LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Schedule of Debt

Summary

	March 31, 2019			December 31, 2018
Long-term debt	$	690,883		$	772,339
Other credit facilities and finance leases	15,613			15,891
Total long-term debt and other financing arrangements	706,496			788,230
Less: current maturities	(5,802		)	(5,545		)
Total non-current long-term debt and other financing arrangements	$	700,694		$	782,685

Schedule of Long-term Debt Instruments

Total long-term debt and credit facilities comprised the following at March 31, 2019:

	Principal Amount of Liability Component		Debt Issuance Costs (1)			Net Carrying Amount
2021 Euro Loan	$	168,902	$	(344	)	$	168,558
2023 Euro Loan	526,697		(4,372		)	522,325
2023 Revolving Credit Facility	—		—			—
Total long-term debt and credit facilities	$	695,599	$	(4,716	)	$	690,883

⁽¹⁾  Debt issuance costs related to the 2021 Euro Loan, the 2023 Euro Loan and the 2023 Revolving Credit Facility (each as defined below) are being amortized on a straight-line basis, which approximates the effective interest method, over the life of the respective instruments. Debt issuance costs related to the 2023 Revolving Credit Facility are classified as non-current assets in our condensed consolidated balance sheet

Our long-term debt comprised the following at March 31, 2019 and December 31, 2018:

	Carrying Amount				Fair Value
	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
2021 Euro Loan	$	168,558	$	240,296	$	164,943	$	233,058
2023 Euro Loan	522,325		532,043		502,730		502,617
	$	690,883	$	772,339	$	667,673	$	735,675

Schedule of Guarantor Obligations

We pay Guarantee Fees to Warner Media based on the amounts outstanding on the Euro Loans calculated on a per annum basis and on our consolidated net leverage (as defined in the Reimbursement Agreement) as shown in the tables below:

All-in Rate

Consolidated Net Leverage				2021 Euro Loan		2023 Euro Loan
≥	7.0x			6.00	%	6.50	%
<	7.0x	-	6.0x	5.00	%	5.50	%
<	6.0x	-	5.0x	4.25	%	4.75	%
<	5.0x	-	4.0x	3.75	%	4.25	%
<	4.0x	-	3.0x	3.25	%	3.75	%
<	3.0x			3.25	%	3.50	%

, the following spreads were applicable:

Consolidated Net Leverage				Alternate Base Rate Loans		Eurodollar Loans
≥	7.0x			5.25	%	6.25	%
<	7.0x	-	6.0x	4.25	%	5.25	%
<	6.0x	-	5.0x	3.50	%	4.50	%
<	5.0x	-	4.0x	3.00	%	4.00	%
<	4.0x	-	3.0x	2.50	%	3.50	%
<	3.0x			2.25	%	3.25	%

Schedule of Interest Rate Summary

Interest Rate Summary

	Base Rate			Rate Fixed Pursuant to Interest Rate Hedges			Guarantee Fee Rate		All-in Borrowing Rate
2021 Euro Loan	1.28	%		0.31	%	(1)	1.66	%	3.25	%
2023 Euro Loan	1.28	%		0.28	%	(2)	2.19	%	3.75	%
2023 Revolving Credit Facility (if drawn)	6.10	%	(3)	—	%		—	%	6.10	%

⁽¹⁾  Effective until November 1, 2019. From November 1, 2019 through maturity on November 1, 2021, the rate fixed pursuant to interest rate hedges will increase to 0.47%, with a corresponding decrease in the Guarantee Fee rate, such that the all-in borrowing rate remains 3.25% if our net leverage ratio remains unchanged.

⁽²⁾  Effective until February 19, 2021. From February 19, 2021 through maturity on April 26, 2023, the rate fixed pursuant to interest rate hedges will increase to 0.97%, with a corresponding decrease in the Guarantee Fee rate, such that the all-in borrowing rate remains 3.75% if our net leverage ratio remains unchanged.

⁽³⁾  Based on the three month LIBOR of 2.60% as at March 31, 2019.

Credit Facilities And Capital Lease Obligations

Other credit facilities and finance lease obligations comprised the following at March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Credit facilities (1) – (4)	$	—		$	—
Finance leases (Note 11)	15,613			15,891
Total credit facilities and finance leases	15,613			15,891
Less: current maturities	(5,802		)	(5,545		)
Total non-current credit facilities and finance leases	$	9,811		$	10,346

⁽¹⁾  We have a cash pooling arrangement with Bank Mendes Gans (“BMG”), a subsidiary of ING Bank N.V. (“ING”), which enables us to receive credit throughout the group in respect of cash balances which our subsidiaries deposit with BMG. Cash deposited by our subsidiaries with BMG is pledged as security against the drawings of other subsidiaries up to the amount deposited.

As at March 31, 2019, we had deposits of US$ 56.5 million in and no drawings on the BMG cash pool. Interest is earned on deposits at the relevant money market rate. As at December 31, 2018, we had deposits of US$ 36.8 million in and no drawings on the BMG cash pool.

⁽²⁾ Under a factoring framework agreement with Factoring Česka spořitelna a.s., up to CZK 475.0 million (approximately US$ 20.7 million) of receivables from certain customers in the Czech Republic may be factored on a recourse or non-recourse basis. The facility has a factoring fee of 0.19% of any factored receivable and bears interest at one-month PRIBOR plus 0.95% per annum for the period that receivables are factored and outstanding.

⁽³⁾  Under a factoring framework agreement with Factoring KB, a.s., up to CZK 270.0 million (approximately US$ 11.8 million) from certain customers in the Czech Republic may be factored on a non-recourse basis. The facility has a factoring fee of 0.11% of any factored receivable and bears interest at one-month PRIBOR plus 0.95% per annum for the period that receivables are factored and outstanding up to a maximum of 60 days from the due date.

⁽⁴⁾  Under a factoring framework agreement with Global Funds IFN S.A., receivables from certain customers in Romania may be factored on a non-recourse basis. The facility has a factoring fee of 4.0% of any factored receivable and bears interest at 6.0% per annum from the date the receivables are factored to the due date of the factored receivable.

Maturity Of Senior Debt And Credit Facility

At March 31, 2019, the maturity of our long-term debt and credit facilities was as follows:

2019	$	—
2020	—
2021	168,902
2022	—
2023	526,697
2024 and thereafter	—
Total long-term debt and credit facilities	695,599
Debt issuance costs	(4,716		)
Carrying amount of long-term debt and credit facilities	$	690,883