Orbitz 2010 Annual Report Download - page 89

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or prior to June 2, 2010. Any portion of the Term Loan purchased by us will be retired pursuant to
the terms of the amendment.
On June 17, 2009, we completed the purchase of $10 million in principal amount of the Term Loan,
as required by the Amendment. The principal amount of the Term Loan purchased (net of associated
unamortized debt issuance costs of almost nil) exceeded the amount we paid to purchase the debt
(inclusive of miscellaneous fees incurred) by $2 million. Accordingly, we recorded a $2 million gain
on extinguishment of a portion of the Term Loan, which is included in gain on extinguishment of
debt in our consolidated statements of operations for the year ended December 31, 2009.
At December 31, 2009, we had interest rate swaps outstanding that effectively converted $200 million of
the Term Loan to a fixed interest rate (see Note 14 — Derivative Financial Instruments). At December 31,
2009, $100 million of the Term Loan effectively bears interest at a fixed rate of 6.39% and an additional
$100 million of the Term Loan effectively bears interest at a fixed rate of 5.98%, through these interest rate
swaps. Of the remaining $377 million of the Term Loan, $327 million bears interest at a variable rate of
LIBOR plus 300 basis points, or 3.23%, as of December 31, 2009, which is based on the one-month LIBOR,
and $50 million bears interest at a variable rate of LIBOR plus 300 basis points, or 3.26%, as of December 31,
2009, which is based on the three-month LIBOR.
At December 31, 2008, we had interest rate swaps outstanding that effectively converted $400 million of
the Term Loan to a fixed interest rate. At December 31, 2008, $200 million of the Term Loan effectively had
a fixed interest rate of 8.21%, $100 million of the Term Loan effectively had a fixed interest rate of 6.39%
and an additional $100 million of the Term Loan effectively had a fixed interest rate of 5.98%, through these
interest rate swaps. Of the remaining $193 million of the Term Loan, $100 million had a variable interest rate
of LIBOR plus 300 basis points, or 4.46%, as of December 31, 2008, which was based on the three-month
LIBOR, and $93 million had a variable interest rate of LIBOR plus 300 basis points, or 3.46%, as of
December 31, 2008, which was based on the one-month LIBOR.
Revolver
The Revolver provides for borrowings and letters of credit of up to $85 million ($50 million in
U.S. dollars and the equivalent of $35 million denominated in Euros and Pounds Sterling) and bears interest at
a variable rate, at our option, of LIBOR plus a margin of 225 basis points or an Alternative Base Rate plus a
margin of 125 basis points. The margin is subject to change based on our total leverage ratio, as defined in the
Credit Agreement, with a maximum margin of 250 basis points on LIBOR-based loans and 150 basis points
on Alternative Base Rate loans. We also incur a commitment fee of 50 basis points on any unused amounts on
the Revolver. The Revolver matures in July 2013.
Lehman Commercial Paper Inc., which filed for bankruptcy protection under Chapter 11 of the United
States Bankruptcy Code on October 5, 2008, held a $12.5 million commitment, or 14.7% percent, of the
$85 million available under the Revolver. As a result, total availability under the Revolver has effectively been
reduced from $85 million to $72.5 million.
At December 31, 2009 and December 31, 2008, $42 million and $21 million of borrowings were
outstanding under the Revolver, respectively, all of which were denominated in U.S. dollars. In addition, at
December 31, 2009, there was the equivalent of $5 million of outstanding letters of credit issued under the
Revolver, which were denominated in Pounds Sterling. There were no outstanding letters of credit issued
under the Revolver at December 31, 2008. The amount of letters of credit issued under the Revolver reduces
the amount available to us for borrowings. We had $26 million and $52 million of availability under the
Revolver at December 31, 2009 and December 31, 2008, respectively.
At December 31, 2009, the $42 million of borrowings outstanding under the Revolver bear interest at a
variable rate equal to the U.S.-dollar LIBOR rate plus 225 basis points, or 2.48%. At December 31, 2008,
89
ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)