XML 25 R14.htm IDEA: XBRL DOCUMENT v3.20.2
Debt and Other Financing Arrangements
9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Debt and Other Financing Arrangements

 


6.    Debt and Other Financing Arrangements

The Company’s debt consists of the following:

 

 

September 30,

 

 

December 31,

 

(dollars in millions)

 

2020

 

 

2019

 

Current portion of long-term debt:

 

 

 

 

 

 

 

 

Credit Agreement - Tranche B Term Loan due 2024

 

$

6.0

 

 

$

6.0

 

Other financing arrangements

 

 

2.0

 

 

 

2.0

 

Finance lease liabilities

 

 

13.6

 

 

 

14.3

 

Current portion of long-term debt

 

 

21.6

 

 

 

22.3

 

Long-term debt, less current portion:

 

 

 

 

 

 

 

 

Receivables Facility

 

 

179.5

 

 

 

131.5

 

Credit Agreement - Revolving Credit Facility

 

 

57.0

 

 

 

57.0

 

Credit Agreement - Tranche B Term Loan due 2024

 

 

582.0

 

 

 

586.5

 

7 1/4% Senior Notes due 2023

 

 

22.3

 

 

 

22.3

 

7% Senior Notes due 2024

 

 

625.0

 

 

 

625.0

 

8% Senior Notes due 2025

 

 

350.0

 

 

 

350.0

 

Various Cincinnati Bell Telephone notes

 

 

87.9

 

 

 

87.9

 

Other financing arrangements

 

 

1.3

 

 

 

3.2

 

Finance lease liabilities

 

 

50.3

 

 

 

59.5

 

 

 

 

1,955.3

 

 

 

1,922.9

 

Net unamortized premium

 

 

1.1

 

 

 

1.3

 

Unamortized note issuance costs

 

 

(20.0

)

 

 

(22.9

)

Long-term debt, less current portion

 

 

1,936.4

 

 

 

1,901.3

 

Total debt

 

$

1,958.0

 

 

$

1,923.6

 

 

Credit Agreement

The Company had $57.0 million of outstanding borrowings on the Revolving Credit Facility, leaving $143.0 million available for borrowings as of September 30, 2020. The Credit Agreement expires in October 2022.

Accounts Receivable Securitization Facility

As of September 30, 2020, the Company had $179.5 million in borrowings and $12.4 million of letters of credit outstanding under the accounts receivable securitization facility ("Receivables Facility”), leaving $8.1 million remaining availability on the total borrowing capacity of $200.0 million. In the second quarter of 2020, the Company executed amendments to its Receivables Facility, which replaced, amended and added certain provisions and definitions to decrease the credit availability and renew the facility, which is subject to renewal every 364 days, until May 2021, and extend the facility’s termination date to May 2023. The maximum borrowing limit for loans and letters of credit under the Receivables Facility was reduced from $225.0 million to $200.0 million in the aggregate. The available borrowing capacity is calculated monthly based on the quantity and quality of outstanding accounts receivable, and thus may be lower than the maximum borrowing limit. The amendments also added provisions for a successor to LIBOR in the event LIBOR is no longer applicable and made technical changes to account for the continued integration of the Company’s Hawaiian Telcom and OnX acquisitions into the facility. In addition, a provision was added that the LIBOR rate for the Receivables Facility may not fall below 0.75%.

 

Under the Receivables Facility, certain U.S. and Canadian subsidiaries, as originators, sell their respective trade receivables on a continuous basis to Cincinnati Bell Funding LLC (“CBF”) or Cincinnati Bell Funding Canada Ltd. ("CBFC"), wholly-owned consolidated subsidiaries of the Company. Although CBF and CBFC are wholly-owned consolidated subsidiaries of the Company, CBF and CBFC are legally separate from the Company and each of the Company’s other subsidiaries. Upon and after the sale or contribution of the accounts receivable to CBF or CBFC, such accounts receivable are legally assets of CBF and CBFC and, as such, are not available to creditors of other subsidiaries or the parent company. The Receivables Facility includes an option for CBF to sell, rather than borrow against, certain receivables on a non-recourse basis. As of September 30, 2020, there was no outstanding balance for accounts receivable sold.