Note 2 - Long-term Debt

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Text Block]

2.         Long-term Debt

As of  March 31, 2013 and December 31, 2012, long-term debt consisted of our obligations under our senior credit facility (the “2012 Senior Credit Facility”) and our 7½% Senior Notes due 2020 (the “2020 Notes”) as follows (in thousands):

	March 31,			December 31,
	2013			2012
Long-term debt including current portion:
2012 Senior Credit Facility	$	535,000		$	535,000
2020 Notes		300,000			300,000
Total long-term debt including current portion at liquidation value		835,000			835,000
Less unamortized discount on our 2020 Notes		(2,064	)		(2,133	)
Total long-term debt at recorded value	$	832,936		$	832,867
Borrowing availability under the 2012 Senior Credit Facility	$	40,000		$	40,000

Our 2012 Senior Credit Facility consists of a revolving loan and a term loan. Excluding accrued interest, the amount outstanding under our 2012 Senior Credit Facility as of March 31, 2013 and  December 31, 2012 was comprised solely of a term loan balance of $535.0 million. Our maximum borrowing availability is limited by our required compliance with certain restrictive covenants, including a first lien net leverage ratio covenant. As of March 31, 2013 and December 31, 2012, we were in compliance with all covenants required under our debt obligations.

As of  March 31, 2013 and December 31, 2012, we had $300.0 million of our 2020 Notes outstanding.

As of March 31, 2013 and December 31, 2012, the interest rate on the balance outstanding under the 2012 Senior Credit Facility was 4.8%.  As of March 31, 2013 and December 31, 2012, the coupon interest rate and the yield on the Notes were 7.5% and 7.6%, respectively.  The yield on the Notes exceeds the coupon interest rate because the Notes were issued with “original issue discount”.

As of March 31, 2013 and December 31, 2012, we had a deferred loan cost balance, net of accumulated amortization, of $4.4 million and $4.6 million, respectively, related to the 2012 Senior Credit Facility.  As of March 31, 2013 and December 31, 2012, we had a deferred loan cost balance, net of accumulated amortization, of $6.8 million and $7.1 million, respectively, related to our 2020 Notes.

Our obligations under our 2012 Senior Credit Facility are secured by substantially all of our and our subsidiaries’ assets, including real estate. In addition, our subsidiaries are joint and several guarantors of these obligations and our ownership interests in our subsidiaries are pledged to collateralize such obligations. The 2012 Senior Credit Facility contains affirmative and restrictive covenants that we must comply with, including (a) limitations on additional indebtedness, (b) limitations on liens, (c) limitations on the sale of assets, (d) limitations on guarantees, (e) limitations on investments and acquisitions, (f) limitations on the payment of dividends and share repurchases, (g) limitations on mergers, and (h) maintenance of a total leverage ratio as set forth in the 2012 Senior Credit Facility not to exceed certain maximum limits, as well as other customary covenants for credit facilities of this type.