Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt (Note)

v3.8.0.1
Long-Term Debt (Note)
 9 Months Ended
Sep. 30, 2017
Long-term Debt, Unclassified [Abstract]  
Long-Term Debt
LONG-TERM DEBT
The balance of long-term debt, including current maturities, is as follows (in thousands):
 
 
September 30,
 
December 31,
 
September 30,
 
 
2017
 
2016
 
2016
Secured credit agreement expiring January 27, 2020:
 
 
 
 
 
 
Term loan
 
$
456,250

 
$
475,000

 
$
481,250

Revolving credit facility
 
20,000

 
40,000

 
150,000

Long-term debt
 
476,250

 
515,000

 
631,250

Unamortized deferred financing costs
 
(3,827
)
 
(5,122
)
 
(5,563
)
Long-term debt, net of unamortized deferred financing costs
 
472,423

 
509,878

 
625,687

Less: current maturities
 
(34,375
)
 
(25,000
)
 
(25,000
)
Long-term debt, less current maturities and net of unamortized deferred financing costs
 
$
438,048

 
$
484,878

 
$
600,687



On January 27, 2015, HSNi entered into a $1.25 billion five-year syndicated credit agreement ("Credit Agreement") which is secured by 100% of the voting equity securities of HSNi's U.S. subsidiaries and 65% of HSNi's first-tier foreign subsidiaries. Certain HSNi subsidiaries have unconditionally guaranteed HSNi's obligations under the Credit Agreement.  The Credit Agreement, which includes a $750 million revolving credit facility and a $500 million term loan, may be increased up to $1.75 billion subject to certain conditions and expires January 27, 2020.

The Credit Agreement includes various covenants, limitations and events of default customary for similar facilities including a maximum leverage ratio of 3.50x and a minimum interest coverage ratio of 3.00x (both as defined in the Credit Agreement). HSNi was in compliance with all such covenants as of September 30, 2017 with a leverage ratio of 1.8x and an interest coverage ratio of 17.9x.

Loans under the Credit Agreement bear interest at a per annum rate equal to LIBOR plus a predetermined margin that ranges from 1.25% to 2.25% or the Base Rate (as defined in the Credit Agreement) plus a predetermined margin that ranges from 0.25% to 1.25%.  HSNi can elect to borrow at either LIBOR or the Base Rate plus a predetermined margin which is determined by HSNi's leverage ratio. The interest rate on the $476.3 million outstanding long-term debt balance as of September 30, 2017 was 2.74%.  HSNi pays a commitment fee ranging from 0.20% to 0.40% (based on the leverage ratio) on the unused portion of the revolving credit facility. 

The amount available to HSNi under the revolving credit facility portion of the Credit Agreement is reduced by the amount of outstanding letters of credit issued under the revolving credit facility, which totaled $14.5 million as of September 30, 2017. The ability to draw funds under the revolving credit facility is dependent upon meeting the aforementioned financial covenants. As of September 30, 2017, the amount that could be borrowed under the revolving credit facility, after consideration of the financial covenants and the outstanding letters of credit, was approximately $429.8 million.