Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2013

Long-Term Debt

Schedule of Long-term debt

Long-term debt consisted of the following (in thousands):

	March 31,		December 31,
	2013		2012
Guitar Center
Senior secured asset-based revolving facility	$	—	$	—
Senior secured term loan	620,750		621,762
Obligations under capital leases, payable in monthly installments through 2014 and 2013, respectively	460		54
Senior unsecured notes	394,890		394,890
	1,016,100		1,016,706
Less current portion	6,758		5,941
Guitar Center long-term debt, net of current portion	1,009,342		1,010,765
Holdings
Senior unsecured PIK notes	564,673		564,673
Less current portion	129,784		129,784
Holdings long-term debt, net of current portion	434,889		434,889
Holdings consolidated long-term debt, net of current portion	$	1,444,231	$	1,445,654

Schedule of future maturities and expected payments of long-term debt

Future maturities and expected payments of long-term debt as of March 31, 2013 were as follows (in thousands):

	Guitar Center		Holdings		HoldingsConsolidated
Remainder of 2013 (1)	$	5,067	$	129,784	$	134,851
2014	14,582		—		14,582
2015	6,500		—		6,500
2016	6,500		—		6,500
2017	983,451		—		983,451
2018	—		434,889		434,889
	$	1,016,100	$	564,673	$	1,580,773

(1) We made a one-time principal payment on the senior PIK notes in April 2013. This payment was $129.8 million, which is the amount of previously capitalized PIK interest required to be paid to prevent the senior PIK notes from being treated as “applicable high yield discount obligations” within the meaning of Section 163(i)(1) of the Internal Revenue Code. We funded this payment with cash available from operations and amounts drawn on the asset-based revolving credit facility. This amount is included in current portion of long-term debt in Holdings’ condensed consolidated balance sheets as of March 31, 2013 and December 31, 2012.