This excerpt taken from the VAR 10-K filed Dec 11, 2006.
Debt outstanding at September 29, 2006 and September 30, 2005 is summarized as follows:
The remaining unsecured term loan agreements contain a covenant that requires the Company to pay prepayment penalties if the Company elects to pay off this debt before the maturity dates and the market interest rate is lower than the fixed interest rates of the debt at the time of repayment. They also contain covenants that limit future borrowings and cash dividend payments and require the Company to maintain specified levels of working capital and operating results. For all fiscal years presented within these consolidated financial statements, the Company was in compliance with all restrictive covenants of the unsecured term loan agreements.
Interest paid on debt was $4.1 million for each of fiscal years 2006, 2005 and 2004. At September 29, 2006, aggregate debt maturities for fiscal years 2007 through 2011 and thereafter are as follows (in millions): $7.9, $9.0, $8.0, $9.0, $5.5 and $17.9.
The fair value of the Companys debt was estimated to be $60.4 million at September 29, 2006 based on the then-current rates available to the Company for debt of similar terms and remaining maturities. The Company determined the estimated fair value amount by using available market information and commonly accepted valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the fair value estimate presented herein is not necessarily indicative of the amount that the Company or holders of the
VARIAN MEDICAL SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
instruments could realize in a current market exchange. The use of different assumptions and/or estimation methodologies may have a material effect on the estimated fair value.