Sunbeam 2005 Annual Report Download - page 58

Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2005
5. Debt
Debt is comprised of the following as of December 31, 2005 and December 31, 2004 (in millions):
December 31,
2005 2004
Senior Credit Facility Term Loan and Add-ons .................................. $1,263.1 $302.9
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3
⁄ 4 % Senior Subordinated Notes .............................................. 179.9 179.9
Senior Credit Facility Revolver ................................................ — —
Non-U.S. borrowings ........................................................ 61.9 1.5
Other (primarily capital leases) ................................................ 19.9 —
Non-debt balances arising from interest rate swap activity ......................... 16.6 3.2
Total debt ............................................................. 1,541.4 487.5
Less: current portion ........................................................ (86.3) (17.0)
Total long-term debt .................................................... $1,455.1 $470.5
On February 24, 2006 the Company executed an amendment to its Senior credit facility which
modified certain covenants and permitted the Company to increase its repurchases of common stock. In
connection with this amendment, the Company agreed to repay $26 million of principal outstanding under
its Term Loan facility, which was repaid in March 2006 and accordingly classified as “Short-term debt and
current portion of long-term debt” on the Consolidated Balance Sheets as of December 31, 2005.
Additionally, in accordance with the Senior Credit Facility agreement, the Company expects to repay
approximately $43 million during the second quarter of 2006 based on the excess cash flow achieved during
the year ended December 31, 2005. Accordingly, such amount has been classified as “Short-term debt and
current portion of long-term debt” on the Consolidated Balance Sheet as of December 31, 2005.
2005 Activity
Senior Credit Facility
As discussed in Note 3, the AHI Acquisition was partially funded through drawings on the $1.05 billion
Senior Credit Facility, consisting of the $850 million Term Loan (which matures in 2012) and a revolving
credit facility with an aggregate commitment of $200 million (which matures in 2010). This facility replaced
the Second Amended Credit Agreement. As part of the replacement of the Second Amended Credit
Agreement, the Company recorded a loss on early extinguishment of debt in its Consolidated Statements of
Income in connection with the write-off of approximately $6.0 million of unamortized deferred debt
issuance costs during the year ended December 31, 2005.
The Senior Credit Facility and the Foreign Senior Debt (defined below) contain certain restrictions on
the conduct of the Company’s business, including, among other restrictions, generally on: incurring debt;
disposing of certain assets; making investments; exceeding certain agreed upon capital expenditures;
creating or suffering liens; completing certain mergers; consolidations and sales of assets and with
permitted exceptions; acquisitions; declaring dividends; redeeming or prepaying other debt; and certain
transactions with affiliates. The Senior Credit Facility and the Foreign Senior Debt also include financial
covenants that require the Company to maintain certain leverage and fixed charge ratios and a minimum
net worth.
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