Debt |
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| Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt |
(11) Debt
Our debt consists of the following:
(a) 3.25% Convertible Notes due 2011
In October 2004, we issued $230,000 in aggregate principal amount of 3.25% Convertible Notes
due October 15, 2011 (the “3.25% Notes”), which are convertible, at the option of the holder, into
shares of our common stock at any time at a conversion rate of 188.6792 shares of common stock for
each $1,000 principal amount, or $5.30 per share of common stock, subject to certain adjustments.
Interest is payable semi-annually on April 15 and October 15 of each year. The obligations under
the 3.25% Notes are not secured by any of our assets.
In 2011, we purchased $168,113 of the outstanding 3.25% Notes at prices between 100.75% and
101% of the principal amount plus accrued interest. We recognized a loss on extinguishment of debt
for the 3.25% Notes of $2,291 for the nine months ended September 30, 2011, which consists
primarily of cash premiums paid, unamortized discount and deferred financing fees. The remaining
$23,866 in principal amount of the 3.25% Notes was paid in October 2011 upon maturity.
(b) 8.75% Senior Notes due 2015
In March 2010, we issued $800,000 aggregate principal amount of 8.75% Senior Notes due 2015
(the “8.75% Notes”). Interest is payable semi-annually in arrears on April 1 and October 1 of each
year at a rate of 8.75% per annum. The 8.75% Notes mature on April 1, 2015. The 8.75% Notes were
issued for $786,000, resulting in an aggregate original issuance discount of $14,000. Substantially
all of our domestic wholly-owned subsidiaries guarantee our obligations under the 8.75% Notes on a
senior unsecured basis.
(c) 9.75% Senior Secured Notes due 2015
In August 2009, we issued $257,000 aggregate principal amount of 9.75% Senior Secured Notes
due September 1, 2015 (the “9.75% Notes”). Interest is payable semi-annually in arrears on March 1
and September 1 of each year at a rate of 9.75% per annum. The 9.75% Notes were issued for
$244,292, resulting in an aggregate original issuance discount of $12,708. Substantially all of our
domestic wholly-owned subsidiaries guarantee our obligations under the 9.75% Notes. The 9.75% Notes
and related guarantees are secured by first-priority liens on substantially all of our assets and
the assets of the guarantors.
(d) 11.25% Senior Secured Notes due 2013
In June 2009, we issued $525,750 aggregate principal amount of 11.25% Senior Secured Notes due
2013 (the “11.25% Notes”). The 11.25% Notes were issued for $488,398, resulting in an aggregate
original issuance discount of $37,352.
In October 2010, we purchased $489,065 in aggregate principal amount of the 11.25% Notes. The
aggregate purchase price for the 11.25% Notes was $567,927. We recorded an aggregate loss on
extinguishment of the 11.25% Notes of $85,216, consisting primarily of unamortized discount,
deferred financing fees and repayment premium to Loss on extinguishment of debt and credit
facilities, net, in our 2010 consolidated statement of operations. The remainder of the 11.25%
Notes of $36,685 was purchased in January 2011 for an aggregate purchase price of $40,376. A loss
from extinguishment of debt of $4,915 associated with this purchase was recorded during the nine
months ended September 30, 2011.
(e) 13% Senior Notes due 2013
In July 2008, we issued $778,500 aggregate principal amount of 13% Senior Notes due 2013 (the
“13% Notes”). Interest is payable semi-annually in arrears on February 1 and August 1 of each year
at a rate of 13% per annum. The 13% Notes mature on August 1, 2013. Substantially all of our
domestic wholly-owned subsidiaries guarantee the obligations under the 13% Notes.
(f) 7% Exchangeable Senior Subordinated Notes due 2014
In August 2008, we issued $550,000 aggregate principal amount of 7% Exchangeable Senior
Subordinated Notes due 2014 (the “Exchangeable Notes”). The Exchangeable Notes are senior
subordinated obligations and rank junior in right of payment to our existing and future senior debt
and equally in right of payment with our existing and future senior subordinated debt.
Substantially all of our domestic wholly-owned subsidiaries have guaranteed the Exchangeable Notes
on a senior subordinated basis.
Interest is payable semi-annually in arrears on June 1 and December 1 of each year at a rate
of 7% per annum. The Exchangeable Notes mature on December 1, 2014. The Exchangeable Notes are
exchangeable at any time at the option of the holder into shares of our common stock at an initial
exchange rate of 533.3333 shares of common stock per $1,000 principal amount of Exchangeable Notes,
which is equivalent to an approximate exchange price of $1.875 per share of common stock. During
the second quarter of 2011, the common stock reserved for exchange in connection with the
Exchangeable Notes were considered to be dilutive in our calculation of diluted net income per
common share since our stock price was greater than the exchange price. Our stock price
as of
September 30, 2011 was below the exchange price and therefore these shares were excluded from the
calculation of diluted net income per common share for the three and nine months ended September
30, 2011 as the effect would have been anti-dilutive.
(g) 7.625% Senior Notes due 2018
In October 2010, we issued $700,000 aggregate principal amount of 7.625% Senior Notes due 2018
(the “7.625% Senior Notes”). Interest is payable semi-annually in arrears on May 1 and November 1
of each year at a rate of 7.625% per annum. A majority of the net proceeds were used to purchase
$489,065 aggregate principal amount of the 11.25% Notes. The 7.625% Senior Notes mature on
November 1, 2018. Substantially all of our domestic wholly-owned subsidiaries guarantee our
obligations under the 7.625% Senior Notes.
Covenants and Restrictions
Our debt generally requires compliance with certain covenants that restrict our ability to,
among other things, (i) incur additional indebtedness unless our consolidated leverage ratio would
be no greater than 6.00 to 1.00 after the incurrence of the indebtedness, (ii) incur liens, (iii)
pay dividends or make certain other restricted payments, investments or acquisitions, (iv) enter
into certain transactions with affiliates, (v) merge or consolidate with another person, (vi) sell,
assign, lease or otherwise dispose of all or substantially all of our assets, and (vii) make
voluntary prepayments of certain debt, in each case subject to exceptions.
Under our debt agreements, the following generally constitute an event of default: (i) a
default in the payment of interest; (ii) a default in the payment of principal; (iii) failure to
comply with covenants; (iv) failure to pay other indebtedness after final maturity or acceleration
of other indebtedness exceeding a specified amount; (v) certain events of bankruptcy; (vi) a
judgment for payment of money exceeding a specified aggregate amount; and (vii) voidance of
subsidiary guarantees, subject to grace periods where applicable. If an event of default occurs
and is continuing, our debt could become immediately due and payable.
At September 30, 2011, we were in compliance with our debt covenants.
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