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Note 11 - Long-Term Debt
12 Months Ended
Dec. 31, 2012
Debt Disclosure [Text Block]
11.   Notes Payable

The Company’s credit agreement with General Electric Capital Corporation, originally dated December 21, 2004, has been amended and restated on two occasions to reflect requirements for funds to complete two acquisitions and the use of proceeds from the Company’s successful offering of 3,000,000 IDSs on July 5, 2007.  On October 20, 2008, the Company completed its second amendment and restatement of its credit agreement, increasing the principal balance from $64.6 million to $173.5 million for the acquisition of Pine Tree Holdings, Inc., Granby Holdings, Inc. and War Holdings, Inc. from Country Road Communications LLC, and extending the maturity from July 3, 2011 to October 31, 2013.  As of December 31, 2012, the variable margin based on leverage was 4.25% plus LIBOR.  On May 9, 2011, November 9, 2010, and August 8, 2009, the Company made voluntary prepayments of $0.4 million, $6.1 million, and $5.0 million, respectively, reducing the credit facility notes payable balance to $162.0 million at December 31, 2012.

Notes payable consists of the following:

   
December 31,
 
   
2011
   
2012
 
Term credit facility, General Electric Capital Corporation; variable interest rate of 4.46% at December 31, 2012. There are no scheduled principal payments. Interest payments are due on the last day of each LIBOR period or at one month intervals, whichever date comes first. The unpaid balance was scheduled to be due October 31, 2013. The credit facility is secured by the total assets of the subsidiary guarantors.
  $ 162,000,000     $ 162,000,000  
                 
13% Senior subordinated notes, due 2019; interest payments are due quarterly.  On June 8, 2010, IDSs that included $4,085,033 in senior subordinated debt were issued in the conversion of Class B shares. Premium amortization for the years ended December 31, 2011 and 2012 was $103,640 and $116,364, respectively.
    100,606,387       100,490,023  
                 
13%  Senior subordinated notes, held separately, due 2019; interest payments are due quarterly.
    8,500,000       8,500,000  
                 
Total notes payable
  $ 271,106,387     $ 270,990,023  
                 
Less: current portion
    -       270,990,023  
                 
Long-term notes payable
  $ 271,106,387     $ -  

Associated with these notes payable, the Company has capitalized and amortized deferred financing cost over the life of the debt obligation.   The Company capitalized $5.3 million in deferred financing costs with the amendment of the credit facility in October 2008.   The Company capitalized $4.2 million in deferred financing cost associated with subordinated debt.   Amortization of deferred financing costs is reflected in interest expense.

As of December 31, 2012, the Company had a revolving credit facility of $15,000,000.  There was no balance as of December 31, 2011 and 2012.  The interest rate was the index rate plus a variable margin or LIBOR rate plus a variable margin, whichever was applicable.  The margin at December 31, 2011 and 2012 was 4.25%.  The Company pays a commitment fee of 0.50% per annum, payable quarterly in arrears, on the unused portion of the revolver loan.  The commitment fee expense was $76,042 and $76,250 for the years ended December 31, 2011 and 2012, respectively.

Maturities of notes payable for the next five years are as follows:

2013 (1)
  $ 269,660,531  
2014
    -  
2015
    -  
2016
    -  
2017
    -  
Thereafter
    -  
     Total principal
  $ 269,660,531  
Unamortized premium (2)
    1,329,492  
     Total
  $ 270,990,023  
         
   
   
   
   

(1) The filing of the Reorganization Cases constituted an event of default and triggered the automatic and immediate acceleration of debt outstanding under the terms of the Company's senior credit facility and the indenture governing the Company's senior subordinated notes. The notes payable for 2013 reflects such acceleration.

(2) The unamortized premium is associated with the 3,000,000 IDS units issued July 5, 2007.

The Company's notes payable agreements are subject to certain financial covenants and restrictions on indebtedness, financial guarantees, business combinations and other related items. As of December 31, 2012, the Company was in compliance with all such covenants and restrictions.