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ORBITZ WORLDWIDE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
67
certain first lien leverage ratios) of the prior year’s excess cash flow, as defined in the Amended Credit Agreement, (b) in an
amount of 100% of net cash proceeds from asset sales subject to certain reinvestment rights, and (c) in an amount of 100% of
net cash proceeds of any issuance of debt other than debt permitted to be incurred under the Amended Credit Agreement.
Based on our excess cash flow for the year ended December 31, 2014, we are required to make a $25.9 million
prepayment in the first quarter of 2015. Prepayments from excess cash flow are applied, in order of maturity, to the scheduled
quarterly Term Loan payments. As a result, we will not be required to make any scheduled principal payments on the Term
Loan until 2020.
The changes in term loans during the years ended December 31, 2014 and 2013 were as follows:
Amount
(in thousands)
Balance at January 1, 2013 (current and non-current) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 440,030
Payment from excess cash flow under the 2007 Credit Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,708)
Repayment of the 2007 Credit Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (415,322)
Balance per 2007 Credit Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ —
Proceeds from issuance of the March 23, 2013 term loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
Repayment of the March 23, 2013 term loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (450,000)
Proceeds from the May 24, 2013 Credit Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
Scheduled principal payments of the term loan under the Credit Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . (6,750)
Balance at December 31, 2013 (current and non-current) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 443,250
Scheduled principal payments of the term loan under the Credit Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . (3,375)
Repayment of term loan under the Credit Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (439,875)
Balance per Credit Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ —
Proceeds from issuance of Term Loan pursuant to the Second Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 450,000
Scheduled principal payments of Term Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,250)
Balance at December 31, 2014 (current and non-current) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 447,750
At December 31, 2014, $200.0 million of the Term Loan had a fixed interest rate as a result of interest rate swaps and
$247.8 million had a variable rate based on LIBOR, resulting in a blended interest rate of 4.94%, excluding the impact of the
amortization of debt issuance costs (see Note 12 - Derivative Financial Instruments).
The table below shows the aggregate maturities of the Term Loans over the remaining term of the Amended Credit
Agreement, excluding any mandatory prepayments that could be required under the Term Loan beyond the first quarter of
2015. The potential amount of prepayment from excess cash flow that will be required beyond the first quarter of 2015 is not
reasonably estimable as of December 31, 2014.
Year (in thousands)
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,871
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421,879
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 447,750
Revolver
The Revolver provides for borrowings and letters of credit up to $80.0 million, through which we are allowed to issue up