Quarterly report pursuant to Section 13 or 15(d)

Debt

v2.4.0.6
Debt
3 Months Ended
Jun. 30, 2012
Debt  
Debt

Note 2. Debt

 

A summary of debt is as follows (amounts in thousands):

 

 

 

June 30,
2012

 

March 31,
2012

 

10.5% Senior Notes, net of premium of $4,210 and $3,539 as of June 30, 2012 and March 31, 2012, respectively

 

$

359,210

 

$

343,539

 

Other

 

2,076

 

3,792

 

Total debt

 

361,286

 

347,331

 

Current maturities

 

(1,535

)

(1,951

)

Total long-term debt

 

$

359,751

 

$

345,380

 

 

The line item “Interest expense” on the Condensed Consolidated Statements of Operations for the quarters ended June 30, 2012 and 2011, is as follows (amounts in thousands):

 

 

 

Quarters Ended June 30,

 

 

 

2012

 

2011

 

Contractual interest expense

 

$

9,486

 

$

6,356

 

Amortization of debt issuance costs

 

426

 

276

 

Amortization of debt (premium) discount

 

(153

)

656

 

Imputed interest on acquisition related obligations

 

698

 

112

 

 

 

$

10,457

 

$

7,400

 

 

10.5% Senior Notes

 

On May 5, 2010, the Company completed a private placement of $230.0 million in aggregate principal amount of the Company’s 10.5% Senior Notes due 2018 (the “10.5% Senior Notes”).  On March 27, 2012 and April 3, 2012, the Company completed the sale of $110.0 million and $15.0 million aggregate principal amount of its 10.5% Senior Notes due 2018, respectively,  at an issue price of 105.5% of the principal amount plus accrued interest from November 1, 2011. The Senior Notes were issued as additional notes under the indenture, dated May 5, 2010, among the Company, the guarantors party thereto and Wilmington Trust Company, as trustee. Debt issuance costs related to the 10.5% Senior Notes, net of amortization, were $7.7 million as of June 30, 2012; these costs are being amortized over the term of the 10.5% Senior Notes.  Debt premium related to the 10.5% Senior Notes as of June 30, 2012 were $4.2 million which will be amortized over the term of the 10.5% Senior Notes.

 

The Company had interest payable related to the 10.5% Senior Notes included in the line item “Accrued expenses” on its Condensed Consolidated Balance Sheets of $6.2 million and $14.7 million at June 30, 2012 and March 31, 2012, respectively.

 

Revolving Line of Credit

 

On September 30, 2010, KEMET Electronics Corporation (“KEC”) and KEMET Electronics Marketing (S) Pte Ltd. (“KEMET Singapore”) (each a “Borrower” and, collectively, the “Borrowers”) entered into a Loan and Security Agreement (the “Loan and Security Agreement”), with Bank of America, N.A, as the administrative agent and the initial lender. The Loan and Security Agreement provides a $50 million revolving line of credit, which is bifurcated into a U.S. facility (for which KEC is the Borrower) and a Singapore facility (for which KEMET Singapore is the Borrower).  The size of the U.S. facility and Singapore facility can fluctuate as long as the Singapore facility does not exceed $30 million and the total facility does not exceed $50 million.  A portion of the U.S. facility and of the Singapore facility can be used to issue letters of credit.  The facilities expire on September 30, 2014.

 

Debt issuance costs related to the Loan and Security Agreement, net of amortization, were $0.9 million as of June 30, 2012 and March 31, 2012.  These costs are being amortized over the term of the Loan and Security Agreement.  There were no borrowings against the Loan and Security Agreement as of June 30, 2012 and March 31, 2012.