Sunbeam 2003 Annual Report Download - page 52

Jarden Corporation
Notes to Consolidated Financial Statements (continued)
Prior to the Amended Credit Agreement, the Company’s former credit agreement (“Old Credit
Agreement”) was due to mature on April 24, 2007. The revolving credit facility and the term loan facility
bore interest at a rate equal to (i) the Eurodollar Rate pursuant to an agreed formula or (ii) a Base Rate
equal to the higher of (a) the Bank of America prime rate and (b) the federal funds rate plus .50%, plus,
in each case, an applicable margin ranging from 2.00% to 2.75% for Eurodollar Rate loans and from
.75% to 1.5% for Base Rate loans. The Old Credit Agreement contained restrictions on the conduct of
the Company’s business similar to the restrictions under the Amended Credit Agreement. The Old
Credit Agreement was replaced by the Amended Credit Agreement.
Until it was replaced by the Old Credit Agreement on April 24, 2002, our senior credit facility, as
amended, provided for a revolving credit facility of $40 million and a term loan which amortized
periodically as required by the terms of the agreement. Interest on borrowings under the term loan and
the revolving credit facilities were based upon fixed increments over adjusted LIBOR or the agent bank’s
alternate borrowing rate as defined in the agreement. The agreement also required the payment of
commitment fees on the unused balance. During the first quarter 2002, approximately $38 million of tax
refunds the Company received, were used to repay a portion of the outstanding amounts under this
credit facility.
In May 1999, we entered into a three-year interest rate swap with an initial notional value of $90
million. The swap effectively fixed the interest rate on approximately 60% of our term debt at a
maximum rate of 7.98% for the three-year period. The swap matured and was terminated in
March 2002.
Debt Disclosures
As of December 31, 2003, the Notes traded at a premium, resulting in an estimated fair value, based
upon quoted market prices, of approximately $198.5 million.
As of December 31, 2003, the Company had $199.6 million outstanding under the term loan
facilities and no outstanding amounts under the revolving credit facility of the Amended Credit
Agreement. The Company’s weighted average interest rate on this outstanding amount at December 31,
2003 was 4.0%. Net availability under the revolving credit agreement was approximately $64.9 million as
of December 31, 2003, after deducting $5.1 million of issued letters of credit. The Company is required
to pay commitment fees on the unused balance of the revolving credit facility.
As of December 31, 2002, the Company had $47.5 million outstanding under the term loan facility
and zero outstanding under the $50 million revolving credit facility of the Old Credit Agreement. The
Company’s weighted average interest rate on this outstanding amount at December 31, 2002 was 4.3%.
Net availability under the revolving credit agreement was approximately $45.8 million as of December
31, 2002, after deducting $4.2 million of issued letters of credit.
As of December 31, 2003, maturities on the Company’s Long-term Debt, net of unamortized debt
discounts/premiums, over the next five years, were $17.5 million in 2004, $15.1 million in 2005, $18.1
million in 2006, $81.8 million in 2007, $72.4 million in 2008 and $182.4 million thereafter.
As of December 31, 2003 and 2002, the Company’s Long-term Debt included approximately $2.6
million and $6.6 million, respectively, of non-debt balances arising from the interest rate swap
transactions described in Note 16. The 2003 non-debt balance is in the “thereafter” balance above.
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