Quarterly report pursuant to Section 13 or 15(d)

Debt (Details)

v2.4.0.6
Debt (Details) (USD $)
 3 Months Ended 0 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Jan. 11, 2013
Starz, LLC
Mar. 31, 2013
Starz Entertainment
Minimum
Mar. 31, 2013
Starz Entertainment
Maximum
Mar. 31, 2013
Senior Notes
Dec. 31, 2012
Senior Notes
Mar. 31, 2013
Senior Notes
Starz, LLC and Starz Finance Corp
Feb. 08, 2013
Senior Notes
Starz, LLC and Starz Finance Corp
Sep. 13, 2012
Senior Notes
Starz, LLC and Starz Finance Corp
Mar. 31, 2013
Capital Lease Obligations
Dec. 31, 2012
Capital Lease Obligations
Mar. 31, 2013
Revolving Credit Facility
Line of Credit
Dec. 31, 2012
Revolving Credit Facility
Line of Credit
Nov. 16, 2011
Revolving Credit Facility
Line of Credit
Starz, LLC
Mar. 31, 2013
Revolving Credit Facility
Line of Credit
Starz, LLC
Minimum
Mar. 31, 2013
Revolving Credit Facility
Line of Credit
Starz, LLC
Maximum
Nov. 16, 2011
Standby Letters of Credit
Line of Credit
Starz, LLC
Dec. 31, 2012
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
Starz, LLC
Nov. 16, 2011
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
Starz, LLC
Nov. 16, 2011
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
Alternate Base Rate, Prime, Federal Funds, or LIBOR
Starz, LLC
Minimum
Nov. 16, 2011
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
Alternate Base Rate, Prime, Federal Funds, or LIBOR
Starz, LLC
Maximum
Nov. 16, 2011
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
Federal Funds Effective Rate
Starz, LLC
Mar. 31, 2013
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Nov. 16, 2011
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Nov. 16, 2011
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Minimum
Nov. 16, 2011
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Maximum
Mar. 31, 2013
Credit Facility 1 [Member]
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Mar. 31, 2013
Credit Facility 2 [Member]
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Mar. 31, 2013
Credit Facility 3 [Member]
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Debt Instrument [Line Items]                                                              
Debt Instrument, Unamortized Discount (Premium), Net             $ 3,411,000 $ 0                                              
Debt 991,895,000   539,805,000       678,411,000 [1] 500,000,000 [1]       78,484,000 [2] 34,805,000 [2] 235,000,000 [3] 5,000,000 [3]                           185,000,000 35,000,000 15,000,000
Debt, Current (4,718,000)   (4,134,000)                                                        
Debt 987,177,000   535,671,000                                                        
Line of Credit Facility, Maximum Borrowing Capacity                               1,000,000,000     50,000,000   500,000,000                    
Line of Credit Facility, Amount Outstanding                               5,000,000         500,000,000                    
Line of Credit Facility, Remaining Borrowing Capacity 765,000,000                                                            
Debt Instrument, Basis Spread on Variable Rate, Alternate Base Rate Loans                                           0.50% 1.50% 0.50%   1.00%          
Debt Instrument, Interest Period Used to Determine Basis Spread on Variable Rate                                                 1 month            
Debt Instrument, Basis Spread on Variable Rate                                                     1.50% 2.50%      
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage                                 0.25% 0.50%                          
Debt Instrument, Interest Rate at Period End                                                         1.7022% 1.7042% 1.7037%
Debt Instrument, Face Amount                   175,000,000 500,000,000                                        
Debt Instrument, Interest Rate, Stated Percentage                   5.00% 5.00%                                        
Repayments of term loan under secured credit facilities 516,121,000 1,011,000                                   500,000,000                      
Capital Lease Agreement, Imputed Annual Interest Rate       6.40% 5.50% 7.00%                                                  
Fair value of long-term debt             696,900,000                                                
Interest Costs Capitalized 1,300,000 300,000                                                          
Debt Instrument, Premium                 102.00%                                            
Capital Leases, Period of Lease Agreement       10 years                                                      
Capital Leases, Successive Renewal Periods Available for Lease Agreement       5 years                                                      
Capital lease related to Commercial Lease with LPH $ 44,800,000 $ 0   $ 44,800,000                                                      
[1] On September 13, 2012, Starz, LLC and Starz Finance Corp. co-issued $500.0 million aggregate principal amount of 5.0% senior notes due September 15, 2019 (the “Senior Notes”). The Senior Notes bear interest at a rate of 5.0% payable semi-annually on September 15 and March 15 of each year. Starz Finance Corp. is a wholly-owned subsidiary of Starz, LLC and was formed for the sole purpose of co-issuing the Senior Notes. Starz Finance Corp. does not have and will not have any operations, assets or subsidiaries of its own. The Senior Notes are guaranteed by Starz Entertainment. The net proceeds from the issuance of the Senior Notes and cash on hand were used to repay and terminate the $500.0 million term loan facility under the Senior Secured Credit Facilities. On February 14, 2013, Starz, LLC completed an exchange offer, exchanging the majority of the Senior Notes for new registered Senior Notes. The new registered Senior Notes are substantially identical to the original Senior Notes, except the new registered Senior Notes are registered under the Securities Act of 1933, as amended, and the transfer restrictions and registration rights, and related special interest provisions applicable to the original Senior Notes will not apply to the new registered Senior Notes.On February 8, 2013, Starz, LLC and Starz Finance Corp. completed the issuance of an additional $175.0 million 5.0% senior notes (the “New Notes”), which were issued as additional notes under the indenture governing the Senior Notes. The net proceeds from the issuance of the New Notes were used to repay indebtedness under the revolving portion of the Senior Secured Credit Facilities. Starz, LLC and Starz Finance Corp. have filed a registration statement with the Securities and Exchange Commission related to a registered offering to exchange the New Notes for new registered notes having substantially identical terms as the New Notes. The New Notes were issued at a price of 102.0% plus accrued interest from September 13, 2012.The Senior Notes and New Notes rank equally in right of payment to all existing and future senior obligations and existing and future subordinated obligations. The Senior Notes and New Notes are effectively subordinated to any existing and future secured obligations and to all the liabilities of the subsidiaries that do not guarantee the Senior Notes or New Notes.The Senior Notes and New Notes contain certain covenants that include restrictions on, among others, incurring additional debt, paying dividends, entering into liens and guarantees, or making certain distributions, investments and other restricted payments. As of March 31, 2013, Starz, LLC is in compliance with all covenants under the Senior Notes and New Notes.
[2] On January 11, 2013, Starz, LLC entered into the Commercial Lease with LPH for its headquarters building. The term of the lease is ten years, with successive five-year renewal periods at the option of Starz, LLC. Starz, LLC has recorded a $44.8 million capital lease in connection with this lease agreement with an imputed annual interest rate of 6.4%.Starz Entertainment has entered into capital lease agreements for its transponder capacity. The agreements expire during 2018 to 2021 and have imputed annual interest rates ranging from 5.5% to 7.0%.
[3] On November 16, 2011, Starz, LLC entered into a credit agreement that provides a $1,000.0 million revolving credit facility, with a $50.0 million sub-limit for standby letters of credit, and a $500.0 million term loan facility (the “Senior Secured Credit Facilities”). At closing, Starz, LLC borrowed $500.0 million under the term loan facility and $5.0 million under the revolving credit facility. Net proceeds from the Senior Notes, as defined below, and cash on hand were used to repay and terminate the term loan facility in September 2012. Borrowings under the revolving credit facility may be prepaid at any time and from time to time without penalty other than customary breakage costs. Any amounts prepaid on the revolving credit facility may be reborrowed. The revolving credit facility is scheduled to mature on November 16, 2016. As of March 31, 2013, $765.0 million of borrowing capacity was available under the revolving credit facility.Interest on each loan under the Senior Secured Credit Facilities is payable at either an alternate base rate or LIBOR at Starz, LLC’s election. Borrowings that are alternate base rate loans bear interest at a per annum rate equal to the alternate base rate plus a margin that varies between 0.5% and 1.5% depending on the consolidated leverage ratio, as defined in the Senior Secured Credit Facilities. The alternate base rate is the highest of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus ½ of 1.0% or (c) LIBOR for a one-month interest period plus 1.0%. Borrowings that are LIBOR loans bear interest at a per annum rate equal to the applicable LIBOR plus a margin that varies between 1.5% and 2.5% depending on the consolidated leverage ratio. The Senior Secured Credit Facilities require Starz, LLC to pay a commitment fee on any unused portion under the revolving credit facility. The commitment fee varies between 0.25% and 0.50%, depending on the consolidated leverage ratio.As of March 31, 2013, the following borrowings and related LIBOR interest rates plus the applicable margin were outstanding under the Senior Secured Credit Facilities (dollars in thousands): LIBOR period:Interest Rate Loan AmountMarch 2013 - April 20131.7022% $185,000March 2013 - April 20131.7042% 35,000March 2013 - April 20131.7037% 15,000 $235,000The Senior Secured Credit Facilities contain certain covenants that include restrictions on, among others, incurring additional debt, paying dividends, entering into liens or guarantees, or making certain distributions, investments and other restricted payments. In addition, Starz, LLC must comply with certain financial covenants including a consolidated leverage ratio, as defined in the agreement. As of March 31, 2013, Starz, LLC is in compliance with all covenants under the Senior Secured Credit Facilities.