Quarterly report pursuant to Section 13 or 15(d)

Debt (Details)

v2.4.0.8
Debt (Details) (USD $)
 3 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Jan. 11, 2013
Starz, LLC
Jan. 11, 2013
Starz, LLC
Sep. 30, 2013
Starz Entertainment
Minimum
Sep. 30, 2013
Starz Entertainment
Maximum
Sep. 30, 2013
Senior Notes
Dec. 31, 2012
Senior Notes
Sep. 30, 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
Sep. 30, 2013
Capital Lease Obligations
Dec. 31, 2012
Capital Lease Obligations
Sep. 30, 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
Sep. 30, 2013
Revolving Credit Facility
Line of Credit
Starz, LLC
Minimum
Sep. 30, 2013
Revolving Credit Facility
Line of Credit
Starz, LLC
Maximum
Nov. 16, 2011
Standby Letters of Credit [Member]
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
Federal Funds Effective Rate [Member]
Starz, LLC
Nov. 16, 2011
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
Alternate Base Rate, Prime, Federal Funds, or LIBOR [Member]
Starz, LLC
Minimum
Nov. 16, 2011
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
Alternate Base Rate, Prime, Federal Funds, or LIBOR [Member]
Starz, LLC
Maximum
Sep. 30, 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
Sep. 30, 2013
Credit Facility 1 [Member]
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Sep. 30, 2013
Credit Facility 2 [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                   $ 3,146,000 $ 0                                            
Debt 1,063,806,000   1,063,806,000   539,805,000         678,146,000 [1] 500,000,000 [1]       76,160,000 [2] 34,805,000 [2] 309,500,000 [3] 5,000,000 [3]                           259,500,000 50,000,000
Debt, Current (4,867,000)   (4,867,000)   (4,134,000)                                                        
Debt 1,058,939,000   1,058,939,000   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 690,500,000   690,500,000                                                            
Debt Instrument, Basis Spread on Variable Rate, Alternate Base Rate Loans                                                 0.50% 0.50% 1.50%   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                                                               1.9319% 1.9291%
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     601,445,000 503,035,000                                     500,000,000                    
Capital Lease Agreement, Imputed Annual Interest Rate           6.40%   5.50% 7.00%                                                
Fair value of long-term debt                   675,300,000                                              
Interest Costs Capitalized 800,000 400,000 2,800,000 900,000                                                          
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 unregistered 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 (the “Securities Act”), 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 aggregate principal amount of 5.0% senior notes due 2019 (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. The New Notes were issued at a price of 102.0% plus accrued interest from September 13, 2012. On May 24, 2013, Starz, LLC completed an exchange offer, exchanging the unregistered New Notes for new registered New Notes. The new registered New Notes are substantially identical to the original New Notes, except the new registered New Notes are registered under the Securities Act and the transfer restrictions and registration rights, and related special interest provisions applicable to the original New Notes will not apply to the new registered New Notes.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 September 30, 2013, Starz, LLC was 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 September 30, 2013, $690.5 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 September 30, 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 rate period:Interest Rate Loan AmountSeptember 2013 - October 20131.9319% $259,500September 2013 - October 20131.9291% 50,000 $309,500The 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 September 30, 2013, Starz, LLC was in compliance with all covenants under the Senior Secured Credit Facilities.