JNS » Topics » Note 5-Long-Term Debt

This excerpt taken from the JNS 10-Q filed Oct 25, 2007.

Note 6 – Long-Term Debt

 

On June 14, 2007, Janus issued $300.0 million of 6.250% Senior Notes due June 15, 2012, and $450.0 million of 6.700% Senior Notes due June 15, 2017 (collectively the “2007 senior notes”).  Interest will be paid semiannually on June 15 and December 15 of each year, beginning December 15, 2007.   The proceeds from the June 14, 2007 issuances were $748.4 million.  On June 26, 2007, approximately $160.0 million of the total proceeds were used to repay the 7.875% Senior Notes due 2032 plus accrued and unpaid interest as of the redemption date.  The remaining proceeds may be used for possible future acquisitions, the repurchase of Janus’ common stock, and/or general corporate purposes.

 

This excerpt taken from the JNS 10-Q filed Jul 30, 2007.

Note 5 — Long-Term Debt

On June 14, 2007, Janus issued $300.0 million of 6.250% Senior Notes due June 15, 2012, and $450.0 million of 6.700% Senior Notes due June 15, 2017 (collectively the “2007 senior notes”).  Interest will be paid semiannually on June 15 and December 15 of each year, beginning December 15, 2007.   The proceeds from the June 14, 2007 issuances were $748.4 million.  On June 26, 2007, approximately $160.0 million of the total proceeds were used to repay the 7.875% Senior Notes due 2032 plus accrued and unpaid interest as of the redemption date.  The remaining proceeds may be used for possible future acquisitions, the repurchase of Janus’ common stock, and/or general corporate purposes.

If the Company experiences a change of control and the 2007 senior notes are rated below investment grade by Standard & Poor’s Rating Service (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), the Company must

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offer to repurchase all of the 2007 senior notes at a price equal to 101% of the principal amount plus accrued and unpaid interest to the repurchase date.

The terms of the 2007 senior notes also include an interest rate adjustment covenant that provides that the interest rate payable on 2007 senior notes will increase by 25 basis points for each level that the Company’s debt rating is decreased by Moody’s from its existing rating of Baa3 or by S&P from its existing rating of BBB-, up to a maximum increase of 200 basis points.  If at any time after the interest on the new notes has been adjusted upward, either Moody’s or S&P increases its rating on the new notes, then for each level of such increase in the rating the interest payable on the new notes will be decreased by 25 basis points, but in no event to a rate less than the interest rate payable on the date of their issuance.  The interest rate adjustment covenant will permanently terminate  if the new notes become rated Baa2 by Moody’s and BBB by S&P (or higher), with a stable or positive outlook regardless of any subsequent decrease in the ratings by either or both rating agencies.

In addition, Janus entered into supplemental indentures to add the same interest rate adjustment covenant to the terms of all of its outstanding 5.875% Senior Notes due September 15, 2011, 6.119% Senior Notes due April 15, 2014, and 7.750% Senior Notes due June 15, 2009.

This excerpt taken from the JNS 10-Q filed Nov 7, 2006.

Note 5—Long-Term Debt

On September 18, 2006, Janus issued $275.0 million of 5.875% senior notes that are due September 15, 2011, and are not callable by Janus or redeemable at the option of the holders prior to maturity. Interest will be paid semiannually on March 15 and September 15. Of the total proceeds, $113.1 million was placed in escrow to pre-fund the repayment of Janus' 7.000% senior notes which mature on November 1, 2006.

On May 2, 2006, Janus entered into a pay-fixed receive-variable interest rate swap (the "Swap") in anticipation of a $272.0 million fixed rate debt issuance with a mandatory termination date of May 4, 2007. The Swap was designated as a cash flow hedge and was designed to hedge the variability in interest payments on the anticipated fixed rate debt as a result of changes in the interest rate between inception of the Swap and the issuance of the debt. On September 18, 2006, the Swap was terminated and Janus incurred a loss of $4.4 million, or $2.7 million net of tax, which has been recorded in other comprehensive income on the consolidated balance sheet and will be amortized to interest expense over the life of the 5.875% senior notes.

This excerpt taken from the JNS 10-K filed Mar 3, 2006.

NOTE 11 — LONG-TERM DEBT

 Long-term debt at December 31, 2005 and 2004, consisted of the following (in millions):

 
  2005
  2004
 
  Carrying
Value

  Fair
Value

  Carrying
Value

  Fair
Value

6.119% Senior Notes due 2014   $ 82.1   $ 83.6   $ 82.1   $ 87.4
7.000% Senior Notes due 2006     114.1     114.7     115.3     121.6
7.750% Senior Notes due 2009     22.0     23.5     22.0     24.9
7.875% Senior Notes due 2032     158.1     161.9     158.1     169.9
   
 
 
 
Total     376.3     383.7     377.5     403.8
Less: current maturities     (114.1 )   (114.7 )      
   
 
 
 
Total long-term debt   $ 262.2   $ 269.0   $ 377.5   $ 403.8
   
 
 
 

Fair Value of Long-Term Debt

 The fair value of long-term debt was calculated using market quotes or, if market quotes were not available, by discounting future cash flows using market interest rates for debt with similar terms and maturities.

6.119% Senior Notes Due 2014

 On April 26, 2004, Janus issued $527.4 million of 6.119% senior notes that are due April 15, 2014, $178.2 in exchange for $465.1 million of senior notes (composed of $286.9 million of the 7.000% senior notes and $178 million of the 7.750% senior notes). The 6.119% senior notes pay interest semiannually on April 15 and October 15. On May 19, 2004, Janus' wholly-owned subsidiary, CGP, exercised its right to repurchase $445.0 million aggregate principal amount of the 6.119% senior notes. This transaction resulted in a non-operating charge of $55.5 million, primarily related to the premium paid to exchange the old notes for the new notes given declines in interest rates. As CGP owns the $445.0 million of repurchased notes, Janus makes regular interest payments to CGP. Such payments are eliminated in consolidation.

7.000% Senior Notes Due 2006

 On November 6, 2001, Janus issued 7.000% senior notes that are due November 1, 2006, and are not callable by Janus or redeemable by the holders prior to maturity. Interest is paid semiannually on November 1 and May 1.

7.750% Senior Notes Due 2009

 On July 2, 2002, Janus issued 7.750% senior notes that are due June 15, 2009, and are not callable by Janus or redeemable by the holders prior to maturity. Interest is paid semiannually on June 15 and December 15.

7.875% Senior Notes ("Retail Notes")

 On April 5, 2002, Janus issued 7.875% senior notes that are due April 15, 2032, which are not callable by Janus until April 2007; thereafter, the Retail Notes are callable at any time, in whole or in part, at par plus accrued and

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unpaid interest. Interest is paid quarterly. The Retail Notes are listed on the New York Stock Exchange ("NYSE") under the symbol "SVQ" and were offered in $25 increments to individual investors.

Credit Facility

 On October 19, 2005, the Company entered into a $200 million Three-Year Competitive Advance and Revolving Credit Facility Agreement with a syndicate of banks (the "Facility"). The Facility contains a number of financial covenants such as a specified financing leverage ratio, minimum net worth and interest coverage ratio. Janus was in compliance with the provisions of the Facility, including the financial covenants, as of December 31, 2005. Janus had no borrowings under the Facility during 2005.

Aggregate Maturities of Indebtedness

 The aggregate amounts of debt maturing in the next five years are as follow (in millions):

2006   $ 114.1
2007    
2008    
2009     22.0
2010    
Thereafter     240.2
   
Total   $ 376.3
   
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