Long-Term Debt |
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| Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt |
4. Long-Term Debt
Long-term debt consists of the following:
Interest expense was $3.1 million and $2.7 million for the three months ended September 30,
2011 and 2010, respectively, and $9.5 million and $7.7 million for the nine months ended September
30, 2011 and 2010, respectively. Interest expense for the nine months ended September 30, 2011
included a $0.9 million write-off of unamortized deferred financing costs resulting from the
extinguishment of the prior senior secured credit facility, or the Prior Credit Facility, as
discussed below.
On March 9, 2011, the Company entered into a $700.0 million senior secured revolving credit
facility, or the New Credit Facility, with a syndicate of financial institutions as lenders and
terminated its Prior Credit Facility that consisted of a term loan and a revolving credit facility.
The New Credit Facility has a five year maturity and expires on March 9, 2016. During March 2011,
U.S. dollar borrowings under the New Credit Facility incurred interest at the base rate plus a
margin of 0.75% or LIBOR plus a margin of 1.75%. After March 2011, based on the Company’s
consolidated leverage ratio, U.S. dollar borrowings under the New Credit Facility bear interest at
either LIBOR plus the applicable margin between 1.50% and 2.50% or the base rate plus the
applicable margin between 0.50% and 1.50%. The Company, based on its consolidated leverage ratio,
pays a commitment fee between 0.25% and 0.50% per annum on the unused portion of the New Credit
Facility. The New Credit Facility also permits the Company to borrow limited amounts in Mexican
Peso and Euro currencies based on variable rates. The base rate under the New Credit Facility
represents the highest of the Federal Funds Rate plus 0.50%, one-month LIBOR plus 1.00%, and the
prime rate offered by Bank of America.
In March 2011, the Company used $196.0 million in U.S. dollar borrowings under the New Credit
Facility to repay all amounts outstanding under the Prior Credit Facility. The Company incurred
approximately $5.7 million of debt issuance costs in connection with the New Credit Facility. These
debt issuance costs were recorded as deferred financing costs on the Company’s condensed
consolidated balance sheet and are being amortized over the term of the New Credit Facility. On
September 30, 2011 and December 31, 2010, the weighted average interest rate for borrowings under
the New Credit Facility and the Prior Credit Facility was 1.72% and 1.75%, respectively.
The New Credit Facility requires the Company to comply with a leverage ratio and an interest
coverage ratio. In addition, the New Credit Facility contains customary covenants, including
covenants that limit or restrict the Company’s ability to incur liens, incur indebtedness, make
investments, dispose of assets, make certain restricted payments, pay dividends, repurchase its
common shares, merge or consolidate and enter into certain transactions with affiliates. As of
September 30, 2011, the Company was compliant with its debt covenants.
During the three months ended March 31, 2011, the Company borrowed $235.7 million and $54.0
million under the New Credit Facility and Prior Credit Facility, respectively, and paid a total of
$55.7 million and $228.9 million of the New Credit Facility and Prior Credit Facility,
respectively. During the three months ended June 30, 2011, the Company borrowed $101.0 million
under the New Credit Facility and paid a total of $123.0 million of the New Credit Facility. During
the three months ended September 30, 2011, the Company borrowed $401.0 million under the New Credit
Facility and paid a total of $339.0 million of the New Credit Facility. As of September 30, 2011,
the U.S. dollar amount outstanding under the New Credit Facility was $220.0 million. There were no
outstanding foreign currency borrowings as of September 30, 2011 under the New Credit Facility. As
of December 31, 2010, the amounts outstanding under the Prior Credit Facility, consisting of a term
loan and revolving facility, were $143.9 million and $31.0 million, respectively.
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