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Long-Term Debt
9 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract]  
Long-Term Debt
Long-Term Debt

On May 10, 2013, the Company issued $50.0 million principal amount of 6.00% Senior Notes. The Senior Notes bear interest payable semi-annually in arrears on May 15 and November 15. In connection with the ViSalus recapitalization, the Company amended the indenture governing the Senior Notes to provide for the mandatory redemption of the Senior Notes on the earlier of March 4, 2015 or the date, if any, that the Company consummates a new financing in the amount of at least $50.0 million. This amendment was accounted for as a modification in accordance with ASC section 470-50 “Debt -Modifications and Extinguishments.” As a result, the Company will be required to a pay a $3.0 million redemption premium in addition to normal interest on or before March 4, 2015 or sooner if the Company consummates new financing in the amount of at least $50.0 million. The redemption premium will be expensed on a pro rata basis from September 4, 2014 through the redemption date. As of September 30, 2014, the Company recorded $0.4 million of additional interest expense associated with the redemption premium. The Company has classified the Senior Notes as current. In addition, to secure the obligations under the indenture, the Company granted a security interest to the lender in substantially all of its personal property and certain of its real property. See Note 2 and “Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.”

As of September 30, 2014 and December 31, 2013, Silver Star Brands had approximately $5.0 million and $5.5 million, respectively, of long-term debt outstanding under a real estate mortgage note payable which matures June 1, 2020.  Under the terms of the note, payments of principal and interest are required monthly at a fixed interest rate of 7.89%.
 
The Company’s debt is recorded at its amortized cost basis which approximates its fair value.

As of September 30, 2014, the Company had a total of $2.4 million available under an uncommitted bank facility to be used for letters of credit. The issuance of letters of credit under this facility will be available until January 31, 2015.  As of September 30, 2014, no amount was outstanding under this facility.

As of September 30, 2014, the Company had $1.1 million in standby letters of credit outstanding that are collateralized with a certificate of deposit and have an expiration date of March 1, 2015.