Annual report pursuant to Section 13 and 15(d)

Debt (Details)

v2.4.0.8
Debt (Details) (USD $)
 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Jan. 11, 2013
Starz, LLC
Dec. 31, 2013
Starz, LLC
Dec. 31, 2013
Starz Entertainment
Minimum
Dec. 31, 2013
Starz Entertainment
Maximum
Dec. 31, 2013
Senior Notes
Dec. 31, 2012
Senior Notes
Dec. 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
Dec. 31, 2013
Capital Lease Obligations
Dec. 31, 2012
Capital Lease Obligations
Dec. 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
Dec. 31, 2013
Revolving Credit Facility
Line of Credit
Starz, LLC
Minimum
Dec. 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
Dec. 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
Dec. 31, 2013
Credit Facility 1 [Member]
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Dec. 31, 2013
Credit Facility 2 [Member]
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Dec. 31, 2013
Credit Facility 3 [Member]
Revolving Credit Facility, Senior Secured, Term Loans
Line of Credit
London Interbank Offered Rate (LIBOR)
Starz, LLC
Dec. 31, 2013
Credit Facility 4 [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               $ 3,013,000 $ 0                                                
Debt 1,059,485,000 539,805,000           678,013,000 [1] 500,000,000 [1]       74,972,000 [2] 34,805,000 [2] 306,500,000 [3] 5,000,000 [3]                           21,000,000 259,500,000 15,000,000 11,000,000
Less current portion of debt (4,943,000) (4,134,000)                                                              
Debt 1,054,542,000 535,671,000                                                              
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 693,500,000                                                                
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                                                           1.915% 1.9179% 1.919% 4.00%
Debt Instrument, Face Amount                     175,000,000 500,000,000                                          
Debt Instrument, Interest Rate, Stated Percentage                     5.00% 5.00%                                          
Debt Instrument, Premium                   102.00%                                              
Repayments of term loan under secured credit facilities 721,632,000 504,029,000 59,170,000                                   500,000,000                        
Capital Lease Agreement, Imputed Annual Interest Rate       6.40%   5.50% 7.00%                                                    
Fair value of long-term debt               694,800,000                                                  
Interest Costs Capitalized 3,600,000 2,200,000 2,000,000                                                            
Capital Leases, Period of Lease Agreement       10 years 10 years                                                        
Capital Leases, Successive Renewal Periods Available for Lease Agreement       5 years 5 years                                                        
Capital lease related to Commercial Lease with LPH $ 44,800,000 $ 0 $ 0 $ 44,800,000                                                          
[1] On September 13, 2012, Starz, LLC and Starz Finance Corp. co-issued $500.0 million aggregate principal amount of 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 under our 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 December 31, 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 an 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 million revolving credit facility, with a $50 million sub-limit for standby letters of credit, and $500.0 million of term loans (the “Senior Secured Credit Facilities”). At closing, Starz, LLC borrowed $500 million under the term loan facility and $5 million under the revolving credit facility. Net proceeds from the Senior Notes (as defined below in (b)) and cash on hand were used to repay and terminate the term loans 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 December 31, 2013, $693.5 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% or (c) LIBOR for a one-month interest period plus 1%. Borrowings that are LIBOR loans bear interest at a per annum rate equal to the applicable LIBOR plus a margin that varies between 1.50% and 2.50% 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 December 31, 2013, the following borrowings and related LIBOR or alternate base rate interest rates were outstanding under the Senior Secured Credit Facilities (dollars in thousands): LIBOR or alternate base rate period:Interest Rate Loan AmountDecember 2013 - January 20141.9150% $21,000December 2013 - January 20141.9179% 259,500December 2013 - January 20141.9190% 15,000December 2013 and forward4.0000% 11,000 $306,500The Senior Secured Credit Facilities contain certain covenants that include restrictions on, among others, incurring additional debt, paying dividends or making certain distributions, investments and other restricted payments, liens, guarantees and investments. In addition, Starz, LLC must comply with certain financial covenants including a consolidated leverage ratio, as defined in the agreement. As of December 31, 2013, Starz, LLC is in compliance with all covenants under the Senior Secured Credit Facilities.