July 29, 2002, the Company completed an unsecured, three-year syndicated credit facility (the “Credit Facility”) in the
amount of $150 million led by Wells Fargo Bank as the Administrative Agent replacing a five-year syndicated credit facility.
The Credit Facility is guaranteed by all of our subsidiaries and may be increased to a total of $200 million, subject to
availability of such additional credit from either existing banks within the Credit Facility or other banks. The Credit Facility
bears interest at LIBOR plus .875% (2.26% at December 31, 2002) and expires in July 2005. At December 31, 2002,
$90,000,000 of the Credit Facility was outstanding. At December 31, 2001, the Company had available an unsecured
credit facility providing for maximum borrowings of $140 million. The facility was comprised of a revolving credit
facility of $125 million, and a term loan of $15 million. At December 31, 2001, $61,350,000 of the revolving credit
facility and $15 million of the term loan was outstanding. The credit facility, which bore interest at LIBOR plus 0.50%,
expired in January 2003. All borrowings outstanding under the old credit facility at December 31, 2001, were
fully repaid in 2002.
On May 16, 2001, the Company completed a $100 million private placement of two series of unsecured senior
notes (“Senior Notes”). The Series 2001-A Senior Notes were issued for $75 million, are due May 16, 2006, and bear
interest at 7.72% per year. The Series 2001-B Senior Notes were issued for $25 million, are due May 16, 2008, and
bear interest at 7.92% per year. The private placement agreement allows for a total of $200 million of Senior Notes
issuable in series. Proceeds from the transaction were used to reduce outstanding borrowings under the Company’s
former revolving credit facility.
During 2002 and 2001, the Company leased certain computer equipment under capitalized leases. The lease
agreements have three-year terms expiring from 2003 to 2005. At December 31, 2002, the monthly installments under
these agreements were approximately $53,000. The present value of the future minimum lease payments under these
agreements totaled $549,000 and $427,000 at December 31, 2002, and 2001, respectively, which has been classi-
fied as long-term debt in the accompanying consolidated financial statements. During 2002, 2001 and 2000, the
Company purchased $812,000, $467,000 and $800,000, respectively, of assets under capitalized leases.
Additionally, the Company has various unsecured notes payable to individuals and banks, amounting to $172,000
and $251,000, at December 31, 2002, and 2001, respectively. The average interest rate on these notes is 5.25% with
monthly installments approximate $7,000 including interest.
Indirect borrowings under letters of credit provided by a $20,000,000 sublimit of the Credit Facility totaled
$6,028,000 and $210,650 at December 31, 2002, and 2001, respectively. These letters of credit reduced availability
of borrowings at December 31, 2002, and 2001.
Principal maturities of long-term debt for each of the next five years ending December 31, are as follows:
(amounts in thous ands )
2003 $ 682
2004 332
2005 90,102
2006 75,015
2007 17
Thereafter 25,004
$ 191,152
Cash paid by the Company for interest during the years ended December 31, 2002, 2001 and 2000, amounted
to $9,248,000, $9,092,000 and $8,240,000, respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)