Quarterly report pursuant to Section 13 or 15(d)

Debt

v2.3.0.15
Debt
9 Months Ended
Sep. 30, 2011
Debt [Abstract]  
Debt

5. Debt

Debt consists of the following:

 

     September 30, 2011     December 31, 2010  

Senior notes, at par

   $ 250,000     $ 175,000   

Unamortized discount on Senior notes

     (2,944 )     —     

Interest rate swap fair value

     10,489       —     
  

 

 

   

 

 

 

Senior notes, net

     257,545       175,000   

Revolving credit agreement

     —          60,000   

Mortgage notes payable

     87,645       89,500   

Capital leases and other

     6,106        6,141   
  

 

 

   

 

 

 

Total debt

     351,296       330,641   

Less current portion

     (3,203     (2,817
  

 

 

   

 

 

 

Long-term debt

   $ 348,093     $ 327,824   
  

 

 

   

 

 

 

Senior Notes

In May 2011, the Company exercised its option to redeem its $175,000 7.25% Senior Notes due April 1, 2014 ($175,000 Notes). The Company redeemed the $175,000 Notes at 103.625% and wrote off unamortized debt issuance costs, resulting in a pre-tax expense of $8,488.

In May 2011, pursuant to a shelf registration statement, 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, 2011, the unamortized debt discount was $2,944. The indenture governing the $250,000 Notes contains non-financial and financial covenants. Interest is paid semi-annually in June and December. In connection with the issuance, the Company entered into an interest rate swap as discussed below. 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, 2011, the fair value of the interest rate swap increased the principal amount of the notes by $10,489.

Revolving Credit Agreement

In January 2011, the Company replaced its $300,000 revolving credit agreement with a new $350,000 revolving credit facility, or the revolver. The revolver is unsecured and has a five-year maturity with 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. There is a commitment fee on the unused portion of the agreement that ranges from 0.25% to 0.50% depending on the total debt to EBITDA ratio, as defined. As of September 30, 2011, the Company had no borrowings outstanding under the agreement, leaving availability of $350,000.

The Company has outstanding letters of credit of $36,708 as of September 30, 2011, which are not part of the revolver. The letters of credit bore interest at an average of 1.66% on September 30, 2011.