Supercuts 2006 Annual Report Download - page 91

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
Aggregate maturities of long-term debt, including associated fair value hedge obligations of $1.3 million and capital lease obligations of
$28.0 million at June 30, 2006, are as follows:
Senior Term Notes
Private Shelf Agreement
At June 30, 2006 and 2005, the Company had $191.0 and $203.5 million, respectively, in unsecured, fixed rate, senior term notes
outstanding under a Private Shelf Agreement. The notes require quarterly payments, and final maturity dates range from July 2006 through
November 2010. The interest rates on the notes ranged from 4.03 to 8.39 percent as of June 30, 2006 and 2005.
The Private Shelf Agreement includes financial covenants including debt to earnings before interest, taxes, depreciation and amortization
(EBITDA) ratios, fixed charge coverage ratios and minimum net equity tests (as defined within the Private Shelf Agreement), as well as other
customary terms and conditions. The maturity date for the debt may be accelerated upon the occurrence of various Events of Default, including
breaches of the agreement, certain cross-default situations, certain bankruptcy related situations, and other customary events of default.
As a result of the fair value hedging activities discussed in Note 5, an adjustment of approximately $1.3 and $2.5 million was made to
increase the carrying value of the Company’s long-term fixed rate debt at June 30, 2006 and 2005, respectively.
Private Placement Senior Term Notes
In fiscal year 2005, the Company issued $200.0 million of senior unsecured debt to approximately twenty purchasers via a private
placement transaction pursuant to a Master Note Purchase Agreement. The placement was split into four tranches, with $100 million maturing
March 31, 2013 and $100.0 million maturing March 31, 2015. Of the debt maturing in 2013, $30.0 million was issued as fixed rate debt with a
rate of 4.97 percent. The remaining $70.0 million was issued as variable rate debt and is priced at 52 basis points over LIBOR. As for the $100
million maturing in 2015, $70.0 million was issued at a fixed rate of 5.20 percent, with the remaining $30.0 million issued as variable rate debt,
priced at 0.55 percent over LIBOR. All four tranches are non-amortizing and no principle payments are due until maturity. Interest payments
are due semi-annually.
The Master Note Purchase Agreement includes financial covenants including debt to EBITDA ratios, fixed charge coverage ratios and
minimum net equity tests (as defined within the Private Shelf Agreement), as well as other customary terms and conditions. The maturity date
for the debt may be accelerated upon the occurrence of various Events of Default, including breaches of the agreement, certain cross-default
situations, certain bankruptcy related situations, and other customary events of default.
90
Fiscal year
(Dollars in thousands)
2007
$
101,912
2008
70,773
2009
83,765
2010
46,467
2011
43,270
Thereafter
276,082
$
622,269