Quarterly report pursuant to Section 13 or 15(d)

Debt

v2.4.0.6
Debt
9 Months Ended
Sep. 30, 2012
Debt Disclosure [Abstract]  
Debt
Debt
 
Debt consists of the following:
 
September 30, 2012
 
December 31, 2011
Senior notes, at par
$
250,000

 
$
250,000

Unamortized discount on Senior notes
(2,425
)
 
(2,814
)
Interest rate swap fair value
17,196

 
11,431

Senior notes, net
264,771

 
258,617

Revolving credit agreement
40,000

 

Mortgage notes payable
84,810

 
86,948

Capital leases and other
5,729

 
6,013

Total debt
395,310

 
351,578

Less current portion
(3,337
)
 
(3,234
)
 Long-term debt
$
391,973

 
$
348,344



Senior Notes

In May 2011, the Company issued non-callable $250,000 5.75% Senior Notes due June 1, 2017 ($250,000 Notes) at a discount to yield 6%.  At September 30, 2012, the unamortized debt discount was $2,425.  In connection with the issuance, the Company entered into an interest rate swap.  Gains and losses due to changes in the fair value of the interest rate swap completely offset changes in the fair value of the hedged portion of the underlying debt and are recorded as an adjustment to the $250,000 Notes.  At September 30, 2012, the fair value of the interest rate swap increased the fair value of the notes by $17,196.  At September 30, 2012, the variable interest rate of the swap was 3.92%.

Revolving Credit Agreement

The Company has a $350,000 revolving credit facility due in January 2016.  The revolver is unsecured and has  non-financial and financial covenants, including requirements of minimum fixed charge coverage ratios, maximum debt to EBITDA ratios and minimum net worth.  Borrowings under the revolver bear interest based upon LIBOR rates, the Federal funds rate, or the prime rate.  As of September 30, 2012, the Company had $40,000 in borrowings outstanding under the agreement, leaving availability of $310,000.

The Company has outstanding letters of credit of $35,631 as of September 30, 2012, which are not part of the revolver.  The letters of credit bore interest at 1.03% as of September 30, 2012.