SBAC » Topics » Net Secured Debt and Secured Leverage Ratio

This excerpt taken from the SBAC 8-K filed May 5, 2009.

Net Secured Debt and Secured Leverage Ratio

This press release includes disclosures regarding Net Secured Debt and Secured Leverage Ratio. We define Net Secured Debt as the notional principal amount of outstanding debt minus the notional principal amount of outstanding unsecured debt and cash and cash equivalents, short-term investments and short-term restricted cash. Due to various different GAAP policies, there are situations in which the notional principal amount of the Company’s outstanding debt is not reflected on the face of the Company’s financial statements. For example the Optasite credit facility has been recorded at a discount in order to reflect its fair value as of the date of the acquisition. We believe that by including the full amount of the notional principal amount due at maturity for purposes of calculating net secured debt it will provide investors a more complete understanding of our debt and leverage position. Secured Leverage Ratio is defined as Net Secured Debt divided by Annualized Adjusted EBITDA. We have included these non-GAAP financial measures because we believe these items are indicators of our financial condition and are used by lenders to evaluate potential borrowing capacity. The non-GAAP measurements of Net Secured Debt and Secured Leverage Ratio have certain material limitations. Specifically, these measurements exclude unsecured debt and cash and cash equivalents, short term investments and short-term restricted cash thereby reducing our debt position. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis and because we are obligated to repay our unsecured debt upon its final maturity, these measures may have material limitations. In addition, since a component of our Secured Leverage Ratio is Annualized Adjusted EBITDA, this measure is subject to the same material limitations associated with Adjusted EBITDA. We compensate for these limitations by using Net Secured Debt and our Secured Leverage Ratio as only two of several comparative tools, together with GAAP measurements, to assist in the evaluation of our financial condition.

The calculations of Net Secured Debt and Secured Leverage Ratio are as follows:

 

     March 31, 2009  
     (in thousands)  

Total debt

   $ 2,504,438  

Less unsecured debt:

  

0.375% Convertible Senior Notes (carrying value of $77,066)

     (85,881 )

1.875% Convertible Senior Notes (carrying value of $410,681)

     (550,000 )
        

Secured debt

     1,868,557  

Less: Cash and cash equivalents, short-term investments, and short-term restricted cash

     (126,516 )
        

Net Secured Debt

   $ 1,742,041  
        

Divided by:

  

Annualized Adjusted EBITDA

   $ 326,604  
        

Secured Leverage Ratio

     5.3x  
        


This excerpt taken from the SBAC 8-K filed Feb 27, 2009.

Net Secured Debt and Secured Leverage Ratio

This press release includes disclosures regarding Net Secured Debt and Secured Leverage Ratio. We define Net Secured Debt as the notional principal amount of outstanding debt minus the notional principal amount of outstanding unsecured debt and cash and cash equivalents, short-term investments and short-term restricted cash. Due to various different GAAP policies, there are situations in which the notional principal amount of the Company’s outstanding debt is not reflected on the face of the Company’s financial statements. For example, commencing January 1, 2009, the Company is required to retroactively present its debt balances associated with its Convertible Senior Notes in accordance with FSP APB 14-1. In addition, the $150 million credit facility assumed in the Optasite acquisition has been recorded at a discount in order to reflect its fair value as of the date of the acquisition. We believe that by including the full amount of the notional principal amount due at maturity for purposes of calculating net secured debt it will provide investors a more complete understanding of our debt and leverage position. Secured Leverage Ratio is defined as Net Secured Debt divided by Annualized Adjusted EBITDA. We have included these non-GAAP financial measures because we believe these items are indicators of our financial condition and are used by lenders to evaluate potential borrowing capacity. The non-GAAP measurements of Net Secured Debt and Secured Leverage Ratio have certain material limitations. Specifically, these measurements exclude unsecured debt and cash and cash equivalents, short term investments and short-term restricted cash thereby reducing our debt position. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis and because we are obligated to repay our unsecured debt upon its final maturity, these measures may have material limitations. In addition, since a component of our Secured Leverage Ratio is Annualized Adjusted EBITDA, this measure is subject to the same material limitations associated with Adjusted EBITDA. We compensate for these limitations by using Net Secured Debt and our Secured Leverage Ratio as only two of several comparative tools, together with GAAP measurements, to assist in the evaluation of our financial condition.

The calculations of Net Secured Debt and Secured Leverage Ratio are as follows:

 

     December 31, 2008  
     (in thousands)  

Long term debt

   $ 2,548,660  

Current maturities of long-term debt

     6,000  

Discount on Optasite credit facility

     2,588  

Less:

  

Unsecured long-term debt

     (688,149 )
        

Secured long-term debt

     1,869,099  

Less: Cash and cash equivalents, short-term investments, and short-term restricted cash

     (117,617 )
        

Net secured debt

   $ 1,751,482  
        

Divided by:

  

Annualized Adjusted EBITDA

   $ 309,156  
        

Secured Leverage Ratio

     5.7x  
        


This excerpt taken from the SBAC 8-K filed Oct 31, 2008.

Net Secured Debt and Secured Leverage Ratio

This press release includes disclosures regarding Net Secured Debt and Secured Leverage Ratio. Net Secured Debt is defined as debt minus unsecured debt and cash and cash equivalents, short-term investments and short-term restricted cash. Commencing January 1, 2009, the Company will be required to retroactively present its debt balances associated with its Convertible Senior Notes in accordance with APB 14-1. However, we will continue to include our convertible debt at its notional principal balance upon maturity for purposes of calculating net secured debt. In connection with the acquisition of Optasite, the $150 million credit facility has been recorded at a discount in order to reflect its fair value. However, we will continue to include the Optasite credit facility at its full principal balance for purposes of calculating net secured debt. Secured Leverage Ratio is defined as Net Secured Debt divided by Annualized Adjusted EBITDA. We have included these non-GAAP financial measures because we believe these items are indicators of our financial condition and are used by lenders to evaluate potential borrowing capacity. The non-GAAP measurements of Net Secured Debt and Secured Leverage Ratio have certain material limitations. Specifically, these measurements exclude unsecured debt and cash and cash equivalents, short term investments and short-term restricted cash thereby reducing our debt position. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis and because we are obligated to repay our unsecured debt upon its final maturity, these measures may have material limitations. In addition, since a component of our Secured Leverage Ratio is Annualized Adjusted EBITDA, this measure is subject to the same material limitations associated with Adjusted EBITDA. We compensate for these limitations by using Net Secured Debt and our Secured Leverage Ratio as only two of several comparative tools, together with GAAP measurements, to assist in the evaluation of our financial condition.

The calculations of Net Secured Debt and Secured Leverage Ratio are as follows:

 

     September 30, 2008  
     (in thousands)  

Long-term debt

   $ 2,821,948  

Current maturities of long-term debt

     5,500  

Discount on Optasite credit facility

     3,000  

Less:

  

Unsecured long-term debt

     (900,000 )
        

Secured long-term debt

   $ 1,930,448  

Less: Cash and cash equivalents, short-term investments, and short-term restricted cash

     (476,585 )
        

Net secured debt

   $ 1,453,863  

Divided by:

  

Annualized Adjusted EBITDA

   $ 267,760  
        

Secured leverage ratio

     5.4 x
        


This excerpt taken from the SBAC 8-K filed Aug 4, 2008.

Net Secured Debt and Secured Leverage Ratio

This press release includes disclosures regarding Net Secured Debt and Secured Leverage Ratio. Net Secured Debt is defined as debt minus unsecured debt and cash and cash equivalents and short-term restricted cash. Secured Leverage Ratio is defined as Net Secured Debt divided by Annualized Adjusted EBITDA. We have included these non-GAAP financial measures because we believe these items are indicators of our financial condition and are used by lenders to evaluate potential borrowing capacity. The non-GAAP measurements of Net Secured Debt and Secured Leverage Ratio have certain material limitations. Specifically, these measurements exclude unsecured debt and cash and cash equivalents and short-term restricted cash thereby reducing our debt position. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis and because we are obligated to repay our unsecured debt upon its final maturity, these measures may have material limitations. In addition, since a component of our Secured Leverage Ratio is Annualized Adjusted EBITDA, this measure is subject to the same material limitations associated with Adjusted EBITDA. We compensate for these limitations by using Net Secured Debt and our Secured Leverage Ratio as only two of several comparative tools, together with GAAP measurements, to assist in the evaluation of our financial condition.


The calculations of Net Secured Debt and Secured Leverage Ratio are as follows:

 

     June 30, 2008  
     (in thousands)  

Long-term debt

   $ 2,455,000  

Less:

  

Unsecured long-term debt

     (900,000 )
        

Secured long-term debt

   $ 1,555,000  

Cash and cash equivalents and short-term restricted cash

     (242,523 )
        

Net secured debt

   $ 1,312,477  

Divided by:

  

Annualized Adjusted EBITDA

     254,032  
        

Secured leverage ratio

     5.2x  
        
This excerpt taken from the SBAC 8-K filed May 1, 2008.

Net Secured Debt and Secured Leverage Ratio

This press release includes disclosures regarding Net Secured Debt and Secured Leverage Ratio. Net Secured Debt is defined as debt minus unsecured debt and cash and cash equivalents and short-term restricted cash. Secured Leverage Ratio is defined as Net Secured Debt divided by Annualized Adjusted EBITDA. We have included these non-GAAP financial measures because we believe these items are indicators of our financial condition and are used by lenders to evaluate potential borrowing capacity. The non-GAAP measurements of Net Secured Debt and Secured Leverage Ratio have certain material limitations. Specifically these measurements exclude unsecured debt and cash and cash equivalents and short-term restricted cash thereby reducing our debt position. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis and because we are obligated to repay our unsecured debt upon its final maturity, these measures may have material limitations. In addition, since a component of our Secured Leverage Ratio is Annualized Adjusted EBITDA, this measure is subject to the same material limitations associated with Adjusted EBITDA. We compensate for these limitations by using Net Secured Debt and our Secured Leverage Ratio as only two of several comparative tools, together with GAAP measurements, to assist in the evaluation of our financial condition.


The calculations of Net Secured Debt and Secured Leverage Ratio are as follows:

 

     March 31, 2008  
     (in thousands)  

Long-term debt

   $ 1,945,000  

Less:

  

Unsecured long-term debt

     (350,000 )
        

Secured long-term debt

     1,595,000  

Cash and cash equivalents and short-term restricted cash

     (162,722 )
        

Net secured debt

     1,432,278  

Divided by:

  

Annualized Adjusted EBITDA

     245,800  
        

Secured leverage ratio

     5.8 x
        
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